SACRAMENTO, Calif.–A bill in this state’s Assembly that was strongly opposed by credit unions has been defeated after CUs sent more than 10,000 messages to their state representatives to express their opposition.
Assembly Bill 2501, the COVID-19 Homeowner, Tenant and Consumer Relief Law of 2020, would have required credit unions to offer inflexible forbearances on both loan types until Jan. 1, 2022. A coalition of financial services trade groups, including the California and Nevada leagues and CUNA, had been fighting the bill.
Prior to the bill’s defeat, the leagues had said of the bill, “It would significantly draw down levels of capital, preventing credit unions from serving their communities and potentially causing layoffs or even mergers. We would not ask you to act immediately if this wasn’t urgent.”
The legislation had been sponsored by Assemblywoman Monique Limon (D-Santa Barbara).
A Special ‘THANK YOU’
California’s credit unions are now celebrating the fact the bill has been defeated in the Assembly and will not be advancing to the state senate. The league reported the bill was not brought up for reconsideration on the California Assembly floor last week, meaning it will fail to meet the house-of-origin deadline.
“A special THANK YOU goes out to everyone who took the time to make this happen and give credit where credit is due by recognizing the phenomenal outreach of credit union staff in contacting state assemblymembers,” the leagues stated on its website. “Their urgent action mattered when it was needed the most. The California Credit Union League could not have accomplished this great victory without this. From the calls made to key legislators and staff, to the more than 10,400 messages sent through Connect For The Cause, credit unions did an amazing job.”
Consistent Messages
The leagues said credit unions in the state had been consistently supplying data every week to educate state legislators on the financial relief credit unions are extending to members and communities during this economic downturn.
“Our work is not finished,” said Leagues President and CEO Diana Dykstra in a statement on its website. “It is possible similar legislation could resurface in the California State Legislature later this year, so please stand by.”
To generate the more than 10,000 messages sent, the leagues said staff and leaders from 276 credit unions in California sent messages telling legislators “NO on AB 2501” and “explaining the gravity of the situation.”
Out of 10,426 messages, 10,323 were initiated by credit unions headquartered in California, and 103 by those based outside of the state with local California branches, the leagues said.
Assistance Update
Separately, the California and Nevada Credit Union Leagues compiled information showing from late March to mid-June credit unions in both states have accomplished the following for their members:
- Nearly 584,000 members have been provided financial relief.
- Over 573,000 extensions made on nearly $15.7 billion in member loans.
- More than $75 million provided in emergency loans to members.
- Over 2.9 million fees waived for members.
- Nearly $1.4 billion employee/business loans made via the Paycheck Protection Program (PPP) loans from the Small Business Administration and Treasury Department’s federal relief program.