Saturday, December 16, 2023

The North Carolina Credit Union Division: North Carolina State Government At Its Best?



✅ From: Ray, Kristina W

December 15, 2023 - 5:30 pm

Mr. and Mrs. Blaine,

Please refer to the response dated October 19, 2023. 


Kristina Ray

Administrator of Credit Unions

 205 West Millbrook Road, Suite 105

 Raleigh, NC 27609


✅ Here was the letter sent to Ms. Ray on December 5, 2023: 

Dear Ms. Ray,

Happy Holidays! Took your advice and asked legal counsel for a review of our correspondence, over the last 6 months. As with most extended families, it's not too difficult to find a lawyer somewhere up the family tree willing to share an opinion - when, of course, paid an appropriate retainer. In this case, the hourly rate was two martinis, comfortable chair, roaring fireplace on a cold and rainy afternoon. 

Legal counsel said it was entirely appropriate for a consumer to ask a State regulator about her authority under N.C. State law. He pointed out the "Consumer Questions" section on the NCCUD website [here's the link] as a clear indicator of your responsibility and past willingness to respond to N.C. consumers; let alone the whole website heading: "Consumers" [here's the link], which includes "Consumer Information, Consumer Resources, Consumer Questions, File a Complaint". He also noted that on the website you were officially designated by NCCUD as the "go to person" [see link, at bottom] on any review of credit union rules and regulations. Lastly, he said it was unclear why you would refuse further clarification of the prior request, since responding to a consumer was clearly not an issue - as Administrator you have already crossed that bridge with our prior correspondence. 
The following alternatives were proposed:
  1. Politely re-request that the prior response to the two questions be clarified and state that a legal opinion is not being requested.
  2. Appeal the latest response to the Credit Union Commission.
  3. Ask a state-chartered credit union, as a courtesy, to file the 2 questions with the Administrator.
  4. Ask your N.C. State Representative (or any Representative) to file a request for answers to the 2 questions with the Administrator. Responses are generally mandatory.
  5. Ask your State Senator (or any Senator) to file a request for answers to the 2 questions with the Administrator. Responses are generally mandatory.
  6. Ask members from all across the State to also request that their Representative/Senator write the Administrator requesting an answer to the 2 questions. The more the merrier.
  7. Request through the Legislature that the Administrator be required to appear before any future hearing on H. 410  to answer these 2 questions and any others surrounding the role of NCCUD in the approval and monitoring of bylaw amendments.
  8. Encourage consumers/credit union members to attend the next Credit Union Commission Meeting (Spring 2024 Meeting coming up) to publicly comment on these 2 questions and other issues concerning the supervision of credit unions by the Administrator. Again, the more the merrier.
  9. File a formal complaint.
  10. All of the above.

 Thought all that was a fairly good two-martini investment. And, we can do any or all the above if you feel that is the way this must proceed.

Our strong preference however is #1. So our formal request is: Would you please clarify your prior (October 19, 2023) response to the 2 questions below. We are not requesting a legal opinion and understand you can not provide legal advice.

✔  Q: 1)  Is the N.C. Credit Union Division required by North Carolina law to monitor and enforce compliance by state-chartered credit unions with their bylaws?

Q: 2)  May a N.C. state-chartered credit union adopt rules, policies and procedures which effectively amend its bylaws without approval by the NCCUD
Thank you. We look forward to your prompt response .
Jean and Jim Blaine
December 5, 2023 
  Oh me, oh my... "Sincerely" amazing!