CUs Notch Another Win in Years-Long State-Level FOM Battle

SCC Judges Handed Case; Bankers Still Have Option to Appeal Case to State Supreme Court

Marking another significant win in a state-level field-of-membership battle with bankers now stretching into its third year, a State Corporation Commission hearing examiner sided strongly with Virginia Credit Union and the League.

In a recommendation to the State Corporation Commission judges, Chief Hearing Examiner Alexander Skirpan Jr. is recommending to the SCC judges that the case brought by the Virginia Bankers Association and several of its member banks be dismissed and that Virginia Credit Union’s application to add the Medical Society of Virginia to its field-of-membership be approved.

“The latest proceedings in this case raised the stakes by requiring Virginia Credit Union to prove compliance with the applicable laws governing field-of-membership expansions,” noted Virginia Credit Union League President/CEO Carrie Hunt. “The fact the hearing examiner sided with us is a significant win.”

As background, this case involves a field-of-membership expansion filed by Virginia Credit Union to add the Medical Society of Virginia to its membership. The Medical Society is a 10,000-member association of medical professionals from across the Commonwealth. The FOM expansion was approved by the state Bureau of Financial Institutions in 2019, with bankers filing a petition in July of that year, asking the State Corporation Commission to reconsider BFI’s decision.

In July 2020, the case received its first formal hearing, with more than 10 hours of testimony and the introduction of dozens of exhibits. In October 2020, the hearing examiner filed her recommendation, which also sided strongly with Virginia Credit Union and the League. But in December 2020, the case was remanded for new proceedings, with the latest hearing in this case taking place in October 2021 over the course of two days.

Credit union, League and expert witnesses once again testified during the hearing, with the bankers attempting to prove the Medical Society had the resources and expertise to form its own credit union.