Letters to Reps Brown-Waite, Baker, Hooley and Bachus Regarding Hurricane Check Cashing Relief Act of 2005
October 3, 2005
The Honorable Ginny Brown-Waite
414 Cannon House Office Building
Washington, DC 20515
Dear Representative Brown-Waite:
On behalf of the Credit Union National Association (CUNA), which represents nearly 9,000 credit unions and their 87 million credit union members, I would like to commend you for your leadership in your efforts to address the needs of financial institutions in their efforts to help in the recovery for the victims of Hurricane Katrina.
As you know, many credit unions have voluntarily been reaching out to the victims of Hurricane Katrina, and assisting them with financial transactions such as cashing checks, knowing that they may be doing so at a loss. Your legislation, The Hurricane Check Cashing Relief Act of 2005, which seeks to provide indemnity for federally insured financial institutions that cash fraudulent or non-sufficient fund checks for Katrina victims up to $2000.00 would further facilitate the credit union industry's efforts to provide financial services to those who need it the most in this time of tragedy.
CUNA supports efforts to consider reasonable indemnification for institutions cashing other items ostensibly presented by individuals who resided in the affected areas, including those who evacuated to other locations, which subsequently are not valid. While we agree that financial institution efforts to verify the presenter's identity are appropriate, we do not believe such steps should be unduly burdensome on financial institutions.
Thank you for taking the initiative to protect financial institutions from fraud while assisting victims of Hurricane Katrina.
Please feel free to call on me or my staff if you have any questions or if we can be of further assistance in this important effort.
Daniel A. Mica
President & CEO
Credit Union National Association