What you need to know from the Advocacy Update at GAC

The advocacy update heard at GAC included two key areas America's Credit Unions will be focused on this year.

Right-sizing regulation

With the Consumer Financial Protection Bureau (CFPB) awaiting confirmation of its new director, and it's future unclear, America's Credit Unions Chief Advocacy Officer Carrie Hunt told those in attendance that regardless of what change looks like, "we believe as of now, the CFPB will survive into the immediate future and we can help inform that."

America's Credit Unions has advocated to exempt credit unions from CFPB rules, and the priorities the association recommends for the bureau include:

1. Focus on bad actors

The high level of regulation should be put on those with a history of harming consumers, with predatory practices and high-risk products, rather than on credit unions who have a proven history of consumer advocacy.

2. Address unregulated nonbank lenders

Put the focus on predatory nonbank lenders who exploit vulnerable consumers through high fees and limited protections. Credit unions, in contrast, are providing consumer-friendly alternatives that support and improve the financial well-being of their members.

3. Recognize the credit union difference as a valuable asset and the best financial option for underserved communities.

This means demonstrating the credit union difference for regulators, and ensuring they know how the impact credit unions have on communities and the country. Hunt noted the NCUA has been, in its current structure of a bipartisan board, somewhat protected from political swings of changes of administration. A threat to that structure could produce additional gridlock. With moves to create a smaller federal government, what that means for regulators is yet to be seen. However, America's Credit Unions supports sensible regulation from an independent regulator.

Don't Tax My Credit Union

The message to Capitol Hill this week by credit union advocates is, "Don't tax my credit union." Credit unions need more opportunities to serve their communities, not more hurdles, and a change in tax status would limit this.

A change in the credit union tax status would mean:

• A new tax on more than 140 million Americans who are credit union members
• $33 billion in lost income tax revenue for the federal government over the next 10 years.

Credit unions already pay $36 billion in federal, state, and local taxes.

As not-for-profit cooperatives, credit unions use their tax status to provide more financial options to more people-and they offer them at better rates.