While these people sometimes have expertise as firefighters, teachers or police officers, they might not be as experienced in running a financial institution. While bank boards of directors are paid for their risk, we want to ensure credit union volunteers are protected from petty litigation. Annaloro believes the Volunteer Protection Act is just one example of how League-driven cooperative actions taken on behalf of the industry can strengthen the entire movement. The state's Volunteer Protection Act was written to protect and encourage individuals to continue to serve on credit union boards, and serve the public good. However, the bill was carefully crafted to continue to also protect consumers' rights to use the courts to seek appropriate judicial remedies, if necessary.
Members can still file a claim against the credit union.
While volunteers may be shielded from personal liability, a person harmed could still bring suit against the institution itself for relief. Under the act, credit unions can still sue their own volunteers if necessary. Also, credit union volunteers are not exempted from liability to the government. This allows the Department of Financial Institutions or the NCUA to continue to prosecute or bring other sanctions against volunteers. The legislation is seen as a significant advancement for an estimated 2,500 credit union volunteers in the state.