TAKE ACTION: Tell House to Reject Misguided Credit Union Expansion Bill
June 9, 2022
ABA is urging bankers to take renewed action to prevent a credit union charter enhancement bill from coming to the floor for a vote. The House plans to vote next week on H.R. 2543, the Financial Services Racial Equity, Inclusion and Economic Justice Act. At present, H.R. 7003, which would expand credit unions’ fields of membership and commercial lending authority, would be included as part of that larger legislative package.
H.R. 7003 is a self-serving piece of credit union legislation masquerading as a financial inclusion initiative, according to ABA. The bill does not include “strong and clear accountability mechanisms” to ensure credit unions’ expanded powers would be used to serve underserved communities, ABA said, noting that any “sincere effort” to improve financial inclusion through credit unions should start by subjecting them to Community Reinvestment Act requirements.
“Expanding credit unions’ reach without first evaluating, through metrics applicable to all other insured depository institutions, whether credit unions are in fact increasing access to safe and affordable financial services to underserved communities across America, is inappropriate,” ABA said. Contact your lawmakers now.