Member Expulsion Policy

Effective October 30, 2025

General Policy Statement

This policy outlines the various actions, up to and including expulsion from membership, which PeoplesChoice Credit Union (the Credit Union) may take in response to behavior that is illegal, threatening, abusive, or otherwise disruptive to Credit Union operations and/or any activity that causes a financial loss, and/or increased reputational or regulatory compliance risk to the Credit Union. Any suspension or limitation of service is subject to the discretion of appropriate management personnel.

This policy is not enacted to restrict the rights of membership, but rather to address certain unacceptable conduct and protect the Credit Union’s members, employees and property.

Criteria for Limiting Services

All members are entitled to maintain a single share (defined as the par value share or membership share) in the Credit Union and are eligible to attend, participate and vote at the annual and special meetings of the members and maintain a share account. No other access to products, services, or facilities is a right of membership. All such access may be reduced or limited at the discretion of the Credit Union.

Member in Good Standing

A member in good standing is a member who:

  1. Maintains at least their minimum share, as defined within the Credit Union’s bylaws;
  2. Has not had any account with the Credit Union closed due to abuse or negligent behavior;
  3. Has not caused a financial loss to the Credit Union;
  4. Has not engaged in violent, belligerent, disruptive, or abusive activities such as:
    1. Violence, intimidation, threats, harassment, or physical or verbal abuse of duly elected or appointed officials or employees of the Credit Union, members, or agents of the Credit Union. This includes actions while on Credit Union premises and through use of telephone, mail, email or other electronic method;
    2. Causes or threatens damage to the Credit Union property;
    3. Unauthorized use or access of Credit Union property;
    4. Knowingly disseminating incorrect, misleading, confidential, or proprietary information regarding the Credit Union; or
    5. Any actions that may cause material risk or financial harm to the Credit Union

Definition of Cause

For purposes of this policy, “cause” means:

  1. A substantial or repeated violation of the membership agreement of the Credit Union;
  2. A substantial or repeated disruption; including dangerous or abusive behavior, to the operations of the Credit Union; or
  3. Fraud, attempted fraud, or conviction of illegal conduct in relation to the Credit Union, including the credit union’s employees conducting business on behalf of the Credit Union.

Limiting Services

The credit Union may limit services for any member that is not in good standing.

Member Notification

The credit Union will notify the member of what accounts or services have been discontinued.

Expulsion

Notwithstanding any alternative cause for expulsion, a member who has caused the Credit Union a loss but has indicated to the Credit Union an intent to repay that loss in a manner that is acceptable to the Credit Union (at the discretion of management), and who is in fact following through with repayment arrangements, will not be expelled. The Credit Union manager (or delegate) will periodically determine which members satisfy the foregoing expulsion criteria. The Credit Union will follow their procedures for proper written notification requirements, timelines for appeals process, meetings, and record retention as it pertains to all expulsion acts.

Expulsion Process

Notification to all Members

The Credit Union will include either a copy of Article XIV of their bylaws or the standard disclosure as indicated in Credit Union procedures, to all members.

Expulsion by Senior Management Official

The Board of Directors authorizes a senior management official of the Credit Union to conduct a member expulsion when the expulsion criteria have been met. A “senior management official” includes the Chief Executive Officer, or others as designated by the Board. In the event a member engages in activities that meet the expulsion criteria, a Senior Management Official may expel the member in accordance with the following procedures.

Notification to Member of Expulsion

If a member is subject to expulsion, the member will be notified in writing of the basis for expulsion and the effective date of the expulsion. This notice will also include (at a minimum):

  1. Relevant dates, sufficient detail for the member to understand the grounds for expulsion, the member’s right to appeal the expulsion to the Board of Directors, the process and procedures related to the appeal, and if applicable, a statement on the effect of expulsion related to the member’s accounts or loans at the Credit Union.
  2. The notice must also tell the member that any complaints should be submitted to the NCUA’s Consumer Assistance Center if the complaint cannot be resolved directly with the Credit Union.

Expulsion Appeal Process

  1. Within thirty (30) days of the Credit Union notifying the member of expulsion (for purposes of which, notice shall be deemed given upon the date of mailing), the member may notify the Credit Union of their desire to appeal the action by replying in writing by mail or email requesting an appeal for reinstatement with the Board of Directors to:

    PeoplesChoice Credit Union
    ATTN: Board Chairperson
    23 Industrial Park Road
    Saco, Maine 04072

    Email: info@peopleschoiceme.org

  2. The matter of expulsion will be placed on the agenda for the next regularly or specially scheduled meeting of the Board of Directors. The member will be given notice of the date and time of the appeal. The appeal may be made in person, a virtual meeting, or over the phone. The format of the meeting will be at the discretion of the Board of Directors.
  3. The Board may affirm, disaffirm, or modify the action taken by the senior management official. The Board’s decision is final.
  4. If the Board votes to expel the member, the member will be sent a letter, notifying the member of his or her expulsion and include all relevant information about member’s accounts or loans at the Credit Union.

 

Member’s Liability

Expelled members shall continue to be liable to the Credit Union for any outstanding amounts owed to the Credit Union.

Effective Date of Expulsion Policy

This policy will become effective thirty (30) days after the policy is provided to the current membership.

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