The Community Bankers Association of Illinois (CBAI) thanks Senator Orrin Hatch (R-UT), Chairman of the Senate Finance Committee, for questioning credit union expansion of powers and tax exemption in a letter to the National Credit Union Administration (NCUA). The three-page letter highlighted the limited reasons for Congress granting credit unions federal tax exemption (i.e., serving individuals of modest means and with a common bond), estimated the value of the tax exemption for 2017 at $2.9 billion, and stated that the loss of tax revenue requires close government oversight to ensure the limited purpose is being properly fulfilled. The letter specifically questions actions taken by NCUA that have relaxed field of membership requirements and lifted limits on other activity including business lending and other services that seem to go beyond the scope of their original mission. Read Senator Hatch’s Letter to the NCUA.
The letter concluded with a request for information and data, to assist Congressional committees in understanding the NCUA’s oversight of credit unions. CBAI looks forward to the NUCA promptly responding to Senator Hatch’s request for this important information to guide increased Congressional scrutiny of the unwarranted tax-exemption for credit unions.
February 6, 2018