Senate Passes Bill That Gives Banks Same Free Rent Benefit as Credit Unions
One credit union official said, “We are disappointed the Senate kept the deceptive banker provision in their bill."
The Senate on Thursday passed its version of the annual defense authorization bill—legislation that would provide banks the same rent privileges that credit unions now receive on military bases.
The House Armed Services Committee’s version of the bill does not include that provision; the House is expected to consider that bill next month.
The Senate passed the bill, 86-8.
“We are disappointed the Senate kept the deceptive banker provision in their bill,” said Anthony Hernandez, president/CEO of the Defense Credit Union Council. “This provision is unfair to our military as these savings are put into the pocketbooks of bank shareholders versus our military communities.”
“The status quo — the decreasing number of on-base banks and the increasing lack of competition that are driving higher costs and fewer financial service options for our military families– must change,” said Steven Lepper, president/CEO of the Association of Military Banks of America. “Those who prefer it are concerned only about maximizing their own profits.”
The banking provision is a small part of the 988-page Senate bill, but it has raged on for several years.
Last year, the two sides thought they had hammered out compromise language, but credit union trade groups said a drafting error could have resulted in credit unions losing their access to military bases.
As a result, any compromise fell apart.
The two sides continue to accuse each other of misleading lawmakers.
“It is deceptive since no one is deprived of quality financial products and services when banks choose to abandon the base–defense credit unions have been successfully filling the gap for many years,” Hernandez said.
Lepper said that banks have been leaving military bases for the past several years.