The Nussle Report - CU tax status preserved in Senate and House bill - November 10

11.10.2017

Credit union tax status preserved in Senate tax reform bill, Ways and Means approves House bill: We had two pieces of good news on the tax reform front yesterday. The Senate FinanceCommittee unveiled its tax reform proposal and the House Ways and Means Committee approved similar legislation. In both instances, no changes were made to the not-for-profit tax status of credit unions. This is an affirmation of our fierce 360-degree advocacy, including the grassroots power of sharing your own stories with lawmakers about the value you add to your communities. Well done! Here's our detailed analysis of the House bill which we expect to be approved by the full House next week. More details about both bills can be found on CUNA's Removing Barriers Blog.

 

CU system stands united on Equifax lawsuit: Since revelations of Equifax's stunning data breach, exposing information of over 145 million consumers, we have been working closely with credit union leagues nationwide to provide a strong, united front in a class-action suit against the credit reporting company. We filed our lawsuit Oct. 4, and as of yesterday we are aware of 31 leagues that have either committed to pursuing claims against Equifax or are considering participation in other ways. Several have decided to join our lawsuit. I'm heartened so many are on the way to taking action to hold Equifax accountable for the damage it has caused.

CFPB once again deploys its flawed one-size-fits-all strategy: There they go again! This time it's overdraft practices. In a recent letter to CFPB we objected to the bureau's plan for one-size-fits-all overdraft disclosure forms and practices. Credit unions offer these programs as a convenience along with education to help members manage their money. Bureau findings about bank overdraft products should not be used to impose new regulatory burdens on credit unions.

CUNA takes ADA website concerns to Senate Judiciary and back to DOJ: We took our multifront fight to curtail abusive ADA lawsuits against credit unions to the Senate Judiciary Committee this week and back to the Department of Justice (DOJ) as well. In my letter to committee leadership, I noted these frivolous suits and urged the committee to use its influence with the DOJ to finalize a long-languishing proposal dating back to 2010 that would effectively curtail the lawsuits. We also sent a letter to the DOJ this week as a follow-up from our meeting with Acting Assistant Attorney General John Gore.

TCPA comment period garners strong CU interest: Dozens of credit unions and other third-party supporters have weighed in to support our FCC petition regarding much-needed changes to the Telephone Consumer Protection Act (TCPA) regulations. We'll now have a chance to review and respond to the comments as the FCC considers our request for relief. We remain concerned that the convoluted regulatory landscape at the FCC is stifling the ability of credit unions to communicate with members about important account information.

CUNA economic team predicts strong loan growth next year: Mike Schenk, CUNA vice president of research and policy analysis, cites four factors for strong credit union loan growth in 2018. Job gains, strong consumer balance sheets, pent-up demand, and affordable credit are all contributing to what is lining up to be another year of credit union growth serving member needs.

SHOUT OUT: Congratulations to Cornerstone Credit Union League President/CEO Caroline Willard, credit union CEOs in Texas and their teams for a great victory on election day. We won two ballot initiatives in the Lone Star State that will benefit credit union members. Our National Advocacy Fund played a key role in supporting the campaign and CUNA was proud to work with Caroline and her team. It's a great demonstration of the power of our interdependence.

Thank you for your continued participation in and engagement with the CUNA/League system. If you have any issues you'd like CUNA to address, I encourage you to give me a call directly at 202-508-6745 or email me at jnussle@cuna.coop.

In recognition of Veterans Day, all of us will be forever grateful to those who have served and sacrificed for our country.