WASHINGTON–The move by Congress to remove language from legislation that would have given banks the same access to military bases as credit unions likely means even more banks will shut own services on those bases, according to the Association of Military Banks of America.
As CUToday.info reported, the Senate version of the National Defense Authorization Act would have provided banks with the same type of free leases on military bases currently in place for many credit unions. But that language was cut when the final version of the NDAA was sent to the president for his signature.
Now, says the AMBA, a trend over the 15 years during which more than 40% of the military bases that previously had banks no longer do is only going to be exacerbated. “The Association of Military Banks of America attributes the departures to the Department of Defense’s unwillingness to treat banks and credit unions equally on military installations,” the organization said in a statement.
Senator is Praised, But…
The bank group thanked Senate Armed Services Committee Chairman James Inhofe (R-HI) for introducing legislation that would require DoD to treat banks and credit unions equally, and added, “Unfortunately, in the face of withering opposition from the credit unions, the Senate language was cut.”
“For the past four years, Senator Inhofe has been an unwavering supporter of the proposition that DoD’s ‘one bank-one credit union’ policy truly does provide our military families the best financial services options to help them deal with their unique financial challenges,” the AMBA stated. “That policy is rapidly becoming a “one credit union monopoly” on our military bases. That’s unfortunate, because the work banks and credit unions do together to serve their military communities really does help our troops and their families understand their finances, prepare for the future, and defend against the predatory financial entities that still target our military.”
Protecting CU ‘Profits’
In passing the final bill, AMBA added, Congress, “when faced with a choice between the welfare of our military families and the protection of credit union profits, Congress regrettably chose the latter.”
The AMBA said that as rents continue to rise with “no relief in sight, more banks will leave military installations. What that means is that more military families, who can’t get the banking services they need on base, will seek financial services off-base, including at ‘predatory’ lenders.”