Credit Unions Retort Banks’ ‘Cynical’ Take on the CU Industry

Just two days before the 2024 Governmental Affairs Conference (GAC) began in Washington, D.C., credit union organizations sent a blunt letter to congressional leaders in response to a banking industry letter that was filled with “numerous false assumptions and baseless claims,” according to credit union officials.

The letter submitted on Friday and signed by 48 credit union organizations, including leagues and America’s Credit Unions, was addressed to leaders of the Senate Committee on Finance and the House Committee on Ways and Means. Officials wrote that the banking industry is yet again asking Congress to hold “needless” oversight hearings on the credit union industry.

“This tired attack from the banking trade associations contains numerous false assumptions and baseless claims, and we want to set the record straight,” the letter stated.

In the three-page letter, officials stated that credit union members received more than $21 billion in economic benefits for the 12 months ending in September of last year. The letter pointed out that banks closed more than 19,000 branches from 2012-2023, while credit unions opened more than 1,300 net branches in the same time. “It is deeply cynical of banks to write a letter to Congress complaining about credit unions stepping up to serve the consumers they have abandoned. A thank you might be more appropriate.”

The letter added, “We can understand why banks would want to use Congress to eliminate their competition, but this is not in the best interest of hard-working Americans who trust credit unions to provide safe, affordable financial services products.”

Credit union officials hope that lawmakers see “that these baseless attacks by banks are a thinly veiled attempt to crush competition, not to exercise oversight.”

Sources said this letter will be used by many credit union officials who will be meeting with their state representatives this week during GAC.

READ MORE: The full letter to lawmakers.