RALEIGH, N.C.–Prompted by complaints from the former CEO of this state’s largest credit union—and the second largest in the world--the North Carolina Credit Union Commission—which is chaired by an SECU employee--has issued a report saying it has limited authority when it comes to reviewing decisions made by the administrator of the state’s Credit Union Division.
A review was undertaken following issues raised by Jim Blaine, the well-known former CEO of State Employees’ Credit Union, who has been publicly taking his former employer to task after its 2023 annual meeting for changes made related to board nominations.
As CUToday.info reported here, at the 2023 meeting three challengers ousted three incumbent SECU board members as part of a dispute at the credit union over instituting risk-based pricing on loans. As CUToday.info also reported here, that dispute has gone public, with Blaine critical of new CEO Leigh Brady and the change in pricing policy.
Candidate Allegedly Kept Off Ballot
Blaine, who has a popular blog on which he is often critical of SECU, has also criticized the Credit Union Division for not taking action after SECU allegedly made it more difficult for members to self-nominate in board elections.
Blaine, who supported the three insurgent members who were elected to the SECU board, alleged that another person, Susie Ford, was kept off the ballot.
Business NC reported the state’s credit union statutes give the administrator of the Credit Union Division, Kristina Ray, the power to review and approve any amendment to a credit union’s bylaws.
“Blaine contends some of SECU’s tactics are tantamount to bylaw changes and thus reviewable. Ray has not ruled on the changes,” BusinessNC reported.
Commission Chaired by SECU Employee
In response to the issues raised by Blaine, the Commission—which is chaired by Jamie Applequist, who is also chief administrative officer with SECU--established an ad-hoc subcommittee was established to review the issue of authority and to publish a report, which was discussed during the Credit Union Commission’s recent meeting, according to BusinessNC, which stated the decision “didn’t go in Blaine’s favor.”
According to the report, the commission’s “authority to review the administrator’s decision [is] fairly limited,” said Applequist.
The report said the statute establishing the commission gives it authority to hear appeals of the administrator’s actions, but only if they come from a credit union that feels aggrieved by them, according to BusinessNC.
Applequist told the publication complaints from credit union members “would be reviewed,” but “if the administrator stands by decision, there’s other legal alternatives depending on the complaint.”
The Appeals Process
BusinessNC reported there are provisions in North Carolina’s credit union regulations that allow for appeals by those who contend the administrator has affected their “rights, duties and privileges,” which would trigger a hearing process under the Administrative Procedures Act.
BusinessNC further reported that there is also a process to petition for a declaratory ruling from the administrator that’s open to people who need one to “comply with statutory requirements, division rules, or division policy.”
The $54.5-billion SECU is a dominant presence in North Carolina, with more than 2.7-million members.
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