In late July, the NCUA Board approved the final rule on member expulsion for federal credit unions as required with the passage of the Credit Union Employee and Member Safety Act (H.R. 2311 / S. 1767). The bill was introduced by former Nebraska U.S. Senator Ben Sasse on behalf of Nebraska’s credit unions and Minnesota U.S. Senator Tina Smith. The bill was passed in 2022 and signed by President Biden.
The final rule amends the standard federal credit union bylaws by allowing the board of directors to adopt a policy by which members can be expelled with a two-thirds vote of a quorum of the board of directors. NCUA Chairman Todd Harper said of the rule, “The final rule we are considering today strikes a balance between addressing the legitimate concerns over providing services to violent and disruptive members and providing due process rights to credit union member-owners. These rights include proper disclosures, hearings, and an appeals process.” Federal credit unions will retain the ability to limit services to provide credit unions with an option other than expulsion.
The final rule provides parity for federally chartered credit unions in Nebraska with state-chartered credit unions which have had the ability to expel members through the State Credit Union Act. 
