A former employee is suing the $1 billion Communication Federal Credit Union for allegedly firing her because of her race, gender and age, as well as for reporting unethical business practices, and complaining she was paid less than her male predecessor.
Communication FCU denied the 49 allegations detailed in a 13-page civil lawsuit filed in U.S. District Court in Oklahoma City last month by 51-year-old Renne A. Clark. After joining the credit union as an assistant collector in 2005, she was appointed collections department supervisor in 2008 and then fired in July 2015.
The lawsuit also alleged unethical bank and credit union practices, such as scapegoating a female employee over 40 who was subsequently fired for the large amount of debt charge-offs that Communication FCU was being cited for by NCUA auditors in July 2015.
Communication FCU also denied this allegation in response to Clark’s lawsuit.
“Defendant (Communication FCU) did not discriminate or retaliate against Plaintiff (Clark) on any illegal basis,” lawyers representing Communication FCU wrote in a legal brief.
Larry Shropshire, president/CEO of the Oklahoma City-based Communication FCU, did not respond to CU Times’ requests for an interview about the lawsuit.
Clark’s workplace troubles began in 2009 when she questioned her supervisor, Billy McDaniel, senior vice president of lending, about pay discrepancies. As a collection department supervisor, she found out that she was not paid as much as her male predecessor.
McDaniel (pictured) allegedly told Clark that if she were a male outside candidate for the position she would have been paid more for the job and he did not raise her pay equal to her male predecessor, according to the lawsuit.
Clark’s lawsuit also alleged that McDaniel did not discipline male employees for creating a hostile work environment based on sex and race.
For example, in 2009, Clark reported to McDaniel that an employee sent an email to other employees that referred to Clark and other women in the department as “old ugly fat women” who were “bitter and take themselves way too seriously.” The email’s author also wrote that Clark and other women were “dumb,” “useless,” and “small-minded,” according to the lawsuit.
The lawsuit also alleged that another employee, who reported to Clark, was telling members that President Barack Obama’s brother lived in a hut in Africa and talked negatively about Iranians. Even though she had written up the employee, he continued to talk openly and negatively about other races to members.
When Clark brought her concerns to McDaniel, he allegedly took no action.
Clark also alleged that McDaniel contributed to a hostile workplace by asking her whether she was dating and with whom. He continued to ask about her dating life even though she told him she preferred not to talk about her personal life.
Nevertheless, McDaniel’s inquiries persisted. He offered to introduce her to his friend and asked her if she was dating an individual who worked for a credit union vendor, according to the lawsuit.
Two weeks before Clark was fired in July 2015, she was discussing the credit union’s debt charge-offs with McDaniel.
According to the lawsuit, McDaniel was preparing a response for NCUA auditors to explain the large amount of debt charge offs for which the examiners were citing the credit union for.
“During their discussion, Plaintiff (Clark) told McDaniel that when this situation occurred Defendant (Communication FCU) had to respond to an NCUA inquiry as this, a female employee over forty (40) was blamed for the issue (i.e., used as a scapegoat) and subsequently fired. McDaniel did not dispute that this occurred,” Clark alleged in the lawsuit.
According to the credit union’s NCUA Call Reports, Communication FCU posted $8.5 million in total charge offs at the end of 2015. In 2014, its charge offs totaled $5.7 million and its charge offs in 2013 amounted to $3.6 million. In 2012, the credit union’s total charge offs were $2.3 million.
What’s more, by the end of the first quarter of 2016, Communication FCU posted total charge off of $3.6 million and by the end of the second quarter its total charge offs were $6.6 million, according to Call Reports.
In 2014 and 2015, the credit union’s net charge offs were 1.02% and 1.09%, respectively, which is substantially higher than the peer average of 0.42%, according to NCUA financial performance reports. By the end of the first and second quarters of this year, Communication FCU’s charge offs increased to 1.60% and 1.40%, respectively. Peer average at the end of March 2016 was 0.44%, according to the NCUA.
Clark also claimed that her termination was motivated by her opposition to and reporting to the NCUA about unethical banking and credit union practices such as charging hidden fees without notifying members, not properly verifying customers’ identity before issuing loans or opening accounts, allowing individuals in significant debt to the credit union to have additional loans, and illegally repossessing vehicles after a member filed for bankruptcy or for non-payment when a member actually made a payments.
Communication FCU also had denied all of these allegations.
When she was fired on July 30, 2015, McDaniel told Clark she was being let go because it was not working out, that management decided they did not need her any longer and that it was not personal.
However, after she was terminated, Clark received a letter from McDaniel that alleged she had been verbally counseled on numerous occasions and that she failed to meet expected leadership standards.
Clark claimed McDaniel’s assertions were false and was not disciplined by McDaniel. Clark also said she received satisfactory or better performance reviews and pay increases annually that were approved by McDaniel.
After she was fired, Clark claimed she was replaced by a significantly younger male with limited experience in collections.
McDaniel was not available for comment when reached at his office via phone on Tuesday.
