Bankers have been outraged about changes in credit union field of membership (FOM) guidelines, which have been expanded to offer more people the opportunity to enjoy the advantages of credit union membership. Steve Swofford, president of Alabama Credit Union and immediate past chairman of the LSCU, spoke out from the credit union perspective in an Op-Ed published Dec. 23 on AL.com.
His comments added clarity to the issue as members of the Alabama Bankers Association and others complain about credit unions, including questioning the not-for-profit classification. The ICBA filed a suit against the NCUA’s member business lending rule, and the NCUA filed its motion to dismiss in response.
Steve explained, “Frankly, the bank trade associations would prefer that credit unions operate under laws and regulations established decades ago — rules that would preclude our industry from being relevant and competitive. In truth, due to opposition from the banking industry, there have been very few legislative enhancements to credit union laws over the years, so the fact that the regulatory agencies felt the need to handle modernization by regulation seems appropriate.”
Read the full article here. You can also add your comments in support of credit unions.