2. Monday, April 21, 2014 - 10:55 AM
I belong to a local credit union and it has taken over credit unions in trouble in our state and states close to Michigan. They have recently joined with other credit unions and changed their name and are now state chartered instead of federally charted. They have sent out new disclosures and they are now custodians instead of trustees of our IRA CD's. The new disclosure starts out and is word for word for several paragraphs the same as TIAA CREF except for the word trustee and custodian.
I also have a friend who is the manager and runs a very small credit union that I also belong to and asked her what the difference is between state and federally charted. She said that in "Michigan" you still have to follow all laws as if you were federally charted and then have to do the additional requirements required by the state. She said in Michigan credit unions will sometime go back and forth because of the laws on doing mtgs. She said the Michigan state charter is more lenient in the last 4-5 years than the federally chartered credit unions. She said she did not know about what the difference are in other states.
I was very concerned because the head of the state charter is appointed by the gov. My friend said that the board of our local credit union (of which 4 are my friends) have voted to have both the state and federal audit so that there is no collusion. Pretty sad commentary.
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Jan 16, 2010
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