Joint Advocacy Efforts to Save the Credit Union System

The National Council of Firefighter Credit Unions (NCOFCU) participated in the DCUC advocacy meeting. It was decided that we would assist in the advocacy efforts to maintain the credit union tax exemption and ensure the future of NCUA. 

WASHINGTON—America’s Credit Unions and the Defense Credit Union Council each held meetings Monday to discuss the state of the credit union system following the shake-up at NCUA.

The two meetings, both held at 1 p.m. ET, approached the topic in very different ways.

As CUToday.info reported, President Trump removed NCUA Democratic Board Members Todd Harper and Tanya Otsuka last week, which sparked a great deal of concern among credit unions about the future of NCUA and the movement.

The Defense Credit Union Council outlined action steps that need to be taken to make sure credit unions prosper in this period of uncertainty, with much of that centering on preserving credit unions’ tax-exempt status.

America’s Credit Unions, during its Industry Update webinar, covered a wide range of topics, largely to answer credit union questions. ACU invited all of the leagues and its credit union members to attend.

ACU spoke about, and addressed attendee questions, on a wide range of topics, including the changes at NCUA and what may be expected from the agency going forward—the CU tax fight, state chartering during this period of uncertainty at NCUA, interchange, overdraft legislation and more. It also provided an update on its efforts to preserve the credit union tax exemption.

Anthony Hernandez

Noting the primary matter in front of CUs today is the tax fight, DCUC Chef Advocacy Officer Jason Stverak told CUToday.info it is important that, “All credit union leaders, all credit union associations and all credit union strategic partners come together to ensure we are all working together—communicating, cooperating, collaborating—to ensure that credit union interests are protected across Capitol Hill.”

Highly Effective

Following the meeting, Stverak—who co-hosted the virtual event with DCUC President and CEO Anthony Hernandez—called the effort highly effective and productive.

“This was a great first step,” he said.

DCUC President and CEO Anthony Hernandez pointed out that credit unions have seen “enough” turmoil in the last few weeks regarding industry changes.

“Whether it is the industry's tax exemption, NCUA independence, the ongoing Credit Card Competition Act, or even preserving the CDFI Fund — every day seems like one crisis after another," he said.

During the one-hour meeting, DCUC introduced and outlined its Credit Union Industry-Wide Action Plan. One key tactic outlined: Setting and reaching a goal for the entire credit union movement—both trade associations, the leagues and individual CUs—to work to secure support for the CU tax exemption from a majority of lawmakers in both the House and the Senate.

"Our approach was to move beyond a simple informational meeting to drive wider industry participation from many of the other trade associations into an actual campaign plan,” stated Hernandez. “We also included our league partners and their governmental affairs personnel. Plus, we extended our invitation to credit union system partners who have just as much to lose if the industry were to be taxed.

"This plan features several lines of effort, objectives, and desired conditions for ensuring the industry's tax exemption is secure, the NCUA continues as an independent agency other industry issues continue to be addressed,” continued Hernandez.

Hernandez said the plan can either be duplicated or tailored to each organization.

“The first action step is to move out, starting today, since we have very little time left on the congressional calendar,” said Hernandez, who added the plan “illustrates the power of our movement so no one messes with credit unions again."

Jason Stverak

Not Just Rallying Cry

Stverak emphasized Monday’s meeting was more than just a rallying cry.

“It was about creating a plan to improve and increase cooperation and collaboration within the credit union movement and industry to address issues like the credit union tax status that threaten credit unions, as well as build the foundation for a long-term cooperative system,” he said.

Stverak talked about the meeting being a start to constructing an even stronger advocacy engine for credit unions through system-wide cooperation.

“So, that after the tax fight is won, credit unions won’t have to start this process again. We will have built an advocacy engine that all credit union leaders and associations can participate in to protect our industry,” he said.