WASHINGTON – The House of Representatives has introduced a bill that would allow credit unions of all charter types to add underserved areas to their fields of membership.
Currently, only CUs with multiple-group charters are able to add underserved areas to their fields of membership.
The new legislation, known as the "Financial Services for the Underserved Act," would permit other types of credit unions to seek the National Credit Union Administration Board's approval to add such areas. The legislation would require the CU to have a method for servicing those new underserved areas within 24 months.
The bill was introduced by Reps. Tim Ryan (D-Ohio) and Donald Norcross (D-N.J.), with Rep. Ann Kirkpatrick (R-Ariz.) listed as an original co-sponsor.
Both CU trade groups reacted positively to the bill on Tuesday. Dan Berger, president and CEO of the National Association of Federal Credit Unions, said in a statement, "We are grateful for Representatives Ryan's, Norcross' and Kirkpatrick's leadership in seeking to remove barriers that limit consumers' access to essential financial services. NAFCU applauds this long-overdue move to allow credit unions to reach out to consumers who need their services the most."
Ryan Donovan, chief advocacy officer for the Credit Union National Association, told Credit Union Journal he and other CUNA lobbyists, "have been working with these offices over the last several weeks to make sure the language they introduce achieves their objectives."
"We appreciate the support," Donovan said. "It is further evidence that Congress is interested in consumers having more access to credit unions."
NAFCU noted a proposed field of membership rule it supports is pending before the NCUA board.
