WASHINGTON—Concerns over the circumstances of lower-income Americans in responding to the coronavirus-related economic slowdown was a key theme during a Senate Banking Committee hearing here, according to NAFCU.
The association noted much of the hearing's discussion focused on the prospects of supplying additional aid to individuals, including housing assistance, economic impact payments (EIP) and enhanced unemployment. Witnesses also noted the prevalence of predatory lending amid the pandemic.
When discussing financial exploitation and abuse circumstances surrounding the pandemic, two witnesses agreed that people in lower income areas remain desperate for funds to pay for rent, mortgages, and other basic necessities and have limited options other than predatory lenders.
As CUToday.info reported, NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee ahead of the hearing to highlight several tools and flexibilities that would allow credit unions to continue to support their members and communities, including one such flexibility under the Federal Credit Union Act to allow credit unions to add underserved areas to their field of membership.
In addition, Sen. Bill Hagerty (R-TN) noted that in the last relief bill Congress allocated funding for minority depository institutions and community development financial institutions to help those who may be disproportionately affected by the pandemic. Hagerty urged that these funds must be spent appropriately.