The Nevada CU League Weighs In On Conversions

RANCHO CUCAMONGA, Calif. – The Nevada Credit Union League Board of Directors has approved a position statement on charter conversions that maintains that credit unions are the best charter for providing consumer friendly financial products and services. “For obvious reasons, banker organizations are pressing their agenda to have more credit unions convert over time to bank charters,” said Bruce Rodela, Board Chairman of the Nevada League. “This statement affirms our commitment to resist these efforts to dismantle the credit union system, while preserving credit union options.” According to the Nevada League statement, there is no evidence of any circumstance where members have been better off after a credit union converted to a bank charter. According to the position statement, the Nevada League will continue to seek legislative and regulatory changes at both the state and federal levels that will make the credit union charter even stronger; pursue state and federal regulatory changes to strengthen conversion disclosure requirements to ensure that members are more fully informed about their ownership interests and the consequences to them of a conversion; and work with state and federal regulators to address guidelines that ensure an open and fair voting process, among other policy initiatives.