CUNA joined the organizations on Wednesday in expressing its continued interest preserving the discretion of the Department of Defense to allow credit unions to use land and space on military bases at a nominal rate. CUNA, the Defense Credit Union Council and the National Association of Federally Insured Credit Unions wrote to the Senate Armed Services Committee ahead of the closed markup of the FY22 National Defense Authorization Act.
âUnfortunately, we expect for-profit banks to ask Congress again for handouts by seeking a provision in the National Defense Authorization Act of 2022 that would require the DoD to treat them the same as credit unions on leases, âwrote the letter. bed. âIt is alarming that big banks such as Wells Fargo and Bank of America, which regularly make billions in profits, would be tantamount to not-for-profit credit unions if such a provision were to become law. “
The organizations note that credit unions fulfill a vital role in the military community, and their continued focus on the military is evident throughout the military lifestyle.
“It is because of this emphasis on serving their members and their base, rather than on profits, that led Congress to give the DoD the discretion to allow credit unions to use the land and space on military bases at a nominal rate, âthe letter said. âIt is also true that defense credit unions have been urged to stay on base to alleviate the high transaction costs associated with poor service by other financial institutions. This is why the DoD continues to grant geographic franchises to defense credit unions operating at US military installations abroad.
âIt’s no secret that being member-owned and not-for-profit is how defense credit unions keep interest rates low and meet member needs (eg. , deployment), which improves the financial readiness of our army. Other financial institutions just can’t match the difference of credit unions, âhe adds.