HIGHTSTOWN, N.J. – “As a society, we should be encouraging credit unions to step in to help people, but the banking lobby is suing to try to prevent these rules from going into effect, denying millions of Americans effective access to credit unions,” writes NJCUL President/CEO David Frankil regarding banks suing the NCUA over its new field of membership rules in an op-ed piece published by the Daily Record.
“Looking at how the banking community has consistently failed to protect its customers from financial turmoil gives one clue as to why they don’t want credit unions to do our job,” he continues, citing banks’ failures during the Great Depression and the financial crisis just a few short years ago.
“Here is what they are really afraid of losing,” he writes. “A world in which they control most of the marketplace, charging exorbitant fees, and inflating interest rates without fear of an alternative putting pressure on them to treat their customers properly.
“That is why their lawsuit against these new rules is meritless, and can only be construed as an affront to consumers. Fortunately, Congress provides NCUA the full authority to interpret the Federal Credit Union Act, and we’re confident the courts will agree.”
Frankil’s op-ed is part of a joint-communication effort between CUNA and states leagues through CUNA’s “Campaign for Common-Sense Regulation”.