House reaches defense deal in favor of CUs
WASHINGTON, DC (July 26, 2018) — The House voted in favor of a conference report that strikes a provision that is harmful to military credit unions under the 2019 National Defense Authorization Act (NDAA). Credit unions will continue to be able to meet the financial services needs of America’s servicemen and women.
CUNA wrote a letter opposing the provision as it would ultimately hurt credit unions while granting access to banks at the same bases.
“We thank House leadership for keeping this ambiguous language out of the NDAA,” said CUNA President/CEO Jim Nussle. “Some of the largest credit unions in the world serve primarily veterans, members of the U.S. military, and their families. It is critical that we continue our mission of providing affordable financial services to meet the needs of military members.”
Under Section 124 of the Federal Credit Union Act, on-base credit unions are exempt from costs related to leases, utilities and services for the furnishing of office space and land. Section 2808 of the House version of NDAA was designed to treat Federal and State chartered insured depository institutions equally, but the legislative definition excluded credit unions.
“We look forward to working with the Armed Services committees in the House and Senate in restoring the overall Military Banking Program so that Defense Credit Unions can continue to serve our military members and their families while protecting them from predatory lending practices outside the gate,” said Defense Credit Union Council President/CEO Anthony Hernandez.
Under the Federal Credit Union Act, on-base credit unions are exempt from the costs associated with leases, utilities and services – which includes the furnishing of office space and/or land and ATM placement.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 120 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.