Trades send early warning to Congress and banks on military base issue
In a demonstration of unity, the leaders of the credit unions of NAFCU, CUNA, and the Defense Credit Union Council (DCUC) threw heavily worded artillery pieces, in letter form, to members House and Senate committees on armed services in an attempt to defend credit unions housed on military bases.
Every year, it seems, once the National Defense Authorization Act is enacted for legislative increases, credit union officials must go on the offensive not only to maintain free-standing status. rent credit unions located on military bases, but also to defend against banks. search for equal treatment on these same bases.
On Tuesday, CUNA President / CEO Jim Nussle, NAFCU President / CEO Dan Berger and DCUC President / CEO Anthony Hernandez sent two jointly signed letters to leaders of the House and Senate committees to present their first arguments to protect the military from the credit unions. basic status, since credit unions operate on a not-for-profit basis, unlike banks.
“This focus on service to their members and their base, rather than on profits, has led Congress to give the DoD the discretion to allow credit unions to use land and space on military bases.” at a nominal rate. Historically, defense credit unions have been urged to stay put to alleviate the high transaction costs associated with poor service from other financial institutions. It’s no secret, being member-owned and not-for-profit, this is how defense credit unions keep interest rates low and meet member needs (eg. , Deployment), which improves the financial readiness of our armed forces. Other financial institutions simply cannot match the difference between credit unions, âthe letter said.
Letters from credit union leaders specifically targeted Wells Fargo and Bank of America as large for-profit entities asking Congress for “parity” with credit unions on the Military Leasing Act issue.
“It is alarming that big banks such as Wells Fargo and Bank of America, which regularly make billions in profits, are equal to nonprofit credit unions if such a provision becomes law,” the letter said.
The letter continued, “Rather than seeking a productive solution available to them under current law, they have chosen to target their long-standing Nemesis credit unions in the process.”
Currently, President Biden’s request for discretionary spending for fiscal year 2022 has been submitted to the Senate Appropriation Committee. While the issue of credit unions is a relatively small part of the overall bill, credit unions and banks are treating it as a line to defend. Lawmakers are expected to begin marking the bill this summer.
Both letters are available to read here: