Judges: SHARYN L. SMITH
Agency: Department of Financial Services
Latest Update: Apr. 23, 1984
Summary: Postal Credit Union showed inconveniece of existing federal credit union which did not prove it should be harmed by licensure.
83-3821.PDFSTATE OF FLORIDA
DIVISION OF ADMINISTRATIVE HEARINGS
MIAMI FEDERAL CREDIT UNION, )
)
Petitioner, )
)
vs. ) CASE NO. 83-3821
) MIAMI POSTAL SERVICE CREDIT UNION ) and DEPARTMENT OF BANKING AND FINANCE, )
)
Respondents. )
)
REPORT
Pursuant to notice, the Division of Administrative Hearings, by its duly designated Hearing Officer, Sharyn L. Smith, held a public hearing in this case on March 6, 1984, in Miami, Florida. The following appearances were entered:
For Petitioner: David S. Ureban
Miami Federal Credit Union
51 Southwest 1st Avenue, Room 208a Miami, Florida 33130
For Respondents: John Willis, Manager
Miami Postal Service Credit Union Post Office Box 6M66F
Miami, Florida 33152
Carl B. Morstadt, Esquire Department of Banking and Finance 1302 Capitol
Tallahassee, Florida 32301
The issue for determination at the final hearing was whether the Respondent Miami Postal Service Credit Union's application for permission to expand its charter to include federal employees working and residing in Dade County and family members of Postal Service Employees not residing under the same roof, should be granted.
At the final hearing, John Willis testified for the Respondent Department of Banking and Finance. Exhibits 1 and 2 were admitted into evidence.
Respondent's Exhibit 2, a projected financial statement, was sealed. David S. Ureban testified for the petitioner Miami Federal Credit Union.
FINDINGS OF FACT
On November 16, 1983, the Respondent Miami Postal Service Credit Union (hereafter Miami Postal) filed an application for an expanded field of membership with the Respondent Department of Banking and Finance (hereafter Department).
The Department noticed the application which it received from Miami Postal on November 23, 1983.
Victoria N. Cecile, Office Manager of Petitioner Miami Federal Credit Union (hereafter Miami Federal), filed a written protest with the Department in opposition to Miami Postal's proposed expansion on December 7, 1983.
Miami Postal is seeking to expand its field of membership due to numerous inquiries it has received from federal employees who work in the vicinity of Miami International Airport. These federal employees have sought the services of Miami Postal since it is located in close proximity to the area where they work. It is inconvenient for many of the federal employees who work near the airport and live in West Dade to utilize the services offered by Miami Federal because of its downtown location.
Miami Postal, which was chartered in 1926, has a present staff of 20 full-time employees and 8,500 members. It has approximately twenty-seven million dollars in assets and is in good financial condition.
The geographic limit of Miami Postal is Dade County. Although it has no branch offices, it does have Automatic Teller Machines for members' use at Publix Supermarkets.
If Miami Postal's membership is expanded to include all federal employees in Dade County, their immediate families and family members of postal service employees not residing under the same roof, a staff increase of two to three employees would be required to service the added members.
The expansion will be accompanied by an advertising campaign which is reflected in Miami Postal's budget. Moreover, the expansion would not result in any lower level of service to existing members. For example, the rates charged by Miami Postal for new and used auto loans will not increase as a result of the expansion and dividends would continue to be paid regularly to members.
Miami Postal has received numerous requests for home equity loans, an area which it has been unable to service. However, with the additional capital expected to be generated by new members, the possibility exists that Miami Postal could begin lending in this area.
Although Miami Postal may take potential members away from Miami Federal, the precise effect of the proposed expansion on the existing facility is undetermined. Miami Federal presented no evidence concerning how it would be financially damaged by the expansion other than the possible loss of potential members. Miami Federal would continue to pay dividends and would not go out of business if the expansion were approved.
Miami Federal disputed the contention that its location is inconvenient to many federal employees who live in West Dade since it offers consumers the ability to transact business by phone and mail.
CONCLUSIONS OF LAW
No evidentiary issues were presented at the final hearing which require a ruling in this Report. See Section 120.57 (1)(b)(12), Florida Statues.
DONE and ENTERED this 23rd day of April, 1984, in Tallahassee, Florida.
SHARYN L. SMITH
Hearing Officer
Division of Administrative Hearings The Oakland Building
2009 Apalachee Parkway
Tallahassee, Florida 32301
(904) 488-9675
Filed with the Clerk of the Division of Administrative Hearings this 23rd day of April, 1984.
COPIES FURNISHED:
David S. Ureban
Miami Federal Credit Union
51 SW 1st Avenue, Room 208a Miami, Florida 33130
John Willis, Manager
Miami Postal Service Credit Union Post Office Box 6M66F
Miami, Florida 33152
Carl B. Morstadt, Esquire Department of Banking and Finance 1302 Capitol
Tallahassee, Florida 32301
Honorable Gerald A. Lewis Comptroller, State of Florida The Capitol
Tallahassee, Florida 32301
Docket for Case No: 83-003821
Orders for Case No: 83-003821
| Issue Date |
Document |
Summary |
|
Apr. 23, 1984 |
Recommended Order
|
Postal Credit Union showed inconveniece of existing federal credit union which did not prove it should be harmed by licensure.
|
