MOLINE, Ill. – State regulators fined DHCU Community CU $10,000 for violating rules on granting an unsecured consumer loan.
The Illinois Department of Financial and Professional Regulation, Division of Financial Institutions said the $450-million credit union granted a $350,000 unsecured loan to a member of the credit union’s executive management staff on Sept. 21, 2011, but the maximum unsecured loan limit for a credit union with total assets in excess of $100 million is $40,000.
In addition to violating the loan limit of $40,000, the credit union failed to remedy the violation by the initial deadline of May 31, 2012, and by the continuance date of June 30, 2012, the order stated.
Terry Brahm, president of DHCU, yesterday told Credit Union Journal the loan has been repaid. “We disagreed with the department’s classification of the loan,” he said. “The loan has been paid and there has been no loss on the loan.”