news.cuna.org/articles/118431-cuna-backs-house-diversity-covid-19-fraud-prevention-bills
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CUNA backs House diversity, COVID-19 fraud prevention bills

September 21, 2020

CUNA wrote House leaders Monday to support two pieces of legislation that are expected to come up on the House floor this week.

The Ensuring Diversity in Community Banking Act of 2019 (H.R. 5532) would, among other things, encourage Federal government deposits in Minority Depository Institutions (MDIs), establish a Small Business Administration (SBA) task force focused on MDIs and Community Development Financial Institutions (CDFIs) and require diversity and inclusion reports from each prudential regulator.

“We believe this bill is well placed to support MDI and CDFI credit union’ resiliency so that minority and underserved communities can continue to benefit from the financial opportunities they provide. This is especially urgent in the context of the pandemic,” CUNA’s letter reads.

CDFI credit unions have provided more than $1.3 billion in Paycheck Protection Program (PPP) loans to small businesses.

The COVID-19 Fraud Prevention Act (H.R. 6735) would establish the Consumer and Investor Fraud Working Group, a collaboration between the Securities and Exchange Commission and Consumer Financial Protection Bureau with the goal of helping to protect against fraudulent investment opportunities, marketing and scam attempts during the COVID-19 pandemic.

“Several of our member credit unions are reporting phishing attempts disguised as information from international organizations on COVID-19, as well as emails with links to make donations to various causes in support of phony COVID-related charities,” the letter reads “CUNA, our league partners, and member credit unions have encouraged credit union members and staff to be cognizant of phishing emails and never click unknown attachments or links and to be cautious of emails and phone calls asking for unexpected personal information.”