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NAFCU breaks down facts for lawmakers following bankers' deceptive attacks against CU bill
NAFCU Vice President of Legislative Affairs Brad Thaler Thursday wrote to the House Financial Services Committee to provide the facts in response to bank lobbyists' forceful opposition of legislation to allow credit unions to add underserved areas to their field of membership to lawmakers and misleading attacks against the credit union industry.
"It is unfortunate that bankers continue to attack efforts by credit unions to do more to help the underserved, rather than focusing on cleaning up their own track record," wrote Thaler. “Since the year 2000, banks have had to pay a staggering $240 billion in fines and penalties for violations of various consumer protection laws and other statutes.”
In the letter, Thaler noted the credit union industry's long-standing commitment to providing financial services to rural and underserved areas.
"As large and community banks have been shutting down branches and moving out of these areas, credit unions have been stepping up and expanding their presence to fill the void as they are able," added Thaler.
Thaler went on to set the record straight regarding credit union participation in the Small Business Administration's paycheck protection program (PPP). He noted bankers' duplicitous effort to allege credit unions did not participate in the program, while simultaneously attacking credit unions for making small business loans in the first place.
"Credit unions have stepped up to ensure small businesses in their communities were taken care of during the initial days of the pandemic, and their response through the first two rounds of the PPP was tremendous," explained Thaler. "Despite the uncertainty surrounding the PPP as it launched and the associated risks, credit unions did all they could to ensure their existing and new small business members were taken care of."
To close, Thaler urged the committee to reject the bankers' false narrative and instead offer their support for the Expanding Access for Underserved Communities Act. Read the full rebuttal here.
NAFCU will continue to share credit unions' stories on Capitol Hill, touting how they support their members and communities in times of need.