FCU Act update needed to modernize fields of membership

It’s time to update the Federal Credit Union Act and allow credit unions to broaden their fields of membership to promote financial inclusion, CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak wrote to members of Congress Tuesday.

“Congress last overhauled the Federal Credit Union Act in 1998. In the past 25 years, changes in the financial services landscape and evolving consumer expectations have shifted the way people use and view their money,” Stverak wrote. It’s time to let credit unions provide members across the country with 21st century solutions.

He added that modernizing credit union fields of membership will:

• Make access to financial services more equitable and ensure that all federal credit unions can serve more communities across the country; and 

• Increase financial inclusion for traditionally underserved and historically marginalized communities.

Kyle Hagerty, vice president of advocacy and compliance at the Kentucky Credit Union League also shared what the credit union difference means for underserved and underbanked consumers.

“Congress should amend the [Federal Credit Union] Act to expand fields of membership, making a big difference for people who are looking for financial choices,” he said. “When credit unions are able to serve a broader community, that increases financial inclusion for traditionally underserved and historically marginalized communities.

This is the second message reinforcing the credit union difference sent to members of Congress over the August recess. Last week’s message showed how the credit union difference improves communities’ financial health.