Bill To Expand CU Powers on the Underserved

WASHINGTON–A bill introduced in the House Thursday would expand federal credit union powers to reach the underserved by allowing all charter types to once again add underserved areas to their fields of membership. “This legislation underscores that credit unions are a powerful ally for underserved and underserved and low-income consumers,” said Fred Becker, president of NAFCU, which worked to get the bill introduced. A federal court ruling in 2005 requested by the bankers barred community chartered and single group credit unions from adding underserved groups to their FOMs. The court sided with the bankers who insisted NCUA violated provisions of HR 1151, the CU Membership Access Act, which specifically allowed multiple group credit unions to add underserved areas, but did not mention community charters or single group credit unions. A similar provision is also included in the CU Regulatory Improvement Acts, or CURIA, which has been introduced in each of the last three congresses.