MCUL preps state CU act update for Legislature

October 27, 2015

LANSING, Mich. (10/27/15)--The Michigan Credit Union League (MCUL) is organizing a targeted campaign to activate credit union advocates to contact lawmakers for support on a six-pack of bills that would institute comprehensive updates to the Michigan Credit Union Act (Monitor Oct. 26).

The updates were introduced in the House last week, and a meeting of the House Financial Services Committee has been called for Wednesday to discuss them.

“We’re making real progress in our efforts to bring the Michigan Credit Union Act into the 21st century,” said David Adams, MCUL and Affiliates president/CEO (Monitor). “It’s crucial that we work with lawmakers to get this legislation passed so that credit unions across Michigan can serve their members with a full array of product offerings without unnecessary regulatory burdens.”

Proposed updates to the act, which hasn’t been changed in more than a dozen years, include:

  • Regulatory relief, such as eliminating unnecessary barriers, updating requirements for board meetings, modernizing information technology vendor contracting requirements, and eliminating limitations on loan prepayment penalties;
  • Improvements to the examination process by ensuring that exam reports remain confidential, that the process is transparent, and that credit unions aren’t penalized for not following best practices, which are not required by law for safety and soundness; and
  • Expanded powers for credit unions, such as allowing credit union service organizations in the state to provide trust services and confirming credit unions’ ability to offer educational scholarships and provide financial counseling to underserved areas.