ABA Media Contact: John Hall
Phone: (202) 663-5473
Last updated: March 8, 2013
The 1934 law establishing the federal credit union charter stated its purpose was "to make more available to people of small means credit for provident purposes through a national system of cooperative credit."
Once, members of a credit union knew each other and pooled their resources to privide credit for their co-workers and/or neighbors. This common bond, the hallmark of the credit union industry, has been stretched beyond recognition.
Today, many credit unions have grown into highly profitable, billion-dollar institutions offering a full range of financial services- including insurance and securities brokerage- to just about anyone. Though these institutions look and act like banks, they do not pay taxes or abide by the same rules as banks.
The NCUA has steadily adopted policies that have expanded credit union membership beyond the limits prescribed by Congress. As credit union membership expands, so does the cost to American taxpayers, who underwrite the credit union industry's tax subsidy to the tune of more than $1 billion a year.
ABA has challenged NCUA's policies through comment letters and in court and will continue to make the case that similar institutions ought to be treated similarly.
- ABA letter to Congress on credit union tax subsidy (Feb. 25, 2013)
- ABA letter to Congress on credit union expanding lending powers (Jan. 31, 2013)
- Joint ABA/ICBA letter to Senate opposing Udall amendment (March 15, 2012)
- Joint ABA/ICBA letter opposing efforts to raise CU lending cap (Feb. 6, 2012)
- Letter to Congress opposing HR 1418 to raise CU lending cap (April 14, 2011)
- Memo to House urging opposition to CU business lending expansion (May 18, 2010)
- ABA, ICBA letter to Treasury opposing CU business lending expansion (March 24, 2010)
- Letter to House leadership opposing CU business lending changes (March 2, 2010)
- Letter to NCUA on Proposal Amending Rule Regarding Corporate Credit Unions, (Feb. 23, 2010)
- Letter to NCUA on Chartering and Field of Membership for Credit Unions (Feb.19, 2010)
- Letter to Senate opposing new credit union lending authority (Jan. 19, 2010)
- Credit Unions: House Memo Opposing H.R. 5519 (April 28, 2008)
- Treasury's Blueprint questions "new breed" credit unions (April 17, 2008)
- Conversion of Insured Credit Unions to Mutual Savings Banks (Aug.28, 2006)
- Conversion of Insured Credit Unions to Mutual Savings Banks (Oct. 1, 2004)
- Conversion of Credit Unions to Mutual Savings Banks (Dec. 1, 2003)
- Revised definition of credit union organization (Sept. 2, 2003)
- NCUA's Proposed Member Business Loan Rule Changes (May 6, 2003)
- Organization and Operations of Federal Credit Unions (Jan. 31, 2003)
- NCUA - Organization and Operation of Federal Credit Unions (Feb. 15, 2002)