WASHINGTON—Saying it is responding to the “forceful opposition” by bank lobbyists to legislation that would allow credit unions to add underserved areas to their fields of membership, NAFCU has sent a letter to the House Financial Services Committee over what it has termed “misleading” attacks.
"It is unfortunate that bankers continue to attack efforts by credit unions to do more to help the underserved, rather than focusing on cleaning up their own track record," wrote Vice President of Legislative Affairs Brad Thaler. “Since the year 2000, banks have had to pay a staggering $240 billion in fines and penalties for violations of various consumer protection laws and other statutes.”
In the letter, Thaler went on to note the credit union industry's long-standing commitment to providing financial services to rural and underserved areas.
"As large and community banks have been shutting down branches and moving out of these areas, credit unions have been stepping up and expanding their presence to fill the void as they are able," added Thaler.
A ‘Duplicitous Effort’
In addition, Thaler addressed credit union participation in the Small Business Administration's Paycheck Protection Program (PPP), writing that the “bankers' duplicitous effort” to allege credit unions did not participate in the program, while simultaneously attacking credit unions for making small business loans in the first place.
"Credit unions have stepped up to ensure small businesses in their communities were taken care of during the initial days of the pandemic, and their response through the first two rounds of the PPP was tremendous," stated Thaler. "Despite the uncertainty surrounding the PPP as it launched and the associated risks, credit unions did all they could to ensure their existing and new small business members were taken care of."
To close, Thaler urged the committee to reject the bankers' “false narrative” and instead offer their support for the Expanding Access for Underserved Communities Act.