WASHINGTON— NAFCU, the Defense Credit Union Council and CUNA have sent a letter to the chairs and ranking members of the House and Senate Armed Services Committees stressing CU opposition to any plans to allow banks access to military facilities. All three organizations are also actively engaged on Capitol Hill on the issue.
The letter was sent after the House and Senate named members to represent the chambers in discussions to reconcile differences in the 2021 National Defense Authorization Act (NDAA).The House version of the NDAA does not include language providing nominal leases on military bases for banks; the Senate version does. The issue is one credit unions have been fighting in recent congresses.
“Our organizations recognize the important role both credit unions and banks can play for our men and women in the military in the provision of traditional financial services and in protecting our troops from predatory lenders,” the letter reads. “However, we remain concerned that this effort in the FY2021 NDAA to tie the fate of banks on the lease issue to credit unions could ultimately disadvantage credit unions and the men and women of our nation’s armed forces that they serve.”
‘Strong Relationship With Military’
NAFCU President Dan Berger added separately, "Credit unions are committed to providing military members, veterans and their families with safe, affordable financial products and services and they have consistently demonstrated this. Banks, on the other hand, are constantly seeking to drive their profits higher and have well-documented consumer abuses.
"That's why the Department of Defense offers rent to credit unions on military bases at a nominal rate, and why Congress has for years denied bankers' request to operate rent-free on military bases,” continued Berger. “NAFCU will continue to partner with the Defense Credit Union Council to advocate against this provision in the final 2021 NDAA and protect credit unions' strong relationship with the military."