NAPERVILLE, Ill.– State-chartered credit unions in Illinois will be receiving a credit from the state totaling $1,894,012 in 2022, based on regulatory fees collected last year exceeding expenses, according to the Illinois Credit Union League.
“As a result of the fee credit, credit unions enjoyed a full 4th quarter fee holiday, with a remainder being applied to the March 2022 quarterly billing,” the league reported. “The amount of each regulatory fee credit is based on the fee paid by individual credit unions as a proportion of the aggregate total of fees collected by the state.”
The credit is based upon legislation enacted to implement the court-approved settlement of the regulatory fee case filed by the Illinois league against the state in 2004. At the time, Gov. Rod Blagojevich had implemented a credit union regulatory fee escalation, resulting in excess funds of over $2 million, the league explained. Those funds were then swept into the General Revenue Fund to cover other costs to balance the budget.
‘Improper Fee Escalation’
The league noted it filed the lawsuit against the state to stop the “improper fee escalation scheme.”
Under the terms of the settlement, credit unions received a cash payment of approximately $6.2 million in June 2009. In addition, according to the ICUL, the settlement also accomplished two other goals: it codified a rate reduction in regulatory fees on a going forward basis commencing Jan. 1, 2009, and it reduced the Credit Union Fund margin that triggers a credit back to credit unions.
Including the reduction in regulatory fees of nearly $9.5 million, the league said the prosecution it initiated and the resulting settlement have returned over $25 million in total to Illinois state-chartered credit unions.
‘Extraordinarily Pleased’
“We’re extraordinarily pleased by the size of the 2021 regulatory fee credit that not only gave credit unions a full break on their fourth quarter fee, but also impacts the first quarter of 2022,” said EVP/COO Patrick Basler. “It demonstrates the importance of advocacy in a real, measurable way. The original advocacy win continues to benefit credit unions by bringing them financial relief as they work to rise beyond the unprecedented challenges of the past couple of years. The ICUL team fights hard to pass favorable bills and squash negative bills, but no other trade association puts money back into the pockets of their members. We’re very proud of this victory, which would not have happened without the joined forces of credit unions through league affiliation.”