WASHINGTON, D.C (June 24, 2025) |
The Defense Credit Union Council (DCUC), in collaboration with the California Credit Union League (CCUL), the African-American Credit Union Coalition (AACUC), and America’s Credit Unions (ACU), has sent a joint letter to Assemblymember Mia Bonta expressing strong opposition to California Assembly Bill 801 (AB 801) – the California Community Reinvestment Act (CRA).
While in support of the goal to serve underserved communities, the organizations argue that AB 801 imposes unnecessary, burdensome regulations on credit unions, which already excel in this mission without a state mandate.
“Credit unions are financial cooperatives that exist solely to provide pooled funds for member owners and should be recognized as the good actors they are. Due to their unique structure, credit unions don’t need a push to serve people of modest means—doing so is embedded in the mission of all credit unions. The trade associations listed above firmly believe that subjecting credit unions to CRA is unnecessary and will impede the credit union’s natural ability to serve the underserved. For these reasons, we must oppose AB 801.”
The coalition of credit union advocates outlined key concerns with AB 801, including:
Redundant Regulation: Credit unions were intentionally excluded from the federal Community Reinvestment Act (CRA) and already outperform banks in lending to underserved communities.
Higher Costs, Lower Impact: AB 801 expands CRA obligations, adding extensive reporting and examination requirements. These demands divert resources away from affordable lending and community programs.
Legal Restrictions Ignored: The bill fails to adequately account for credit unions’ field-of membership rules and federal lending caps, which limit how and to whom they can lend— making full compliance with CRA standards problematic.
Strong Existing Oversight: Credit unions already comply with federal fair lending laws and are subject to rigorous supervision. Many also hold federal designations that affirm their community impact:
- 19 are Community Development Financial Institutions (CDFIs)
- 37 have Low-Income Designation
- 20 are recognized as Minority Depository Institutions (MDIs)
DCUC, alongside its industry partners, urges lawmakers to reject AB 801 and instead support solutions that enhance—not hinder—the ability of credit unions to serve California’s diverse and underserved communities.