WASHINGTON—The Defense Credit Union Council (DCUC) says an amendment to the National Defense Authorization Act (NDAA) could be troublesome for credit unions and servicemembers, and this time the issue is not whether banks should be treated equally as credit unions regarding leased space on military bases.
DCUC President and CEO Anthony Hernandez told CUToday.info he has been made aware of new language in the hands of the House Rules Committee for the NDAA that would place restrictions on indirect lending to military members. The California and Nevada CU League apprised DCUC of the issue.
“Taking care of our members and protecting them from well-intended legislation is why we make these recommendations. At the end of the day, we want our members to make safe purchases and protect them from many unintended consequences,” said Hernandez.
Amendment #530, submitted by Rep. Jesus Garcia (D-IL), is what concerns DCUC, stated Hernandez.
‘Well Intended,’ But…
“While the amendment is well intended and seeks to carve out an express exemption for federal credit unions along with transferring MLA rulemaking from the Department of Defense to the CFPB, DCUC remains concerned with restrictions on indirect lending that language in the amendment would bring,” stated Hernandez.
Hernandez said DCUC has been working with its Military Advocacy Committee to craft recommendations—outlined in a letter to Garcia—that would address the language restricting indirect lending to military members.
The Recommendations
Those recommendations are outlined in the letter, which can be accessed in CUToday.info’s The Gov.
“DCUC is thankful for the strong partnership with the California Nevada Credit Union League as well as the staunch members of our Military Advocacy Committee who always work together in crafting better policy alternatives,” Hernandez said. “In fact, one of our members, PenFed, offered outstanding analysis even though PenFed does not make indirect auto loans. This analysis was instrumental in making these recommendations.”
The National Defense Authorization Act, which would amend the Military Lending Act, is on the floor in both the House and Senate and a full vote on both versions is expected next week.