Recent Activity
Department of Defense (DoD) Leases
Credit unions enjoy nominal lease space in federal buildings and on military bases from a provision in the Federal Credit Union Act. Military banks have been trying for years to get their own nominal lease provision, but NAFCU has been successful in protecting credit unions’ nominal leases and blocking language that would require DOD to grant similar access to banks. The FY 2023 National Defense Authorization Act (NDAA) once again did not include any problematic provisions on leases.
The FY 2022 NDAA included a request for DOD to study access to financial services on military installations in response to banker claims that lease costs were driving banks away and harming servicemembers. The report, released in August 2022, confirmed that servicemembers have consistent access to financial services from both credit unions and banks, supporting NAFCU’s position that there is no need to allow for-profit banks to operate rent-free on military bases.
Military Lending Act
In September 2022, California enacted the Military and Veteran Consumer Protection Act of 2022, which attempts to prevent lenders from using certain exemptions in the federal Military Lending Act related to loans for the purchase of a vehicle or other personal property that are secured by the vehicle or property being purchased. NAFCU’s Regulatory Compliance Blog analyzed this issue in depth.