While bank boards of directors are paid for their risk, we want to ensure credit union volunteers are protected from petty litigation. Protecting volunteerism in the 21st century is critical. Citizen service is at the heart of the credit union movement. The Washington state 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 also continue protecting 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.