WASHINGTON—Citing CFPB Director Rohit Chopra’s recent comments regarding a proposed expansion of deposit insurance coverage, the Defense Credit Union Council (DCUC) is urging the CFPB’s leader not to conduct these discussions in a “vacuum” without credit union input.
Chopra called for deposit insurance reform at a closed-door meeting of the FDIC board last week.
In a letter to Chopra, DCUC emphasized the importance of maintaining historical parity between credit unions and banks in deposit insurance frameworks.
Jason Stverak, DCUC Chief Advocacy Officer, highlighted the critical role of the National Credit Union Share Insurance Fund, established in 1970 and modeled after the Federal Deposit Insurance Corporation (FDIC), in safeguarding credit union members’ deposits.
“The NCUSIF has always mirrored FDIC insurance coverage levels, offering consumers equal protection regardless of their chosen financial institution,” wrote Stverak. “This parity has been essential to maintaining public confidence in credit unions, particularly during times of economic uncertainty.”
DCUC’s letter highlighted priorities for ensuring equity in the proposed changes:
- Parity in Coverage Levels: Deposit insurance coverage under the NCUSIF and FDIC has consistently been identical, ensuring equal consumer protection. This standard must continue in any expanded coverage framework.
- Flexibility in Implementation: Credit unions, especially smaller institutions, often operate with leaner resources than banks. Policies must allow credit unions to adapt to expanded coverage requirements without undue burden.
- Acknowledgment of Cooperative Structure: As member-owned, not-for-profit entities, credit unions operate under a unique cooperative model. Regulatory changes must account for this distinction to avoid creating competitive disadvantages.
- DCUC also stressed the resilience of the NCUSIF and FDIC during economic challenges such as the 2008 financial crisis and the COVID-19 pandemic, further highlighting the importance of equal treatment in any future deposit insurance expansion.
More Issues Addressed
Separately, DCUC sent letters to Congressional leaders on financial policy issues impacting credit unions:
- Senator Bernie Sanders, expressing concerns about his proposal to impose a 10% cap on credit card interest rates. DCUC emphasized that while the proposal is well-intentioned, it would likely have unintended consequences, including reduced access to credit for underserved communities, diminished flexibility for credit unions, and a contraction of affordable financial services. DCUC’s letter highlighted the disproportionate impact such a cap would have on credit unions and their members, particularly those in low-income and military communities.
- Martin Heinrich, chairman, and David Schweikert, vice-chairman, of the Joint Economic Committee, ahead of the committee’s hearing titled “Building on the Success of the TCJA: The 2025 Tax Policy Debate.” In the letter, DCUC emphasized the importance of preserving the tax-exempt status of credit unions, citing their unique not-for-profit cooperative structure and the significant economic and social benefits they deliver to members and communities across the country. “The tax-exempt status of credit unions is vital to their mission of people helping people, especially during times of economic uncertainty,” wrote Stverak. “This status enables credit unions to provide affordable credit, financial literacy programs, and tailored services that support low-income, underserved, and military communities.”