Removing Barriers Blog

Heartland Credit Union Association Strengthening and Protecting Credit Unions in Kansas and Missouri
Posted January 26, 2018 by CUNA Advocacy

Recently, the Heartland Credit Union Association (HCUA) launched efforts to strengthen credit unions in Kansas and to protect credit unions in Missouri.

In Kansas, HCUA introduced a bill in the Senate that would update the state law regarding the member expulsion policy for credit unions. The bill comes at the request of HCUA members who recognized the need to modernize the law in order to continually protect the safety and soundness of credit union members and their assets. The bill, SB 292, would make five changes to the law:

  • Grants authority to the CEO, manager or other credit union employees designated by the board of directors to expel a member in order to address instances where immediate action is needed;
  • Provides flexibility for each credit union to determine its own policy regarding grounds for expulsion. Under current law, expulsion is limited to three specific reasons (abuse of account privileges, failure to utilize services or causing a financial loss to the credit union);
  • Removes the 30-day window during which an expelled member may continue to access credit union services after being expelled;
  • Respects member privacy by transitioning the appeals process to be before the credit union’s board of director instead of before the entire membership; and
  • Further protects the privacy of members by removing the requirement that the full membership be notified of expelled members. Under this bill, a list of expelled members would instead be presented to the board of directors.

In Missouri, the league is engaged on a Property Assessed Clean Energy (PACE) loan bill, SB 933. The measure is one of the two PACE bills that are expected to be filed this year.  While the bill includes some consumer protections, the league continues to meet with stakeholders and expects this language to change.