WASHINGTON—As Congress enters the final week of the first session of the 119th Congress, credit union advocates say debates over access to banking, debanking, and housing policy are moving forward with credit unions largely on the margins.
The Defense Credit Union Council said it is tracking and will be commenting on the Senate Banking, Housing, and Urban Affairs Committee hearing on banking-related issues. One key point DCUC plans to raise is the continued practice of some institutions choosing whether to bank—or not bank—with certain industries or individuals based on political views or other non-financial factors.
DCUC Chief Advocacy Officer Jason Stverak said this trend highlights the importance of expanding access to credit unions.
“Because credit unions are member-owned institutions, it is critical that consumers have meaningful choice when it comes to financial services,” Stverak said Monday during a call with the media. “If someone is unhappy with how they are being treated by their current institution, they should have the ability to join a local or alternative credit union that meets their needs. That is why we will again emphasize the importance of expanding credit union fields of membership, an issue we will continue raising with policymakers and stakeholders.”
DCUC will also be closely watching the large markup scheduled by the House Financial Services Committee this week.
“Once again, the package is heavily focused on bills targeted at the banking industry, with credit unions largely left on the sidelines,” he said. “We will continue to strongly advocate that as Congress begins its new session in January, credit unions and their priorities receive parity with banking and debanking-related issues. Nearly one-third of Americans are credit-union members, and the issues affecting those institutions deserve greater attention from the committee. We look forward to working with both the chair and ranking member to advance those priorities in the new year.”
Another major issue expected to be addressed in the markup is the bipartisan housing proposal announced late last week by Chairman French Hill.
“While we understand the proposal is likely not in its final form and will be subject to amendments, any time Congress returns to regular order and advances legislation on a bipartisan basis, we applaud those efforts,” Stverak said. “We will advocate that credit unions be fully included in solutions to America’s housing crisis—particularly for defense-related credit unions, whose members and military families often struggle to find affordable housing during permanent change-of-station moves. We look forward to working with committee members to help advance this legislation.”
Brad Thaler, head of legislative advocacy at America’s Credit Unions, noted the Senate is expected this week to clear the conference report on the National Defense Authorization Act and send it to the president for his signature.
“As we’ve discussed previously, this was a ‘clean’ NDAA for credit unions—harmful amendments were kept out—but it included very limited financial-services provisions, with several priorities ultimately not making it into the final bill,” Thaler reminded.
Thaler added that this week ACU is also engaging closely with the House Financial Services Committee and its major markup scheduled for Tuesday and Wednesday.
“The committee will consider a number of bills, most notably a bipartisan housing package that has been negotiated by committee Democrats and Republicans,” Thaler said. “We have been working with committee staff ahead of the markup on several issues expected to be taken up.”
Thaler noted that ACU is sending a letter Monday to the House Financial Services Committee, following up on a letter the association—together with their league partners—sent to the Federal Reserve last week regarding the “Common Cents Act” and the issue of the penny.
“We have been actively engaging with the committee on updated draft language to help address the penny issue, and the committee continues to work on the matter,” he said.
“We have been actively engaging with the committee on updated draft language to help address the penny issue, and the committee continues to work on the matter,” he said.