Illinois-Chartered CUs Get $840,000 Credit
State refunds excess regulatory fees collected last year.
The state of Illinois is giving its state-chartered credit unions an $840,000 credit for excess fees collected last year.
The Illinois Credit Union League, whose efforts led to the formula 12 years ago, announced Wednesday a threshold had been surpassed for the state’s fiscal year ending June 30, 2020, triggering the excess-over-margin regulatory fee credit.
The credit came from legislation enacted in 2009 to implement the settlement of the lawsuit the league brought against the state in 2004 over an improper fee escalation scheme. The law requires any fees collected by the state above a 25% expense threshold to be returned to credit unions in the form of a credit.
Along with rescinding the huge fee escalation at the time, the credits provided to credit unions over the last decade have exceeded $23 million.
The 181 Illinois-based state-chartered credit unions encompass $42.7 billion in assets and more than three million members. The state also has 52 federally-chartered credit unions based in the state with $6.5 billion in assets and 306,880 members.
“The regulatory fee credit for 2020 is welcome news for credit unions who continue to help their members and communities in unique and remarkable ways during challenging times,” League EVP/COO Patrick Basler said. “The fee credit was made possible through the League’s advocacy efforts and is one of many ways League affiliation strengthens the credit union movement’s mission to serve,” he said.
The league had contested then-Gov. Rod R. Blagojevich’s attempt to siphon examiner fees to pay the state’s budget deficit from 2004 to 2006. The league initiated legislation to implement a settlement, resulting in a $6.2 million cash payment in 2009.
The Democratic governor was arrested in 2008 while still in office, accused of trying to essentially sell the U.S. Senate seat vacated by Barack Obama when he became president. He was later convicted and went to prison in 2012. He was granted clemency in February 2020 by then-President Donald Trump.