CUs, League Meet with Congressman Good; Key State Lawmakers Sen. Newman, Del. Byron

Credit union and League advocates meet with Congressman Bob Good in Lynchburg on Aug. 29.

Credit union advocates from Beacon Credit Union, Freedom First Credit Union, UVA Community Credit Union and ValleyStar Credit Union joined your League Monday in Lynchburg to meet with Rep. Bob Good (R-5th). 

The congressman noted he shares our concerns related to increasingly burdensome regulation and government mandates. He voiced his concern on two measures of keen interest to credit unions -- interchange and overdraft protection programs.

Credit unions oppose proposed changes to the interchange system (Credit Card Competition Act of 2022 – S. 4674). Merchants and their trade groups are asking lawmakers to expand interchange price caps to credit cards. Credit unions are adamantly opposed to any such move, noting interchange fees allow financial institutions to cover some costs associated with offering low-cost lines of credit, state-of-the-art fraud protection and reward programs. 

We also oppose any regulatory change to the current overdraft program model (Overdraft Protection Act of 2021 – H.R. 4277). Overdraft programs are already regulated, which includes a required opt-in feature, and we worry that any new regulation or government intervention related to overdraft programs runs the risk of restricting consumer access to this important service.

Rep. Good was also supportive of a measure that would allow qualifiying federally chartered credit unions to meet fewer times during the year. Credit unions view the Credit Union Board Modernization Act (H.R. 6889 and S. 4325) as an opportunity to modernize an outdated board meeting requirement, while reducing the regulatory burden on eligible credit unions, especially our small credit unions and those located in rural areas. 

Currently, all federally chartered credit union boards must meet at least once a month. The bill requires monthly meetings for new credit unions during their first five years of operation and for credit unions with a low soundness rating. But all other federally chartered credit unions could move to six meetings annually, with at least one meeting held during each fiscal quarter.

"We're grateful for Congressman Good's time and attention as we face several key legislative fights in Washington," said JT Blau, chief advocacy officer for your League. "The stakes are particularly high on the interchange and overdraft protection battles, and we're pursuing every opportunity to get our credit unions in front of lawmakers to tell our story." 

Your League and member credit unions continue to meet with our Congressional Delegation to discuss our legislative priorities. We held a meeting earlier today with Rep. Abagail Spanberger’s office (D-7) and we'll meet Sept. 13 with Rep. Rob Wittman (R-1).

While in Lynchburg, League staff also met with Del. Kathy Byron (R–22), chair of House Commerce and Energy Committee, the committee through which passes the majority of legislation related to credit unions and financial services. Del. Byron championed legislation in the 2022 General Assembly for us -- HB 268 -- which provided authority for state-chartered credit unions to issue debt to investors and use the proceeds to meet regulatory capital requirements, if permitted by regulators. The legislation was enacted this year.

She's aided credit unions in the past, as well, carrying a bill for us in 2015 that eased the process for state-chartered credit unions in placing ATMs and a bill in 2008 that created parity for state-chartered credit unions in the handling of dormant accounts.

Your League covered our state legislative priorities with the delegate, including digital currency issues, authority for credit unions to hold public funds, and field-of-membership issues. We also shared a number of business enviroment issues credit unions currently face, including employee recruitment and retention. 

We met later that day with state Sen. Steve Newman (R-23) to discuss our state legislative priorities. A veteran lawmaker with more than 30 years of service in the General Assembly, Sen. Newman is a longtime friend to credit unions and currently serves on the Senate's Commerce and Labor Committee, the key committee for credit union and financial services legislation in the state Senate.

Sen. Newman hasn't been afraid to stand with credit unions either, having introduced on our behalf in 2008, a public funds bill that would have allowed the Commonwealth's credit unions to hold public deposits and serve local government entities, such as counties, cities and school boards.

Credit unions have supported Del. Byron and Sen. Newman since the earliest days of their political careers and they in turn have supported credit unions.

At the state level, we are also meeting with or attending fundraisers for members of the leadership of both the Senate and House, as well as all members of the House and Senate Commerce committees.