The credit union movement has not been without its historic periods. In fact, the idea that consumers could come together to pool their funds for joint economic prosperity is pretty historic in and of itself.
But there occasionally are times when the combined energies of different groups working toward the same goal–in this case providing credit union access for all–generate a critical mass significant enough to move multiple mountains of resistance for the common good of all concerned. That’s what I remember most about the Credit Union Membership Access Act, better known as H.R.1151.
It all started in 1990, when five banks backed by the American Bankers Association sued NCUA, claiming the regulators’ policies toward credit union growth were harming their business. The legal fracas ended on Aug. 7, 1998, when then President Bill Clinton signed H.R.1151 into law. During that period, the U.S. credit union movement created a combined front of members, institutions and trade organizations that proved an effective force in preserving the goal of credit union access for all.
At the time I was executive vice president and chief operating officer of CUNA & Affiliates’ Madison campus, from which we supported the troops on the front lines. We did all we could to get the word out and offer whatever assistance our Washington team required to accomplish its goal.
During that period I also was CUNA’s liaison to World Council of Credit Unions, an organization where I now spend considerably more time. In 1997, World Council was looking for ways to enable credit unions in developing countries to have a greater voice and participation level in the organization’s activities. It was clear that credit union people in Africa, Latin America and other developing areas had the necessary passion and commitment to serve their members. However, many lacked the funds necessary to participate in World Council activities in a meaningful fashion.
Launched In Vancouver
Efforts were launched at the 1997 World Credit Union Conference in Vancouver, B.C., to fund attendees from developing countries at future World Council meetings, knowing they would benefit from networking with peers operating in countries with more developed credit union systems. The efforts to increase and diversify participation hit their stride the following year at World Council’s meeting in Capetown, South Africa. That was the first time minority attendees showed up in large numbers. The seeds for the African-American Credit Union Coalition also were planted during that meeting.
World Council’s development efforts roughly paralleled H.R.1151, at least in terms of the time period those efforts occupied. I’d like to think that the energy of one set of events helped drive the second set so that credit unions not only in the U.S., but worldwide were free to serve anyone wanting to join.
Of the many lessons learned from H.R.1151, two come to mind as critical no matter where we attempt to develop credit unions:
* When you open the box, as we did in attempting to rewrite credit union legislation, people in addition to you will stick their hands inside and tinker with the machinery. We wanted to change the laws in our favor, and we left the avenue open for the bankers to do the same. Not only did we fight for changes, we had to fight to maintain existing credit union advantages. Those were efforts hard-fought and, some might say, lessons hard-learned.
* We also learned we had staunch allies in both our federal and state regulators. They took a lot of heat and provided significant support without which I believe we wouldn’t have succeeded. The strong regulatory stance of both NCUA and the state agencies showed lawmakers that credit unions were well-managed and benefited from vigilant oversight. Strong regulation proved to be a critical component to ensuring the freedom we sought to serve credit union members.
It’s these lessons that World Council attempts to promote and preserve among developing credit union movements. Systems with strong regulatory guidance produce strong credit unions better able to serve members. In addition, greater unity among credit union people, institutions and organizations worldwide is vital if we’re going to continue growing and serving members, especially those living in conditions of dire need.
The passage of H.R.1151 helped make that point in the United States, and it’s something that credit unions worldwide practice each and every day. Admittedly, it’s a lesson you and I may sometimes forget, but credit unions from Afghanistan to Zimbabwe know that without unity and leadership, there would be no cooperative financial institutions left to serve their members. That would be a failure of both philosophy and service that members in those countries couldn’t afford.
Said During 1998
When things settle down, people will discover that this legislation (HR 1151) is not ideal. -Nancy Pierce
I have to say this is my happiest legislative day, to see something of this nature come to fruition so quickly. -Rep. Paul Kanjorski
