RALEIGH, N.C.–Local Government FCU is delaying its plans to end its relationship with State Employees Credit Union of North Carolina.
The partnership is a unique one among credit unions in the United States, and has its roots in a 1970 Supreme Court decision that required SECU to expel local government employees from its field of membership. Saying it would “not be deterred” and is seeking to “preserve access to affordable financial services for these employees,” SECU assisted LGFCU in obtaining a federal charter in 1983.
At that time, LGFCU and SECU entered into an agreement where LGFCU members are served through SECU’s branch network and contact center, while SECU also provides much of LGFCU’s operational infrastructure.
But as CUToday.info earlier reported here, in October 2022 LGFCU announced it was “exploring steps” to operate independently of SECU and to directly serve its membership.
Now, however, the $4.057-billion LGFCU said it will delay ending its relationship with the $50.7-billion SECU until 2025 at the earliest.
“We’ve decided that we need more time to innovate, to ensure that you receive the exceptional service you deserve,” said LGFCU CEO Dwayne Naylor, according to an email cited by WOBX. “In recent months, we’ve heard from many of you about our plans to become an independent credit union, and our goal to build a better experience that meets your needs. We have carefully considered your thoughtful input, and your ideas about in-person service, cash management, and new products and services.”
Members’ Concerns’
According to the report, the main concerns raised from members was what happens to those who prefer to bank in-person and use cash, especially in rural parts of the state. LGFCU’s sister credit union, Civic Federal Credit Union, has no branches and only conducts business online or by phone.
LGFCU has approximately 402,000 members.
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