CUNA Asks Trustees to Permit CUSOs To Offer Bankruptcy-Related Credit Counseling

WASHINGTON — CUNA recently suggested to the U.S. Trustees that while credit unions cannot directly provide bankruptcy credit counseling services to their members filing for bankruptcy because of the potential conflict of interest, CUSOs should be considered.

Under the new bankruptcy system, debtors must complete approved credit counseling before filing for bankruptcy. “Even though credit unions under an interpretation from the U.S. Trustees office can’t really perform that counseling function directly themselves we’re suggesting to the Trustees themselves that nonprofit CUSOs be allowed to be formed in order to provide those kinds of services,” CUNA Deputy General Counsel and Senior Vice President for Regulatory Advocacy Mary Dunn explained.