Nick Wodogaza, Founder, CUs Together
First, I love to recognize how credit unions success in serving members has created such a positive environment as more people continue joining credit unions. The number of members we serve has grown to now exceed 142 million consumers!
It is therefore notable this message recognizes a challenging period when virtually every credit union unfortunately had to turn-away people who wanted to join their credit union.
With August 7th, we recognize the 27th anniversary of H.R. 1151– the Credit Union Membership Access Act.
For the credit union movement, it has been 27 years since we celebrated the success of the Campaign for Consumer Choice with approval of the Credit Union Membership Access Act. For credit unions, it is hard to relate to the environment that existed in 1998 after a legal complaint by bankers had enough impact in the courts to affect “who” could join a credit union. Virtually every credit union had to unfortunately turn away so many consumers who wanted to join.
This was such a pivotal time in our history. Working together credit unions were placed in a more enviable position to be recognized as a vital option for consumers as banker attacks upon credit union membership became identified as attacks upon consumers having a financial institution choice.
We should continue to recognize the Campaign issues so we will remember the importance of our efforts to continually communicate the uniqueness of credit unions to our members, the general public, and our elected representatives. Plus, remember the importance of our cooperative movement with credit unions of all sizes supporting other credit unions.
The Credit Union Membership Access Act expanded membership opportunities and allowed more field-of-membership options, especially for community-chartered credit unions. For credit unions, in serving more consumers they can provide friendly, quality services with more staff offering more services from more locations with more resources to better serve all members.
I revisit this time in our history to highlight the importance of credit unions working cooperatives and continuing to share the credit union difference. Credit union success with this law change did not come easily as few legislators, bankers or pundits felt we could get this law passed. In fact, it took work by credit unions and our supporters to get members’ and consumers’ support to convince Congress to pass the bill. It was the really the support of individual members and consumers which really made the difference.
Momentum for passing the law grew as credit unions and their members cooperatively worked with members of Congress to encourage passage of the Act. I so well remember this period as our credit union worked with our members and Select Partners who contacted their members of Congress as other credit unions worked with their members and groups until we
showed our lawmakers the difference credit unions make in the lives of real people. Virtually all members of Congress ultimately voted for the Act. Nationally, the level of support was phenomenal as the attacks upon credit unions were recognized as attacks upon consumers having an option to even consider joining a credit union.
With passage of the law allowing more people to join a credit union, the bankers were truly shocked. Then and now, the tax-exempt status of credit unions was the single banker talking point. Credit union laws and regulations were never created to be fair to banks. By law, credit unions were created to benefit consumers who need financial guidance and better priced financial products which they can trust. Credit unions exists only to provide friendly, quality financial services offering real value to members.
Grassroots support (from members and the public) will always make a difference in every elected representative’s opinion. With the declining number of credit unions, and a lower level of cooperation between credit unions, I cannot help but wonder if we would see the same results in 2025.
Now, many years after gaining passage of this important legislation allowing consumers a choice, we must remember our members will not understand our credit unions as different unless we tell and show the difference. Americas Credit Unions and Leagues continues to play a big part in the success of credit unions, but cannot only achieve so much. Just like we have changed over the years, there are many new legislators and many new members who need to understand the difference we make. Advertising alone cannot communicate such an important message so we must all (each of us) tell members about, and showcase, the difference.
Each of us is the credit union movement to our members, and it remains important we maintain a commitment to helping our members and other credit unions — thereby making a difference each day!