Member Expulsion and/or Service Limitation Policy

This policy outlines the various actions, up to and including expulsion from membership, which Listerhill Credit Union (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, is associated with fraud, 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, volunteers, and property.

Guidelines:

MEMBERS IN GOOD STANDING: All members in good standing 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.

“GOOD STANDING” DEFINED: A member in good standing is a member who:

• Maintains at least their minimum share, as defined within the Credit Union’s bylaws;
• Has not had any account with the Credit Union closed due to abuse or negligent behavior;
• Has not caused a financial loss to the Credit Union;
• Has not violated the membership and account agreement, or agreements, terms, or conditions governing use of ancillary products and services;
• Has not engaged in violent, belligerent, disruptive, or abusive activities, including, but not limited to:
  • 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;
  • Bringing or possessing any hazardous or dangerous device on Credit Union premises or at a Credit Union function;
  • Possession, sale, use or the appearance of being under the influence of an unlawful or alcoholic substance on Credit Union premises or at a Credit Union function;
  • Causes or threatens damage to Credit Union property;
  • Unauthorized use or access of Credit Union property;
  • Conducting or attempting to conduct or engage in any fraudulent, dishonest or deceptive activity of any kind involving Credit Union employees or Credit Union services;
  • Making false, vicious or malicious statements about any Credit Union employee or volunteer or the Credit Union and its services, operations, policies, practices, or management;
  • Knowingly disseminating incorrect, misleading, confidential, or proprietary information regarding the Credit Union; or
  • Any actions that may cause material risk or financial harm to the Credit Union.

MEMBERS NOT IN GOOD STANDING: The Credit Union may terminate or limit services for any member that is not in good standing. Whether violent, belligerent, disruptive, or abusive activities have occurred will be determined in the sole discretion of the Credit Union. In the interest of safety, the Board authorizes management to apply appropriate measures against those engaging in these types of conduct without the necessity of a prior vote. Decisions to expel will be ratified at the next scheduled Board meeting.

Notice to Member: The Credit Union will notify the member of what accounts or services have been discontinued.

EXPULSION BASED ON LOSS: 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 (in the discretion of management), and who is in fact following through with repayment arrangements, will not be expelled. The Credit Union will periodically determine which members satisfy the foregoing expulsion criteria. Notice to Member: The Credit Union will notify members who have caused the Credit Union a loss of the Credit Union’s policy and will provide such members with the opportunity (as deemed appropriate by Credit Union management) to indicate to the Credit Union their desire to pay their debts and to begin repayment.

SOCIAL CHANNEL RESPONSIBILITY: Members are encouraged to engage in dialogue with the Credit Union online, via our online social channels. Members have a responsibility to keep the conversations in these public forums free of inappropriate language, terms and subjects. They also have a responsibility to avoid derogatory or defamatory statements or claims. The Credit Union reserves the right, at its discretion, to remove any post or comments that it deems in violation of these standards.

MEMBER'S LIABILITY: Expelled members shall continue to be liable to the Credit Union for any outstanding amounts owed to the Credit Union, which is disclosed in the membership agreement provided to members upon acceptance to Credit Union membership.

RIGHT TO BE HEARD: In accordance with our Bylaws, a member who has been expelled may not be readmitted to membership except upon approval by a majority vote of the Board after application and proof that the applicant remains within the Credit Union’s field of membership, has adequately explained, addressed, or remedied the conditions leading to expulsion, and will abide by the terms and conditions of membership. Not more than one such application for readmission may be made within any 12-month calendar period.