Finance, Investments IIs this an Equal Credit violation?

Scenario: Credit union that serves a particular sector. Say they service any bees. If you are a bee , you are eligible to join just because you are a bee. We will call them core members. Dragonflies, can join, but they are required to donate flowers to become a member. We will call them alternative path members. Now, say a bee and a dragonfly both apply for a loan, they are equal in every way, with the exception of being core or alternative path membership. The bee gets a far more favorable rate than the dragonfly. (Sorry, hiding ID of CU, I just started to work there).

Is this a violation of equal credit regulations? I have searched and searched and give up. BTW, this applies to all 50 states, headquarters selected.

Thank you,
The Gardener

GardenerExtreme said:

Is this a violation of equal credit regulations? I have searched and searched and give up

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One word answer, NO.

Should you disagree, contact your elected state and/or federal legislators for further clarification.

Heck, you can also reach out to your governor and/or the president.

The NCUA can also be contacted.

"As credit unions grow larger and more complex, the regulatory framework must keep pace to maintain the strength and stability of the entire credit union system. In our rulemaking, the NCUA responds to these changes and addresses emerging risk.

We also endeavor to reduce the regulatory burden, where appropriate, and provide credit unions with more flexibility to manage their operations, reduce their administrative hurdles, and allow credit unions to better compete in the financial services marketplace."



These folks are your NY State Agency regulating Credit Unions.

The Department of Financial Services regulates many different types of institutions. Supervision by DFS may entail chartering, licensing, registration or filing requirements, examination, etc.

The "Who We Supervise App" on the DFS Portal can help you find out whether a financial institution is licensed by the Department, and what additional locations or branches they may have:


Good luck, happy hunting as you wade through the putrid gubmint swamps.

GardenerExtreme said:

The bee gets a far more favorable rate than the dragonfly

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As far as I know, dragonflies are not a protected class under federal or state anti-discrimination laws.

OK, that's a little facetious so let's use something that's real.

Start with a credit union that's created for a specific occupation. Teachers for example. Teachers become members and get great rates and benefits.

Time marches on and, in keeping with good old American corporate greed, the founders decide to open the membership to anybody who wants to join but that class of member (other than teachers) don't get quite the rates and benefits that teachers get.

That's not illegal.

Is that what you are asking?

GardenerExtreme said:

Is this a violation of equal credit regulations? I have searched and searched and give up. BTW, this applies to all 50 states, headquarters selected.

Thank you,
The Gardener

Click to expand...

No. Indeed, that's what the CU is going to have to do. CU's are formed to serve a particular community, and exists to benefit that community. Because of that, they are treated a bit differently under the law than a regular bank, which involves trade offs. One the rules is that the members that the CU was set up to serve have to get something better than any other member of the public. If the CU lets anyone join and get all the same benefits, it's not going to be a CU anymore. It will instead look like a bank and will have to meet the stricter rules that banks have to follow. So the bees get the better benefits because they are the community that the CU was organized to serve. If the CU lets others join, like dragonflies, those others cannot get all the same benefits that the bees get and still remain a CU.

Dragonflies are often seen feasting upon bees.

Bees are useful to humans and plant life.

Dragonflies love love to feast upon bees!

Bee idioms:

Put the bee on someone - ask for money.
Queen bee - a woman with authority over a group.
Make a bee line - go from point A to point B quickly.
Busy as a bee - to be really busy.
Bee in one's bonnet - have an obsession about something.
The birds and the bees - teaching children about human reproduction.
Make like a bee and buzz off - scram.
Float like a butterfly sting like a bee - Be kind but ready to fight.

And, finally, the fee's knees - something excellent.
Which can also describe the bee itself.