WASHINGTON—Both credit union trade groups are stepping up pressure on a congressional conference committee to pass the FY 2020 National Defense Authorization Act (NDAA) without language that would give banks access to military bases.
On Friday, CUNA issued an action alert urging credit unions to contact their members of Congress about what the trade group called a “harmful provision for credit unions.”
As CUToday.info has reported, Section 2821 of the Senate-passed version of the NDAA includes the language giving banks the same access as credit unions when it comes to operating facilities on military bases. The House version of the legislation does not include the language, A conference committee is not hammering out differences between the bills.
“This provision puts the financial health of our military members is in jeopardy, which is why we need credit union leaders to contact their member of Congress now and tell them to reject Section 2821 of the Senate NDAA,” said CUNA President/CEO Jim Nussle in a statement. “If it isn't removed from the bill, banks like Wells Fargo and Bank of America will have easier access to set up shop on bases around the world. We have seen how these banks have treated their customers over the years. There is no good reason to make it easier for them to engage our servicemen and women. We have a limited window - now is the time to for action.”
NAFCU Effort
Separately, NAFCU has sent a letter to Congress that highlights what it calls the big banks' track record of consumer abuses and record-breaking profits.
In its letter, NAFCU Vice President of Legislative Affairs Brad Thaler also urges removal of the provision, noting the DoD has used its discretionary authority to lease space on military bases at a nominal rate to credit unions because of the value they bring to military members, in addition to the laws and regulations they are required to meet. Speier's letter also highlighted current laws that allow banks to seek waivers for leases on military installations. However, if enacted, Thaler warned that the provision could create consequences.
"…[W]e remain concerned that Section 2821's intent to tie the fate of banks on the lease issue to credit unions and their good work misses the mark, and would ultimately disadvantage credit unions," Thaler said. "Rather than granting nominal leases to banks and credit unions, the DoD could very well decide to stop granting nominal leases altogether. We do not want to subject the ability of defense credit unions to serve their members to the political winds surrounding big bank consumer abuses."
As CUToday.info reported here, members of the conference committee have now been named.