Member Expulsion Policy

I. Member Expulsion Policy

In the interest of protecting the assets of the Credit Union and maximizing dividends to members, the board of directors adopts the following member expulsion policy, allowable under the Illinois Credit Union Act. This policy provides for expulsion of members that put the credit union at risk of loss or liability, or whose actions are determined to be inappropriate, threatening or prohibited. Expulsion may result, upon board action, in the situations described below.

In most cases, members will be given a warning about inappropriate behavior and given an opportunity to correct without the need for further actions by the credit union. When applicable, limiting services will occur as a preventative step to cure, with the final step being expulsion. Exceptions to expedite expulsion would include serious threats of violence to staff or members or other extreme circumstances.

1. Expulsion Criteria

 (a) Member actions that are fraudulent or put the credit union at risk of loss or liability that may subject the member to expulsion action by the board include the following:

• Members who engage in check kiting, attempted or actual deposits of counterfeit checks or other nonnegotiable items, foreign ATM transfers between checking and savings accounts which result in overdrafts of both accounts, attempted or actual theft of credit union or other member’s funds, or similar activities whereby the member illegally attempts to obtain funds not due the member.
• Members who fail to protect blank personal checks as evidenced by repeated claims of lost checks and unauthorized transactions (particularly when the forgeries are committed by persons living in the member’s household); or fail to protect access to plastic cards and security information such as personal identification numbers as evidenced by repeated claims of unauthorized transactions (particularly when the unauthorized transactions are committed by persons living in the member’s household); or engage in similar activities resulting from repeated failure to keep their accounts and records secure.
• Members who use or attempt to use false or forged documents or false information to obtain credit or access to an account.
• Members who use or attempt to use false identities.

(b) Member actions resulting in inappropriate behavior involving another person that may subject the member to expulsion action by the board include the following:

• Members who engage in physical or verbal abuse of another credit union member or an employee of the credit union, while transacting business with the credit union, this can include interactions in person, by phone, email or webchat.
• Members who engage in inappropriate conduct or language directed at staff based on sex, race, national origin, marital status, sexual orientation, physical or mental impairment, age, or membership in the uniformed services, or similar activity whereby staff are subjected to verbal or physical abuse.
• Members who engage in unlawful transactions or inappropriate activity based on law enforcement guidelines.

(c) Member is engaging in businesses prohibited at Great Lakes Credit Union, including the following, but not limited to:

• Money Services Businesses (MSBs)
• Marijuana Related Businesses (MRBs)
  • Except for Ancillary 2 Businesses
• Gambling Businesses
  • Except for retail establishment with licensed gaming machines
• Crypto Currency Dealers/Exchanges
• Interest on Lawyer Trust Accounts (IOLTAs)
• Utilizing account for unlawful purposes

2. Notice to Current Members.

The expulsion criteria will be communicated to all current members by either mail delivery, electronic delivery, by posting on the credit union website or disclosure in membership newsletters or account statements.

3. Notice to New Members.

The expulsion criteria will be communicated to new members at the time of application, by using one of the distribution methods described in paragraph 2.

4. Expulsion Procedure.

In the event a member causes a loss to the Credit Union or engages in activities that meet the expulsion criteria, the board of directors may expel the member in accordance with the following procedure:

      (a) The matter of expulsion will be placed on the agenda for the next regularly or specially scheduled meeting of the board of directors;