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HFSC passes the Close the ILC Loophole Act to help protect CUs
The House Financial Services Committee passed the Close the Industrial Loan Company (ILC) Loophole Act with a 28-25 vote on Wednesday afternoon – bipartisan legislation that NAFCU has fervently supported since it was introduced by Reps. Chuy Garcia, D-Ill., and Lance Gooden, R-Texas. NAFCU joined with other trade associations Wednesday evening expressing support for the bill’s passage – a clear win for the credit union industry.
Prior to the Committee’s markup earlier this week, NAFCU’s Vice President of Legislative Affairs Brad Thaler wrote a letter expressing NAFCU’s ongoing support for this legislation, as it would help stop ILCs from taking advantage of the current ILC charter that helps them gain more access to the U.S. financial system. The association also joined a coalition letter to the Committee from various financial organizations and consumer groups in support of the bill.
NAFCU has previously joined with other trades and separately encouraged Congress to close the ILC loophole in current law and stop large commercial companies from taking advantage of the ILC charter to gain access to the financial system by passing this necessary legislation. In a previous letter, Thaler explained this legislation as a "comprehensive solution" to closing the ILC loophole once and for all.
NAFCU will continue to monitor the progress of the bill and will keep credit unions informed of any developments.