WASHINGTON–A provision that CUNA said would have put “credit unions at a disadvantage” when serving members on military bases has been struck from legislation currently before Congress.
As a result, credit unions will continue to be able to meet the financial services needs of America's servicemen and women on military installations as language that might have changed that has been removed from the 2019 National Defense Authorization Act (NDAA), the trade association said.
Section 2808 of the House version of NDAA was designed to treat Federal and State chartered insured depository institutions equally, but the legislative definition excluded credit unions, CUNA noted.
"While we believe this was an unintended drafting error, the blanketed term may have put hundreds of military credit unions in jeopardy," said CUNA President/CEO Jim Nussle in a statement. "Because of their cooperative, not-for-profit structure, credit unions should continue to receive unrestrained but discretionary access to military installations."
‘Satisfied With Decision’
Under the Federal Credit Union Act, on-base credit unions are exempt from the costs associated with leases, utilities and services – which includes the furnishing of office space and/or land and ATM placement.
"We are satisfied with the decision of the committee and thank the members of the conference committee for listening to our concerns," said Defense Credit Union Council President/CEO Anthony Hernandez in a statement. "As we have stated, this is a complex issue and there are a number of affected parties who have not had adequate time to study the amendment's impact and potential unintended consequences. We look forward to working with the Armed Services committees in the House and Senate in preserving the overall Military Banking Program so that Defense Credit Unions can continue to serve our military members and their families while protecting them from predatory lending practices outside the gate."
CUNA had earlier written a letter to Congress in which it opposed the provision.