NAPERVILLE, Ill. (2/3/16)--For the sixth year in a row Illinois credit unions received a regulatory fee credit, offering an additional boost to their bottom lines.
Illinois state-chartered credit unions receive credit for the overpayment in regulatory fees made under former-Gov. Rod Blagojevich administration's fee escalation and transfer budgetary arrangement.
A Jan. 19 letter sent to each credit union in the state identified the specific amount of its individual fee credit. The aggregate paid to credit unions came to $179,144.
“This confirms the strength of credit unions when we act in a unified manner,” said Stephen Olson, Illinois Credit Union League (ICUL) executive vice president, general counsel and chief operating officer. “The role played by ICUL, specifically the prosecution and favorable settlement of the regulatory fee case is an excellent example of the value of working together to achieve a common goal.”
Under the terms of the settlement, regulatory fees paid by Illinois state-chartered credit unions--as well as banks, savings banks, and savings and loan associations--were escalated far above the actual budgetary cost of operating their respective regulatory agencies. With accompanying amendments to the State Finance Act, surplus monies collected were then transferred to the General Revenue Fund and used for expenses other than supervision.
The regulatory fee credits continue because of legislation initiated by ICUL to implement the court-approved settlement of the regulatory fee case it filed against Blagojevich in 2004. The settlement was signed into law by then-Gov. Patrick Quinn effective April 6, 2009.
“It was a very difficult decision for the league to pursue litigation against the state, including the governor, more than 10 years ago,” said Tom Kane, ICUL president/CEO. “But we take great pride in knowing our five-year effort in court and the Legislature has led to regulatory fee credits totaling more than $16 million dollars for our credit unions over the past six years.”