Position statements represent the Northwest Credit Union Association’s official stance on legislative, regulatory and economic issues affecting credit unions. Position statements provide Association government relations staff with day-to-day guidance as they shape the face of legislation and regulation in Salem, Olympia and D.C.

For additional information on the Association’s legislative or regulatory position on current issues, please contact a member of the Association’s Government Relations team at 800.995.9064, option 4.

Affirmative Action.

All businesses in the United States are required to comply with federal affirmative action laws if they "contract" with the federal government. The Association strongly supports full compliance with civil rights laws, but opposes legislative attempts to impose affirmative action requirements on credit unions through the nexus created by their federal deposit insurance.

ATM Surcharges.

The Association supports a voluntary, market-oriented approach to ATM surcharges.

Bankruptcy Reform. 

The Association recognizes that consumers should have bankruptcy available to them, but opposes any bankruptcy system that allows persons who could pay off their debts to declare bankruptcy needlessly. The Association strongly supports efforts to encourage a needs-based bankruptcy system, and establish a fairer balance between the rights of consumers and creditors. Furthermore, a meaningful bankruptcy philosophy must preserve the ability of credit unions and their members to reaffirm debts.

Board Compensation.

Credit unions should be permitted, but not required, to compensate their board and committee members.

Community Reinvestment Act.

The Association opposes legislation or regulation that would impose CRA-type requirements on credit unions.

Consumer Disclosure Requirements. 

The Association supports disclosure requirements that educate the consumer and supports the consumer's right to receive accurate and timely information on the terms and conditions of products and services offered by financial institutions. However, the Association recognizes that the constant addition of additional disclosures inundates consumers with information making vital disclosures ineffective. Therefore the Association opposes excessive disclosure requirements that fail to outweigh benefits to the consumer.

Consumer Privacy. 

The Association supports:

• Many of the privacy principles established by the Federal Trade Commission, including: notice to the consumer, consumer choice, appropriate security standards, and equitable remedies.
• Additional business efforts to educate the consumer on how their personal information is used.
• The consumer's right to "opt out" of the sale or sharing of the consumer's personal financial information.

The Association cannot support legislation establishing an "opt in" standard, as this would pose a tremendous compliance burden, and would hinder legitimate business practices.

Conversion to Bank Charter.

The Association reaffirms its conviction that the credit union charter represents the best vehicle yet devised for serving the needs of consumers. As such, the Association will not assist credit unions in their efforts to convert to a bank or thrift charter.

Creditor Rights. 

The Association supports the robust protection of creditor lien rights, and laws that reinforce an equitable and efficient recovery process.

Lender Liability.

The Association supports legislation which would eliminate or minimize lender liability for damages or costs connected with the illegal or improper use of credit union property, when this use is unknown to the credit union. Examples include the illegal use of credit union-issued plastic cards for gambling purposes, and environmental damages on credit union-owned property not created by the credit union.

Disclosure of Regulatory Enforcement Information. 

The Association opposes the publication of regulatory enforcement documents such as documents of resolution, letters of understanding, or consent orders to the public. Although the Association generally supports regulatory sunshine, these documents present a one-sided and negative picture of a financial institution, and can be damaging to the financial institution’s reputation.

Dual Chartering.

The Association strongly supports a regulatory system that allows dual-chartering to thrive under the belief that dual chartering (the choice between a federal or a state charter) allows for the incubation of new powers and authorities, and promotes credit union self-determination. The Association supports legislation and regulation that serves to enhance dual-chartering in Oregon and Washington, and throughout the United States.

Deposit Insurance.

The Association supports a separate credit union insurance pool that is distinct from other financial institution insurance pools, independently governed, and vested with the authority to promulgate insurance-related rules that account for the unique aspects of credit unions as cooperative, member-owned financial institutions. The Association opposes a federal deposit insurance mandate, and supports dual-chartering through private alternatives to federal deposit insurance.

Field of Membership.

• Oregon. The Association supports efforts to move the charter toward non-regulatory field of membership.
• Washington. The Association supports efforts to protect and preserve Washington’s progressive field of membership environment and stands ready to defend it against threats.
• Federal. The Association supports the expansion of field of membership for federally chartered credit unions under the Federal Credit Union Act and its interpreting regulations, with the ultimate goal of deregulating field of membership.

Financial Education & Thrift. 

As member-owned financial cooperatives, credit unions are a means by which individuals can improve their lives. The Northwest Credit Union Association is dedicated to assisting consumers achieve prosperity. The Association supports legislation and regulation which would encourage consumer savings and thrift. The Association actively promotes increased financial education among all age groups, and supports efforts to teach personal financial management skills that empower individuals to achieve success.

Fraud & Identity Theft. 

The Association supports legislative efforts to reduce consumer and financial institution fraud losses through legislation designed to increase the penalties for financial fraud and identity theft, and allocate additional enforcement resources toward the prosecution of these crimes. The Association supports legislation that would require negligent parties to reimburse financial institutions for costs associated with security breach notifications and costs stemming from the security breach. The Association supports legislation that requires third party information custodians to promptly notify the financial institution of security breaches, allowing the financial institution to mitigate consumer losses.

Interchange Fees. 

The Northwest Credit Union Association recognizes that interchange fees support the safe maintenance and operations of the American plastic card infrastructure, and that this network provides tremendous benefits to both American consumers and retailers themselves. The Association supports the clear disclosure of agreements, rules and guidelines applicable to interchange transactions, but opposes the requirement that internal negotiations or contracts be made public. The Association opposes efforts to impose artificial price controls on interchange rates, and supports a system of free market negotiated interchange. The Association recognizes that a loss of interchange revenue to financial institutions will be passed on to consumers in the form of more expensive products and services.

Non-Partisan Status.

The Association supports those individuals in public service that, in turn, support credit unions, their issues, and their philosophy, regardless of political party or affiliation.

Powers & Authorities.

Credit unions should have any power that—either exercised directly or through a CUSO—would benefit the credit union’s members.

Products & Services

The Association opposes any restrictions that would unduly hinder a credit union’s  authority to deliver credit, savings or ancillary products that are available elsewhere in the financial services marketplace. The Association supports efforts to identify and eliminate predatory financial products and services.

Public Funds Deposits.

All credit unions within the Association have the legal authority to accept public funds deposits, however many governmental entities are limited in their ability to deposit public funds in credit unions. The Association supports efforts to grant credit unions unlimited access to public funds deposits on an equal basis with other financial institutions.

Regulatory Accountability & Transparency.

• The Association supports a transparent, conservative and accountable process for determining regulatory budgets, with the understanding that the costs of regulation are an expense to credit union members.
• The Association encourages the NCUA to adopt an overhead transfer fee process that gives credit unions meaningful input on the means for determining regulatory oversight costs associated with insurance functions, as opposed to costs associated with safety and soundness functions.
• The Association opposes the sweeping of funds from regulatory accounts to the general fund, as this reallocation represents an additional cost to credit unions and undermines the effectiveness of the regulator.

Regulatory Environment.

• The Association supports the maintenance of a healthy regulatory environment designed to protect credit union safety and soundness.
• The Association strongly supports the maintenance of both a distinct state and federal credit union regulator imbued with the authority to promulgate rules and guidelines that account for the unique aspects of credit unions as cooperative, member-owned financial institutions, even if the regulator is part of an overall financial regulatory structure.
• The Association supports efforts to reduce the regulatory burden on the credit union industry and legislative or regulatory efforts that aim at streamlining and simplifying regulatory requirements without significantly affecting consumer interests.

Self-Determination.

The Association supports each credit union's efforts to fulfill its own mission and supports legislation or regulation that facilitates credit union self-determination.

Supplemental Capital.

The Association supports the idea of supplemental capital and urges the adoption of legislative changes that would allow all credit unions to accept supplemental capital and count it toward regulatory net worth requirements.

Systemic Risk.

The Association recognizes that very large financial institutions may pose systemic risk to the U.S. economy. The Association believes that credit unions do not pose this same systemic risk because of their more restrictive regulatory environment, risk-averse nature, and because of their lack of aggregate size in relation to total U.S. financial institution assets. The Association opposes the application of legislative and regulatory requirements designed to address systemic risk on credit unions.

Taxation.

The Association supports efforts to maintain the credit union industry's historic tax exemption as not-for-profit, financial cooperatives.

Third Party Examination Authority.

The Association recognizes that credit unions may rely on outside service providers for mission-critical functions and supports regulatory oversight concerning a credit union’s due diligence efforts to appropriately select its service providers. The Association does not support a credit union regulator’s authority to directly examine third-party service providers because the appropriate examination of these third parties is generally outside of a credit union regulator’s expertise and experience.

Trade Names.

Credit unions should have the power and ability to operate under the trade name of their choice, recognizing that it’s not the name, but their structure that makes credit unions distinct.

Volunteer Liability. 

The Association recognizes that the Northwest credit union system is made successful, in part, by credit union volunteers. As such, the Association supports legislation designed to protect volunteers against potential liability.