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HSFC to markup CUGMA and Fair Hiring in Banking Act
The House Financial Services Committee tomorrow will hold a hearing to markup several important bills, including the Credit Union Governance Modernization Act (CUGMA) – NAFCU-backed legislation that would advance existing language under the Federal Credit Union (FCU) Act related to expulsion in order to keep credit unions, their members, and staff safe from illicit behavior.
“NAFCU commends the House Financial Services Committee for taking the next steps on the Credit Union Governance Modernization Act, an important piece of legislation that will keep credit unions and their members protected from abusive and disruptive behavior,” commented NAFCU Vice President of Legislative Affairs Brad Thaler. “We have long advocated on behalf of this bill and worked diligently with Representatives Tom Emmer, Ed Perlmutter, and others to garner support in Congress.”
The legislation would allow credit unions to adopt a streamlined expulsion policy to remove members who engage in unlawful behavior. It would also allow for an appeal process that would provide due process for the accused member. The association has consistently championed for less burdensome expulsion regulations to make it easier for credit unions to expel members who are engaging in fraudulent or disruptive activities or conducting physical or verbal abuse.
“Safeguarding credit unions and their staff from illegal or malicious activity is essential and allows credit unions to better serve their members and local communities. NAFCU remains supportive of the critical reforms included in this bill, and we will continue to work with Congress to get this through to the finish line,” stated Thaler.
The Committee will also markup the House version of the Fair Hiring in Banking Act, a bill originally introduced by Senator Joe Manchin, D-W.Va. and led in the House by Rep. Joyce Beatty D-OH., that would replace a lifetime ban for those with disqualifying convictions to work in the banking sector and create an exception for criminal acts committed before the age of 21.
Of note, the Committee excluded the Overdraft Protection Act of 2021 and a proposed bill to grant NCUA vendor examination authority from its markup agenda, a positive step for the credit union industry. NAFCU has expressed opposition against the overdraft legislation, highlighting its misguided approach as well as its negative impact on credit unions that currently have courtesy pay programs in place. The association has also voiced concerns around granting the NCUA additional vendor examination authority, which would deviate the agency’s focus from credit unions.
NAFCU will tune into the markup hearing and report back any important developments to credit unions.