Recently we have posted two bank account bonuses that required a specific faith to join (Nizari Progressive Federal Credit Union & America’s Christian Credit Union). Several readers have asked if these requirements are legal. I suspect they question this because the Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction based on religion, race, color, national origin, sex, marital status, or age.
American Banker states that there are a few hundred faith-based credit unions (there were 867 Christian based credit unions in 1960). When credit unions start up they can be chartered at either the state or federal level and as part of that members need to define a common bond, this can include faith (called a faith-based charter). I assume as no credit decision is being made when you join a credit union ECOA does not apply.
