WASHINGTON—NAFCU and CUNA have sent letters showing support for HR5541, a bill to allow federal credit unions to provide services to more underserved areas.
CUNA President and CEO Jim Nussle Thursday sent a letter to legislators who recently introduced the bill. NAFCU sent a letter to House leaders.
Nussle, in his letter to Reps. Tim Ryan (D-OH), Donald Norcross (D-NJ) and Ann Kirkpatrick (D-AZ), sponsors of the bill, stated that the legislation—the Financial Services for the Underserved Act—would help consumers who have trouble accessing mainstream financial services.
The bill would amend the Federal Credit Union Act to allow federal credit unions that are properly capitalized to apply to the NCUA to add underserved areas, based on census tracts, to their fields of membership.
“Your legislation would help credit unions serve the unbanked and underbanked by eliminating the requirement that credit unions must have a brick and mortar branch in a rural or underserved area in order to add the area to their field of membership,” wrote Nussle. “With today’s technology, having a physical branch in a community is not the only way a member can be served by their credit unions.”
As the legislation moves through Congress, Nussle urged the legislators to clarify that a termination provision in one section does not supersede a provision guaranteeing that so
meone who becomes a member under the exception does not lose membership status if the credit union later loses its ability to serve the approved area.
“CUNA and the Ohio Credit Union League have been working with Rep. Ryan over the last several weeks to ensure the legislation achieves his objectives,” commented Ryan Donovan, CUNA’s Chief Advocacy Officer. “We appreciate the support—it is further evidence that Congress is interested in consumers having more access to credit unions.”
NAFCU Executive Vice President and General Counsel Carrie Hunt sent a letter to House speaker Paul Ryan and House Minority Leader Nancy Pelosi expressing NAFCU’s support for the Act.
In the letter, Hunt wrote, “NAFCU is urging your support of this legislation which would go a long way to remove the barriers that limit consumers’ access to essential financial services . . . This legislation will allow all credit unions to petition the National Credit Union Administration to allow them to add underserved areas to their existing field of membership. Currently, only multiple-common-bond credit unions have this authority.”