WASHINGTON—The New York Credit Union Association and America’s Credit Unions have responded to statements made by Rep. Claudia Tenney (R-NY) at the American Bankers Association annual conference, where she called for a House Ways and Means Committee hearing on what she described as “inequities and disparities” in credit union regulations.
America’s Credit Unions President/CEO Jim Nussle and New York Credit Union Association President/CEO William Mellin addressed Tenney’s statements, emphasizing the benefits of the credit union difference and positive impact to all consumers in a joint letter sent to the congresswoman.
“We urge you to remember that credit unions delivered an estimated total of $35 billion in financial benefits in the year ending March 2024 for American consumers. These benefits arise from member-ownership and the absence of stockholders demanding a market return on investment, and they take the form of lower loan interest rates, higher savings yields, and fewer/lower fees," the letter reads. "In contrast, the Joint Committee on Taxation (JCT) estimates the value of the credit union federal tax expenditure was $2.6 billion in 2023. The fact is the credit union federal tax exemption remains one of the best returns on the tax expenditure dollar for the federal government.”
The joint letter also notes credit unions are different from banks in that they are:
- Not-for-profit and mutually owned where members have a say in how the credit union is run
- Affordable, because they do not pay profits to investors, rather commit to make financial services more accessible for members
- Member-focused by emphasizing relationship banking and a high level of service
- Safe, as the credit union movement is well capitalized and a much larger share of credit union deposits are covered by federal deposit insurance than bank deposits
- Diverse, as more than half of credit union CEOs are women, while only five percent of banks have a woman CEO, and this commitment to diversity also shapes how they serve their members and communities
- Accessible, as banks of all sizes have closed over 8,600 branches since 2020, while credit unions have opened branches
Nussle and Mellin invited the congresswoman to meet with credit unions, providing additional insight and addressing any “misperceptions.” New York credit unions are also taking grassroots action, ACU said.