WASHINGTON–There are federal charters, state charters and now—for first time since 1964—a District of Columbia charters for credit unions.
After passage by the D.C. Council earlier this year, the Credit Union Act of 2019 is now officially law. The Maryland and DC Credit Union Association reported that pending promulgation of regulations, the Act will grant credit unions based in the District of Columbia the option of applying for a charter from the DC Department of Insurance, Securities and Banking (DISB).
The MD|DCCUA said it has been strongly advocating for the legislation and will continue to work with the DC Council and DISB as the Act moves toward implementation.
“This is a win for credit unions giving them an additional option to consider when determining how best to serve their members," said MD|DC Credit Union Association President/CEO John Bratsakis. "The Act provides credit unions headquartered in D.C. with more flexibility when it comes to examinations, field of membership, loans and low-income designations. It gives credit unions another arrow in their quiver to deploy. We will continue to work with DISB and the DC Council during the rule making process to ensure that regulations serve in the best interest of credit union members.”
Long-Time Advocacy
The Credit Union Act of 2019 authorizes DISB to charter, supervise, regulate, examine and exercise other powers related to the operation of credit unions in the District.
Since 1964, all D.C. credit unions have been federally chartered under the Federal Credit Union Act by NCUA.
The MD|DC Credit Union Association said it has been working on bringing a DC charter back since 2001, and had increased its advocacy on the issue over the past several years. Most recently DISB, in partnership with the Association, hosted a roundtable in January giving the department and D.C. credit unions the opportunity for an open dialogue, the association said.
The MD|DC Credit Union Association has prepared a chart comparing the provisions of the Federal Credit Union Act with the D.C. Credit Union Act, which can be viewed here.