Cornerstone wraps up GAC with Hill visits

As the GAC conference wound down, the 5,700 credit union attendees geared up to meet with lawmakers. More than 300 Cornerstone leaders participated in about 60 Hill visits on March 1–2.

Jim Phelps, Cornerstone’s EVP/chief advocacy officer, said this was a good time to be in Washington, D.C., talking about the credit union difference, as the attacks on the credit union tax status have bubbled up from our competitors.

“We can’t let anyone define who we are as a system; we have to tell that story,” he said. “Silence equals acquiescence, and if we’re not telling our story to lawmakers, our competitors are going to tell it for us.”

Legislator visits highlighted the great work credit unions have been doing and gave leaders a chance to educate lawmakers on the issues they face, such as interchange.

The legislative priorities shared with elected officials can be seen in the following sections.

Advancing communities

America’s credit unions remain focused on improving the financial well-being of their more than 130 million credit union members across the country and ensuring every person has complete, affordable access to the knowledge and tools they need to make confident and smart financial decisions.

Advocates were encouraged to tell lawmakers what it means to be a tax-exempt entity and focus on the structure of credit unions. For example:

• Credit unions return $13.3 billion in annual savings to members and $5.2 billion in annual benefits to non-members through local market presence.
• With no outside stockholders, credit unions can leverage their tax status, saving members $13.5 billion annually.
• Credit unions DO pay taxes and account for nearly $29 billion in local, state, and federal taxes annually.
  

Protecting consumers’ credit cards

Consumers rely on credit cards to build credit and gain access to funds that otherwise may not be immediately available. Interchange fees cover the cost of fraud detection, credit monitoring, and fraudulent purchase protection.

In the last Congress, the Credit Card Competition Act was introduced by Sen. Dick Durbin (D-Ill.) and Sen. Roger Marshall (R-Kan.). Rep. Lance Gooden (R-Texas) introduced the House version. This bill would extend interchange regulations to credit cards.

While we were able to meet with Marshall and explained our concern with the interchange issue, Cornerstone CEO Caroline Willard scheduled an additional meeting with Marshall’s staffer to provide a deeper dive into how interchange will affect financial institutions of all sizes, including credit unions.

Sen. John Cornyn (R-Texas) told our delegation that he knew interchange rules were important to credit unions.

“I opposed the Durbin amendment when it was debated during Dodd-Frank and will continue to oppose any efforts to expand it,” he said.

Safeguarding assets and information

Confusing data privacy laws and an uncertain digital payments environment leave millions of people and businesses open to attack by fraudsters and rogue state actors. A strong national standard that preempts state laws would close glaring loopholes that hackers exploit to steal consumers’ data.

Arkansas credit unions provided information to Sen. John Boozman (R-Ark.) about data privacy concerns and the need for a national standard to protect consumers. He agreed that cybercrime is a problem and something that needs a closer look.

Empowering consumers to manage their finances

Consumers turn to overdraft protection as a flexible option during financial distress. This opt-in service sometimes serves as a lifeline and ensures members do not turn to predatory payday lending. It’s important to show how credit unions offer these products in a responsible manner and frequently adopt changes to overdraft programs to secure the financial well-being of their members.

The Texas credit union leaders explained to Rep. Lloyd Doggett (D-Texas) that opt-in services like overdraft help members in stressful times and eliminate the need to use alternative services like payday lenders.  

“When you look at the choices members are forced to make, it’s tough,” they said, “For example, a single mother at the grocery store who is wondering, ‘Can I pay for groceries or not?’ It gives them the ability to purchase groceries with a service they have chosen to use.”

Right-size regulation for credit unions

Rules affecting credit unions must always consider our unique structure, requirements, and the needs of our members. Regulatory changes should focus on commonsense efforts and fully consider the impact on all consumers. We asked our elected officials to tailor policymaking driven by sound data without subjecting not-for-profit credit unions to the same regulatory regime as for-profit Wall Street Banks. And we asked them to modify the CFPB’s leadership and funding structure.

Crashers weigh in on GAC

Four professionals from the Cornerstone region “Crashed” the GAC, as part of Filene’s Crasher program:  

• Katie Beach, community relationship manager, Azura Credit Union, Kan.
• Camille Stephenson, finance leader, Mazuma Credit Union, Mo.
• Megan Johnston, AVP/manager call center, Tinker Federal Credit Union, Okla.
• Cameron Newfarmer, project manager, Texas Trust Credit Union, Texas
  

While Crashers attend exclusive educational and networking sessions, general GAC sessions, and Hill visits, they said the connections they made and insights into the industry are what made their time at GAC valuable.

“Each presenter had a purpose and voice, and being able to hear that passion was eye-opening for me,” said Camille Stephenson, finance leader at Mazuma CU. “The key theme was community, and it was nice to hear how each individual within my Crasher program and at GAC was able to discuss how they’re impacting their communities.”

Megan Johnston, AVP/manager call center at Tinker FCU, shared how much she appreciated her fellow Crashers and learning the impact credit unions have on members and communities.

“We are making change in our communities, guiding members to be financially stronger, and have the unique ability to work together while we do it,” she said. “I walked away with a greater appreciation for this industry, the people I work with, and the members I serve.”

Katie Beach, community relations manager at Azura CU, enjoyed the DEI breakout sessions, learning ways to better serve members, and discussing ideas with her coworkers.

“Attending the GAC was a great opportunity for me to expand my knowledge [of the industry], and I left the GAC feeling empowered,” she said. “I have so many thoughts and ideas on how I can help make an impact in the credit union movement.

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