Prohibition on Use of Reputation Risk
Summary
The National Credit Union Administration is proposing a rule to prevent credit unions from making decisions based on reputation risk concerns, which could limit their ability to refuse service to certain customers or industries based on potential public relations problems. This rule aims to ensure that credit unions serve their members fairly without turning away customers simply because serving them might look bad to the public.
Key Points
- 1Credit unions would be prohibited from denying or limiting services to customers solely because of reputation risk—concern about how serving them might affect the credit union's public image
- 2The rule applies to credit unions nationwide and affects how they make lending and service decisions for individuals and businesses
- 3This prohibition would prevent discrimination against entire industries (like firearms dealers or cryptocurrency businesses) based purely on reputational concerns rather than actual financial risk
- 4Credit unions could still deny service for legitimate reasons like creditworthiness, compliance violations, or other valid risk factors unrelated to reputation
- 5The public has until December 23, 2025 to submit comments on the proposed rule before the NCUA makes a final decision
Key Dates
October 21, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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