350 Credit Union Supporters Battle Banker Legislation at State Capitol
Friday, January 29, 2010
FOR IMMEDIATE RELEASE:
Jan. 29, 2010
CONTACT:
Lewis Wood
Director of Public Relations and Communication
800.768.3344
pr@vacul.org
 |
| 275 of our 350 credit union supporters pose for a photo in Capitol Square during the Jan. 28 Credit Union Day at the General Assembly. Credit unions were working to oppose legislation that would make it easier for for-profit banks to acquire not-for-profit credit unions. [CLICK PHOTO TO ENLARGE] |
Credit union supporters from all across the Commonwealth traveled to Richmond Jan. 28 to oppose legislation that would pave the way for banks to acquire credit unions -- without providing adequate protection for the member-owners of the state's not-for-profit, member-owned credit unions.
With 350 credit union supporters in the halls of the General Assembly sporting red credit union scarves, lawmakers learned that credit union members fear banks are looking to employ a new strategy in their bid to drive the financial cooperatives from the marketplace: using their wealth to buy up credit unions.
"With 350 credit union supporters at the Capitol, 2,000-plus e-mails, hundreds of phone calls, we got our message across," said Virginia Credit Union League President Rick Pillow. "Everyone who belongs to a credit union has an ownership stake in their credit union. The question at the heart of this legislation is this: Should banks be allowed to buy up our credit unions without adequate protections for those member-owners? Lawmakers got their answer from concerned credit union members. We believe this legislation, in its current form, is bad news for every member of a Virginia-based credit union."
The two companion bills in question – Senate Bill 440 and House Bill 482 – are still in committee and could be debated at the committee level as early as next week. Credit unions have been working with lawmakers to rework the legislation, defeat it, or delay consideration of the bills until the next legislative session.
Among credit unions' many concerns with the bills: no rules defining how members would be notified about a pending acquisition of their credit union, no voting procedures are defined, and there are no clearly defined rules on what would happen to the credit union's equity, which is owned by the credit union's member-owners who built up that equity through the use of their credit union's services over many decades, in some cases.
Members of the credit union delegation were introduced in both the House and Senate galleries. Following morning meetings with lawmakers, the credit union delegation was also addressed by credit union lobbyists and Mike Reynold, deputy political director for Gov. Bob McDonnell.
"It's wonderful to see credit union members standing up to bankers," said Pillow. "This legislation represents an unprecedented shift in the relationship between not-for-profit, member-owned credit unions and for-profit banks. We'll continue to work with lawmakers on this legislation, educating them about the potentially disastrous consequences of enacting this legislation without giving the complex issues involved careful consideration."