Thu, Feb 22, 2018
Credit unions have been, and will continue to be, the best avenue for Americans to gain access to the financial system, CUNA and NAFCU wrote to Sen. Orrin Hatch (R-Utah) Wednesday. The letter was sent in response to a letter filled with credit union misrepresentations sent by Utah bankers to Hatch.
“Banking lobbyists would like the tax status to be limited based on the products or services credit unions offer, the size of credit unions individually and as a sector of the financial services industry, their efforts to support their community and raise overall awareness, and other factors,” the letter reads. “But these factors have nothing to do with why Congress originally conveyed the tax status, nor why it continues to be extended. The fact is credit unions’ structure has not changed and they continue to fulfill their mission.”
The letter also highlights:
- How credit unions continue to fulfill their statutory mission to promote thrift and provide access to credit for provident purposes, the reason for the tax status;
- How the not-for-profit cooperative structure benefits credit union members and the financial marketplace as a whole;
- That credit union spending, including executive compensation and advertising budgets, are carefully watched by boards of directors of credit unions and NCUA.
“Finally, CUNA and NAFCU know that if the banking trade associations would partner with us on creating meaningful regulatory relief for the entire financial services industry, rather than attacking us in frivolous letters, we could truly advance access for financial services to all Americans,” the letter reads.
CUNA President/CEO Jim Nussle previously wrote to Hatch in response to a letter Hatch sent NCUA on credit unions, outlining how credit unions have evolved to keep pace with consumer needs and the financial marketplace.
Source: CUNA News