Credit union leagues in Nebraska and Indiana kept up the regulatory relief drumbeat this week, with calls for pro-consumer regulatory relief in local publications. League efforts in Massachusetts, New Jersey and Ohio led to the first wave of articles, and leagues in Nebraska and Indiana followed suit this week.
“Credit unions and community banks desire a sound regulatory environment that makes sense for consumers rather than one that penalizes them for the actions of a few bad actors in the marketplace,” wrote Nebraska Credit Union League President/CEO J. Scott Sullivan. “The financial crisis of 2008 brought to light many of the egregious acts by Wall Street banks … although our local community financial institutions did not cause the crisis, they have been unfairly included in the solutions coming down from Washington.”
Sullivan, who wrote a post in the Omaha World-Herald along with Nebraska Independent Community Bankers CEO Kurt Yost, cited CUNA’s estimates that 235 regulatory changes by 23 federal agencies have been filed since 2008.
“These regulations, however well intended, have a real and direct impact on all Nebraskans who seek a home loan, car loan, short-term loan and so on,” they wrote.
Meanwhile, John McKenzie, president of the Indiana Credit Union League, took to Inside Indiana Business to reiterate the credit union call for repeal of the Durbin Amendment. The amendment is part of the Dodd-Frank Act, and limits fees charged for debit card processing.
“Because of the price controls, credit unions alone have seen a $1.1 billion decrease in our interchange fee revenue. The losses have extended to the broader banking industry as well,” McKenzie wrote. “Credit unions and other small institutions, who already have a higher cost structure due to our size, have to bear a larger share of the costs of running a significantly less profitable system.
McKenzie added that overall regulatory compliance costs for credit unions have grown by 39% over the past 7 years, totaling $7.2 billion.
“This only ends up hurting our members, who make up nearly one-third of our state’s residents,” he wrote.
CUNA launched its bipartisan, pro-consumer Campaign for Common-Sense Regulation earlier this year in order to take advantage of a regulatory relief-friendly administration and Congress.