In 1963, the party split into two factions. "Social Credit Action" was established by Neil Carmichael, a stamp and coin dealer, who was chosen the group's leader, Carmichael's membership in the Ontario Social Credit Party had not been renewed after he made anti-Semitic statements. Other founders of the splinter group were James Audy, an accountant, who became party president, and David Hartman of Toronto. The group was formed when the official party refused to actively campaign in the 1963 provincial election. Audy had been the federal Social Credit Party's candidate in Spadina riding in the previous election.