Top 10 Issues Depend On Your Perspective

One of the most important things all trade associations must do to help justify their existence, is to first identify, then prioritize, and finally handle the most pressing industry issues. Plus, after determining what qualifies as a bona fide industry issue, the most successful trade groups then seek concurrence by making their issue choices and prioritization of them widely known, especially to those who pay the association’s freight. If they don’t do this, they may find themselves spending considerable time and money on things not of pressing interest to those whom they represent. Recently CUNA and NAFCU each came up with a list of what they considered the current major issues facing credit unions. Looking at CUNA’s and NAFCU’s lists independently spoke volumes about how the competing national CU trade groups each view what’s most important to basically the same constituency, namely, member credit unions. And what priority they assign to specific issues on their respective lists. On some issues there was agreement that a particular concern was indeed an issue. Also, agreement where it fell in the pecking order of importance. On others, one trade group saw something as an issue that didn’t make the other group’s top 10. Some fairly obvious credit union issues were conspicuous by their absence. On the lists were issues that either CUNA or NAFCU saw as a specific challenge. But also included by both CUNA and NAFCU were issues seen as a more broadly defined concerns, almost blue sky in some cases. Not surprisingly, high up on NAFCU’s issues list was this one: “Continuing to aggressively pursue regulatory and legislative efforts to enhance the federal charter.” After all, that’s NAFCU’s mission, to represent, protect, enhance, and promote FCUs. Needless to say, this one was not on the CUNA list. A correct assumption by CUNA list makers is that everyone knows that the industry’s largest trade group represents all credit unions, federal and state charters alike. Near the top of CUNA’s list was this: “Stopping the abuse of the bankruptcy law by reforming it.” NAFCU also addressed the ongoing bankruptcy abuse problem, but was more specific by including a reference to “Chapter 7 means test, financial education, and a workable reaffirmation process.” But both felt bankruptcy reform was and continues to be important. Both groups gave high priority to defending the credit union tax-exemption and fighting back against banker attacks on numerous fronts. Both also thought reforming PCA (Prompt Corrective Action) was an important issue. CUNA made it a stand-alone issue while NAFCU buried it in a wordy catch-all listing. Neither listed the now-cooled-off-a-bit IRS generated UBIT (Unrelated Business Income Tax) issue that would impact state-charters. Only CUNA addressed the infamous “effectively serving those of modest means” issue without defining either “effective” or “modest means.” Only NAFCU mentioned the FCRA (Fair Credit Reporting Act) preemptions due to expire at the time the list was released. CUNA and NAFCU both think public relations is important enough to include on their lists. CUNA said it most succinctly: “Creating greater public awareness of credit unions” (see consumers’ views on pages 68-69). Both groups think lending flexibility needs to be addressed, especially member business loans. Both see regulatory relief as an important issue. Both CUNA and NAFCU used the list exercise to enter into the realm of industry politics. In fact, CUNA made this “issue” number one: “Maintaining unity among all credit unions regardless of charter, size, or management style.” CUNA also wants to “Build(ing) closer relationships between CU management and boards.” At first blush, both of these “issues” sound warm and fuzzy, but I for one have absolutely no idea why CUNA would consider this a major issue for them, or why they gave it top priority, or how they think it could be accomplished, or even what it means. I also don’t understand why number 10 is even on the CUNA list. “Maintaining a strong connection to traditional credit union values, while meeting the evolving financial needs of members.” What members? CUNA members? Or credit union members? Not only is this blue sky but it seems to me that it is the responsibility of individual credit unions to meet the “evolving financial needs of members.” Unless of course CUNA is saying that it has a role to play in giving credit unions the tools needed to become more valuable to members (it does). If that’s what CUNA is inferring, wouldn’t it have been more powerful to just come out and say just that? NAFCU’s list is much longer than CUNA’s, not because it sees more issues, or radically different credit union issues, but because it feels the need to go into more detail while attempting to cover the waterfront. Its list too is tainted with a bit of blue. Having said all that, I feel strongly that developing such lists of issues and then making them widely known is a good idea. They provide an effective way for all interested parties to at least attempt to sing from the same song sheet and work together towards common goals. Association dues payers need to keep an eye on the issues lists of CUNA and NAFCU to make certain the credit union trade groups agree with credit union management and volunteers on what issues are most important. By the way, wouldn’t it also make sense at some point if CUNA and NAFCU got together and came up with a single credit union industry list of issues that they could both agree on and work on together? Finally, although each group’s list was limited to its top 10 issues, in reading them it struck me that there were many issues important to credit unions that were left out. If any readers agree, this might be the time to come up with your own top 10 credit union issues as seen from your vantage point. Can you? Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail [email protected].