CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » ICBA pressures NCUA IG to deny access to military members
Policy & Issues

ICBA pressures NCUA IG to deny access to military members

May 28, 2020
NCUALogo

The Independent Community Bankers of America (ICBA) has requested an investigation from NCUA’s Inspector General on the agency’s decision to change the methodology used to determine whether a credit union qualifies for the low-income designation by fully considering military personnel. NCUA Chairman Rodney Hood announced the change in early May.

“NCUA’s decision will allow more credit unions to leverage the LICU designation, expanding access to safe and affordable financial products for American servicemembers,” said CUNA President/CEO Jim Nussle. “It’s incredibly disheartening that bankers would try to prevent our brave men and women in uniform from accessing the services of low-income credit unions.”

The LICU designation is granted when low-income members comprise more than 50% of a federal credit union’s membership. It entitles the credit union to certain statutory benefits, including being able to accept non-member deposits from any source, offering secondary capital accounts, member business lending exemptions and the ability to apply for grants and low-interest loans from NCUA.

CUNA, Leagues and policymakers, including NCUA Board Member Todd Harper, have supported the change for several years, with Nussle noting in a letter to Hood that such an action was especially appropriate during the ongoing pandemic.

This is the latest effort by banking trade organizations to degrade servicemembers’ financial well-being by complicating their access to credit union services. In 2019, ICBA and ABA were behind an effort to open military bases to profit-driven banks and abusive payday lenders, impairing troops’ relationship with their credit union.

KEYWORDS ncua
Credit Union Magazine - Winter 2020

Winter 2020

Credit Union Magazine’s Winter 2020 edition features CUNA’s 2021 lending outlook, CEO insights on adjusting to the pandemic, and board recruitment strategies.
Digital Edition •  Subscribe

Trending

  • Compliance: 2020 Year in Review, Checklist now available

  • NCUA proposes raising threshold for ‘complex’ CUs

  • 5 fraud predictions for 2021

Tweets by CUNA_News

Polls

Will you ask employees to receive the coronavirus vaccine?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors