WASHINGTON—Ahead of a House Financial Service Committee hearing to provide oversight of the nation’s largest banks, NAFCU sent a letter noting the fines for consumer abuses assessed to banks, and urged support of the Expanding Financial Access for Underserved Communities Act.
The latter would change to the Federal Credit Union Act that would allow all types of credit unions to add underserved areas to their fields of membership as way to help meet the needs of those not being served by megabanks, according to supporters.
In the letter, Brad Thaler noted a recent report by the Federal Reserve that revealed between 2012-2019 credit unions grew their branch presence in rural areas 2%, while community banks and large banks decreased rural branches 5% and 19%, respectively.
“As Congress grapples with ways to ensure that underserved and unbanked populations have access to affordable financial services, credit unions want to be able to help,” wrote Thaler, NAFCU’s vice president of legislative affairs.
‘Committed to Helping’
Thaler said credit unions have been committed to helping members remain financially stable amid the coronavirus pandemic, with programs ranging from skip-a-pays to personal loans, and were able to provide desperately needed Paycheck Protection Program (PPP) funds to many Main Street businesses that had been previously turned down by larger institutions.
“We urge the Committee to support this draft legislation that would allow all types of credit unions to add underserved areas and make it easier to make critical member business loans to small businesses in those areas,” concluded Thaler.