WASHINGTON—Credit unions are raising concerns over a recent Small Business Administration (SBA) letter sent to all SBA lenders requesting extensive information on so-called “debanking” practices.
The letter, which Ann Petros, ACU vice president of policy engagement and credit union operations, said credit unions confirmed they have received, seeks detailed historical data on whether members were denied or restricted access to financial services based on political or religious beliefs. Industry leaders say the scope of the request is unclear and could impose a heavy operational burden on credit unions asked to compile years of records.
“We don’t believe debanking is occurring at credit unions,” Petros said. “But we are concerned about the time and resources required to respond.”
Petros said ACU is engaging with the SBA and gathering feedback from members to urge the agency to narrow its request while still meeting the administration’s goals under a recent executive order.