WASHINGTON—Sen. Denny Heck (D-WA), a CU member and former CU employee, said he wonders if there is something stopping people from turning to credit unions.
Heck, a strong supporter of credit unions, asked that question of attendees at CUNA’s GAC, and then said, “Have we made it too hard to charter credit unions? Have we made it too difficult for credit unions to offer products that consumers need, especially in times of financial stress? Have we not leveled the playing field so credit unions can compete against banks—and now the non-bank lenders too?”
Heck said he doesn’t have all the answers and solutions to all those questions but said he will continue to work to address them.
“I spent a lot days last year going from credit union to credit union and I fully understand the impact and burden from the overly restrictive and cumbersome regulations that we need to now modernize and streamline,” he said.
Heck then paused, and asked the audience to “take a deep breath.” While saying he understands the threat and impact the CFPB brings to credit unions, Heck also said the Bureau is in place to keep all lenders on equal footing.
Heck said he is worried that Washington has made it very difficult to successfully run a credit union, and wondered about the future of an industry whose role is necessary in each community.
“Is the dream of community self-reliance still alive, or are we in Washington snuffing that out?” he asked. “You have to tell your story. Tap into the spirit of the 1930s, when (CU pioneer) Louise Herring started what would be the founding of thousands if credit unions. If you can do that, the next steps (from Capitol Hill) will come more easily and then every financial institution can have its place in the sun.”