CUNA, Defense Credit Union Council (DCUC), and National Association of Federally-Insured Credit Unions (NAFCU) sent joint letters on Tuesday to the House and Senate Armed Services Committee members asking them to reject inclusion of an amendment in the National Defense Authorization Act (NDAA) that would require the Department of Defense (DoD) to treat for-profit banks the same as credit unions when it comes to leases. This leasing treatment is currently reserved for not-for-profit entities, such as credit unions.
“It is alarming that large banks such as Wells Fargo and Bank of America, who regularly earn billions in profits, would be equal to not-for profit credit unions if such a provision were to become law,” the letter reads. “Keep in mind, defense credit unions are owned by their members – the men and women of the military – while banks are owned by shareholders who are seeking a profit. While banks argue for “parity” on this issue, the fact is that banks already can obtain leases at a nominal cost.”
For the last several years, CUNA, Leagues, and the Defense Credit Union Council have successfully persuaded Congress to exclude what would have expanded an exemption for certain cost waivers for financial institution branches on military installations by reminding lawmakers that the credit union difference sees earnings reinvested in servicemembers, their families, and their facilities, rather than being shared with investors.