Newsroom

December 09, 2011

CFA backs CU tax exemption, MBL

NAFCU President Fred Becker on Friday extended thanks to the Consumer Federation of America's board of directors for its statement in support of the nation's not-for-profit credit unions and their "critical and irreplaceable" role in ensuring consumers access to high-quality, low-cost financial services.

"This statement comes at an important time for consumers and the nation's economic recovery as the true value of credit unions gains ever-increasing recognition," said NAFCU President Becker. "NAFCU applauds the CFA's board for this demonstration of support for the nation's credit unions and for ensuring all consumers access to credit union membership."

The CFA board, meeting Nov. 30 in Washington, was unanimous in adopting the statement, which also notes the group's recognition that credit unions must be able to operate efficiently and effectively. To that end, it said the following principles are key to credit union survival:

  • maintaining the credit union tax exemption;
  • keeping the cooperative structure of credit unions;
  • recognizing that regulations appropriate for for-profit financial institutions are not always appropriate for not-for-profit credit unions; and
  • improving the ability of credit unions to lend prudently, including having good access to a viable secondary market and to capital, and offering business lending to their members.

"At a time when consumers are increasingly critical of for-profit financial institutions, it is important for not-for-profit, member-owned credit unions to survive and prosper and for all consumers to have access to credit union membership," said CFA Executive Director Steve Brobeck.


Consumer Federation of America release