FAQs
How do I participate in the hill visits for CUNA GAC this year?
A major benefit to our virtual event is the ability to include as many advocates as possible in the lawmaker meetings, not just a select few. Find your pertinent meetings ahead of time on LSCU’s CUNA GAC page under the dropdown menus. On the day of the meeting, simply find the meeting on the page and click “Click here for meeting info” where the zoom log on is stored. It’s that simple!
Can I participate in the hill visits without registering for CUNA GAC?
LSCU encourages members to register for the 2021 CUNA GAC. Although virtual, this conference will provide attendees the opportunity to hear from great speakers and participate is interactive breakout sessions. However, if you are unable to register for the CUNA GAC, LSCU still welcomes you to participate in the hill meetings.
Is zoom etiquette different for virtual hill meetings than for other zoom meetings?
Over the past year, LSCU has arranged numerous phone calls and virtual hill meetings with lawmakers to inform them of our members’ immediate concerns during the COVID-19 crisis. These calls were vitally important, but short and to-the-point. These hill meetings will be longer, more conversational, and our chance to inform lawmakers of issues that affect us, including but not limited to COVID response. Since they are official business meetings, we ask that everyone dress for a meeting on Capitol Hill and turn on your camera! We will also engage the “raise your hand” function for those who have questions.
What is the format for these meetings?
Our general layout begins with our LSCU moderator introducing the lawmaker to those on the call. Then the lawmaker will take some time to speak to the group. Afterwards, we will move into a question and answer and informative discussion. Please refer to the talking points below for information about our legislative issues and potential matters for discussion. We expect the meetings to last between 30 and 45 minutes. At the end of each meeting, we will take a photo of all our participants for social media and newsletter purposes, so make sure to smile!
Resources
Legislative Issues and Talking Points
THE CREDIT UNION DIFFERENCE
For 86 years, credit unions have been one of the strongest investments Congress has made in America’s communities. Credit unions are the original consumer financial protectors. They are not-for-profit, member-owned financial cooperative that provide the same financial services that traditional banks do, but that’s where the comparisons end. Every credit union member is a shareholder because they’re all individual owners. A credit union’s net income is shared with all its members, which generally means fewer fees, better rates, higher savings return, easier access to credit, and better, more personalized service.
Today, 120 million American consumers (10.3 million in Alabama, Florida, and Georgia) continue to choose credit unions as their financial services partner. Credit unions continue to advance our not-for-profit, collaborative mission pre, during, and post-pandemic. We invest in the financial health and security of every community. Credit unions remain committed to ensuring that our members have access to safe, affordable services that work for their individual needs and help them achieve their financial goals.
Here are a few more standout differences:
- Credit unions provide members with financial literacy and counseling.
- Credit unions save members $13.6 billion annually.
- Even non-members benefit by $5.3 billion annually due to the presence of credit unions in local banking markets.
- In addition to advancing our communities by strengthening financial well-being, credit unions account for nearly $20 billion in local, state, and federal taxes annually.
CREDIT UNION RESPONSE TO THE PANDEMIC
Members have looked to their credit unions for financial guidance during the devastating financial stress of the COVID-19 pandemic, which is why credit unions are considered financial first responders.
Since the beginning of this crisis, credit unions have remained on the front lines implementing changes to their products and services to increase both member and non-member access to desperately needed credit. Additional types of assistance credit unions have offered to those affected by COVID-19 include:
- SBA Payroll Participation Program loans
- New loan products (payroll advance, 0% personal loan, deferred payment, etc.)
- Emergency loans
- Modifications to existing loans (skip-a-payment, payment extensions, reduced interest, etc.)
- Fee waivers/reductions
- Other services (financial counseling, debt consolidation, credit protection, etc.)
- Donations or assistance to community organizations
Credit union executives know their individual pandemic responses and should be prepared to share them with Members and staff. Some recommended data points to share are:
- Numbers of forbearances, payment deferrals, and their status – as well as the frequency of requests.
- How many of your members who were in forbearance still paid.
- Actual losses, autos, credit cards, signature loans, etc.
- What you see on the horizon going into 2021.
- Grand totals of fees waived, and impact on the credit union.
- Totals of Paycheck Protection Program loans approved by your credit union
MERCHANT DATA BREACH
Credit unions are required by the Gramm Leach Bliley Act (GLBA) to have data security standards over their member’s data. This is verified by prudential regulators during routine examination. GLBA was passed in 1999 and remains effective today.
The GLBA does not, however, pre-empt state laws, allowing the states to further define security standards and breach notification laws. In 2018 California passed the California Consumer Privacy Act (CCPA), a comprehensive privacy regime that applies to businesses operating in CA with revenue above $25 million. CCPA contains narrow exceptions, for items covered under GLBA. However, if each state were to pass a different version of CCPA, not only would this complicate compliance for GLBA, but it would also complicate compliance across the nation.
- Credit unions support a strong national data law that should cover all businesses and entities that collect, use, share, process, house and transmit personal information or other sensitive data. No entity should be able to escape responsibility.
- State attorneys general and the Federal Trade Commission should have authority to enforce privacy laws.
- Banking regulators should retain enforcement authority over those they examine given the success of the GLBA.
- National data protection and consumer notification standards with effective enforcement provisions.
- Preemption of inconsistent state laws and regulations in favor of strong Federal data protection and notification standards.
- Ability for credit unions and banks to inform customers and members about a breach, including where it occurred.
- Shared responsibility for all those involved in the payments system for protecting consumer data. The costs of a data breach should ultimately be borne by the entity that incurs the breach.
Our Ask of Congress:
Credit unions have followed GLBA’s privacy and data security requirement for over 20 years. We agree there needs to be an update in this day of digital privacy. Our position is to support a very strong national data security law that brings all those that collect, use, share, process, and house consumer information under one uniform standard.
PRESERVING THE CREDIT UNION TAX EXEMPTION
Federal Credit unions, as not-for-profit cooperatives, are categorized as tax exempt under section 501(c) (1) of the U.S. tax code, while state-chartered credit unions enjoy the same tax treatment under section 501(c)(14). Credit unions are organized and operated by volunteer boards of directors, do not sell stock or bonds, and return all profits to their members. To retain this structure, Congress has upheld an exemption from federal income taxes that was granted in the initial 1934 Federal Credit Union Act.
- Credit unions continue to prove our tax exemption by:
- Adhering to our mission and philosophy of people helping people. For example, short-term loans, courtesy pay, or payday loans are roughly 400% lower than other lenders.
- More than half of credit union originated mortgages go to middle- or lower-income borrowers. Nearly 50% of credit unions have a specific focus on serving lower-income families.
- More than 10% of credit unions are certified minority depository institutions.
- Annually, credit unions provide $18.9 billion in direct and in-direct benefits to the consumer, outweighing our $1.9 billion price tag for the credit union tax status. While tax exempt from income, credit unions annually pay nearly $20 billion in local, state, and other federal taxes.
Our ask to Congress:
- Please ensure the credit union tax status continues to be upheld.
- Please speak with colleagues on the House Ways and Means Committee/Senate Finance Committee, speak to party leadership, and speak at any opportunity to assist your locally-owned and controlled credit unions.
OTHER IMPORTANT ISSUES
Small Business Lending – Member Business Lending
Credit unions continue to support legislation that would grant a one-year freeze from the credit union member-business lending cap. We estimate this reprieve would generate about $5.5B nationally in economic growth along with 50,000 jobs. Legislation on this issue is pending introduction.
Stimulus Checks/Impact on Net Worth
Credit unions are experiencing a high volume of deposits as consumers receive stimulus checks or Economic Impact Payments. Because of our unique structure, deposit growth can put strains on the credit union balance sheet that brings about unnecessary regulatory scrutiny. We are speaking with the Financial Services and Senate Banking Committees about this issue, as no healthy credit union should be penalized on account of stimulus checks.
Charter Bills
Credit unions understand the realities of legislating in this environment. We know there are large national priorities from the healthcare crisis to social justice issues. We want to be a solution and aid our communities. Supporting new charter bills will ensure credit unions can bring financial inclusion to new levels, while ushering equitable financial well being.
Postal Banking
To expand consumers’ access to more banking options credit unions adamantly support and are diligently working toward the goal of expanding banking access, but we have grave reservations about proposals to leverage the United States Postal Service or create a public bank to achieve this goal.
Cannabis Banking
Providing financial services for cannabis related businesses is a choice for each individual credit union, and only a few are offering these services until there is a change in federal law. Credit unions nationally support the SAFE Banking Act as well as the STATES Act, both which would take steps to provide a safe harbor on this product line.
