CUs FIGHT BACK!

Credit Unions Not Standing Still

With aggressive banker attacks growing at both the state and federal level, CUNA and the leagues are being forced to flex the credit unions' political muscle once again. Ever since the Campaign for Consumer Choice worked to pass HR 1151, we have endeavored to build a political and grassroots program to meet the challenges of the future.

• More than 50 million credit union members have been identified by state and federal legislative districts through Project Zip Code. These numbers are being used as a powerful tool to demonstrate to policymakers the strength of the credit union movement.
• CULAC and many of the state PACs are among the most active in the country and contribute to hundreds of credit union friendly candidates. CULAC is now the fifth largest trade association PAC in the country.
• Political activism has increased significantly over the past six years with more and more credit unions getting directly involved in the political process by volunteering in campaigns, attending campaign schools and attending political fundraisers.
• On the grassroots front, hundreds of credit union staff and CUNA lobbyists have "Hiked the Hill" to increase credit union visibility and establish relationships on Capitol Hill. Many states are expanding the number of visits to their state capitols as well.
• Through Project Differentiation, credit unions are telling their stories to policymakers about the uniqueness of credit unions in the financial services marketplace, and the good that credit unions do for their members and communities.

CUNA and the leagues are not just weathering the attacks. We are fighting back.

• The Leagues, with assistance from CUNA, have defeated, or are working to defeat, banker attack proposals in more than thirteen states. We have been successful in deterring all efforts to tax credit unions so far.
• Since Chairman Thomas of the Ways and Means Committee suggested an "examination" of the federal tax exemption, CUNA and League lobbyists have contacted the House Leadership and all Members of the House Ways and Means Committee. Commitments not to support taxing credit unions have been received from most members of the Committee.
• Dan Mica has sent letters to every Member of Congress, saying that the credit unions will fight vigorously to protect their federal tax exemption.
• Dan Mica publicly admonished FDIC Chairman Powell's public comments in support of taxing credit unions. He said it was inappropriate for a federal bank regulator (and former banker) to be making recommendations about the tax exemption.
• Credit unions have made hundreds of contacts by email, phone and fax with federal legislators, and spent the recent Congressional recess making visits with Members back in their home districts. CUNA, the Leagues and credit unions have also been working to obtain cosponsors for the Credit Union Regulatory Improvements Act.
• Secretary of the Treasury John Snow has publicly affirmed that the Bush Administration also supports the credit union tax exemption.
• CUNA has obtained a letter in support of the credit union tax exemption from President George Bush.
• CUNA has obtained a letter in support of the credit union tax exemption from Presidential Candidate John Kerry.
• CUNA and the Leagues are continuing to conduct research at the federal level and in many states. The research clearly indicates that consumer and the public are on the credit union side.
• CUNA and the Leagues are preparing further legislative, grassroots and public relations programs to deal with the ongoing threat from the bankers.

Not only are we protecting credit unions, we continue to seek proactive credit union legislation so credit unions can meet their members' 21st century needs.

Despite opposition from the bankers, we have:

• Conducted a successful grassroots and lobbying program to pass the Regulatory Relief Act--which reduces some regulatory burdens on credit unions--by a very wide margin in the House.
• Secured the introduction of the Credit Union Regulatory Improvements Act (CURIA), a bill to make further changes to credit union regulations so that credit unions can operate more effectively and provide better service to their members.
• Lobbied NCUA and the Small Business Administration to make regulatory changes allowing for more small business lending to be handled by credit unions.
• Lobbied NCUA to simplify the Field of Membership regulations and processes.

At the state level, the Leagues have successfully:

• Passed a public funds deposit bill in Oregon.
• Passed a credit union modernization bill in Michigan
• Exposed widespread tax avoidance practices by bankers in Wisconsin.
• Undermined a public relations campaign by the Kentucky Bankers Association designed to influence the legislature to tax credit unions.

As noted above, the public is clearly on the credit union side. In the past 19 American Banker/Gallup Poll surveys, consumers have been more satisfied with credit unions than with banks. Our own research shows that when presented with the banks' and credit unions' arguments on credit union taxation, two=thirds agree with credit unions.

Despite all these efforts the banking industry continues to press. Their high paid lobbyists are combing state and federal agencies and legislatures in attempt to convince lawmakers to limit credit unions' ability to serve their members and to tax them.

We can’t outspend the bankers but we can out do the bankers. You the credit union professional, volunteer, and member, can tell your story to lawmakers. And you can cast your votes for those who support credit unions.

Copyright © 2008 - Credit Union National Association, Inc.