WASHINGTON—NAFCU and CUNA applauded the introduction of a new bill that would allow credit unions of all charter types to add underserved areas to their fields of membership.
The legislation was introduced Tuesday by Reps. Tim Ryan (D-OH) and Donald Norcross (D-NJ), with Rep. Ann Kirkpatrick (R-AZ) as an original cosponsor.
“We are grateful for Representatives Ryan’s, Norcross’ and Kirkpatrick’s leadership in seeking to remove barriers that limit consumers' access to essential financial services," said NAFCU President and CEO Dan Berger. “NAFCU applauds this long-overdue move to allow credit unions to reach out to consumers who need their services the most.”
Ryan Donovan, CUNA chief advocacy officer said, "We've been working with these offices over the last several weeks to make sure the language they introduce achieves their objectives. We appreciate the support -- it is further evidence that congress is interested in consumers having more access to credit unions."
Currently, only credit unions with multiple-group charters are able to add underserved areas to their fields of membership.
“This bill, the Financial Services for the Underserved Act, would allow other types of credit unions to seek the NCUA board’s approval to add such areas. The legislation would require them to have a method for servicing those new underserved areas within 24 months,” NAFCU explained.
NAFCU said it has long advocated allowing credit unions more flexibility in reaching out to underserved areas and for the modernization of field-of-membership requirements. NCUA currently has a NAFCU-backed field of membership proposed rule pending before the board.