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NAFCU, trades reiterate opposition to changes in military base leases
As Congress shifts focus to marking up the National Defense Authorization Act (NDAA) this week, NAFCU, the Defense Credit Union Council, and CUNA sent a letter to leaders of the House Armed Services Committee to reiterate their opposition to any changes to allowing banks to operate rent-free on military bases.
A Department of Defense (DoD) report found “military personnel and civilians increasingly have the option of obtaining banking services online and/or off-base” and that they are fully able to “engage in a wide range of financial services transactions with any number of financial services providers they choose at almost any time, regardless of where either party may be physically located.”
“We see no need to consume the committee’s time in developing a legislative formula to impose on installation commanders who are busy enough preparing for combat operations,” the group wrote. “We are concerned that this effort by “for-profit” banks would amount to Congressional micromanagement of individual base commanders to solve a problem that the DoD has confirmed does not exist. This is why America’s credit unions continue to earn their nominal lease structure by providing safe, sound, and available financial products and services.”
“…Defense credit unions do not fear competition from banks, especially on base, as there can be an important role for both institutions to play. But credit unions simply put our members first—ahead of profit. If banks want to be treated like credit unions, they need to start acting like them. Equal treatment needs to focus on service, structure, and ethos, not increasing the bank’s profit sustainability. Our service members deserve more!”
The credit union trades have long fought to protect credit union nominal leases on military installations and oppose efforts to allow all banks to operate rent-free on military bases under the NDAA.
NAFCU will monitor the committees’ discussions on the legislation and keep credit unions informed of any developments.