Running a credit union already has enough cost associated with it. However, failure to use compliant forms could cost a lot more. Examiners can walk into a credit union at any time, perform a compliance check, and levy a fine if a credit union is found to be out of compliance. So how much is compliance oversight costing your credit union? Fines can run hundreds of thousands of dollars. But the cost does not stop there. Besides the direct financial costs associated with these situations, there are many other ways that such noncompliance can cost your credit union. Let’s look at the cost of credit union non-compliance which is not directly pecuniary.
Cost of Having Non Compliant Credit Union Forms
Credit unions’ involvement in the community sets them apart from traditional financial institutions. Even further, credit unions are involved with a specific part of the community. This relationship is intimate and close. Being in the spotlight for non-compliance can damage this relationship and hinder future growth.
In worst-case scenarios, you may be issued a cease and desist order until compliance is re-established. This means no further home lending, auto lending, consumer lending, or business lending until your credit union is compliant again. In other instances, there could be a loss of charter. This could substantially limit future opportunities.
Reduced Field of Membership Potential or Expansion.
With a damaged reputation and limited opportunities, expansion could be all but impossible if forms are found to be out of compliance. In addition, the word-of-mouth factor will come into play, and a snowball effect could be seen, as current members learn of the compliance issue and seek to place their funds elsewhere.
So, how do you combat this? Make sure you are using compliant forms. Oak Tree Business Systems, Inc. credit union forms are compliant and up to date regarding all state and federal regulations. Furthermore, our forms are fillable and will integrate with your current data processor. Also, forms can be customized to meet your credit union’s needs and reflect your brand. Using our forms will save you money and membership. We would love to hear from you and see how we can make worrying about forms compliance a non-issue for you. Chat with us on our social media; Twitter, Facebook, or Instagram.