Credit union enlists 'army'
America First seeks their advocacy for credit unions
In the credit union's December letter to members, America First Vice President Sheryl Cox writes, "Bankers are working at the local, state and national levels to tax credit unions and their members. Their strategy aims to eliminate their competition and harm consumers by charging high fees, imposing high interest rates, and offering low returns on savings products. You can help fight the banks by becoming a member advocate."
The battle, which has been heatedly fought on legislative, courtroom and public relations fronts, warmed up again in November after the American Bankers Association and Utah Bankers Association filed a lawsuit against the National Credit Union Administration, challenging the NCUA's decision to grant additional fields of membership to certain Utah credit unions, including Ogden-based America First.
The bankers claimed the NCUA had begun allowing credit unions to add geographic areas to their fields of membership — without regard to location or charter — communities that are defined as "underserved areas" in the Federal Credit Union Act. As a result, the bankers alleged they have been "subjected to unlawful competition in their business or potential business, which competition would not exist but for the NCUA's approvals."
America First's member advocate group isn't new — Cox told the Deseret Morning News it was initiated some six or seven years ago as members concerned about the growing tensions between credit unions and banks called in asking how they could help.
Member advocates are America First members who are "interested in receiving information on an ongoing basis, communication about government affairs and legislation — positive and negative — affecting credit unions," Cox said. "This is a group who will react to a call to action if we need help, and who are interested in what's happening federally and statewide."
The "call to action" typically involves contacting legislators to advocate or voice concern about particular proposals, Cox said. Members are not asked to give money.
"These are just good, long-time members who are deeply concerned about changes that impact their credit union, and making sure they have a say-so," Cox said. "Because credit unions structurally are member-owned cooperatives, these are people who have a vested interest in what happens at their credit union, and to credit unions across the country."
As of the end of October, the member advocate group had 18,925 members, Cox said. The credit union currently has 387,356 members.
Howard Headlee, president of the Utah Bankers Association, said Friday that "They (America First) write these articles in hopes of turning the most radical element of their membership into political weapons. This is the only option they have left.
"I suspect their more astute members can connect the dots and realize that maybe, just maybe, their credit union newsletter is not telling the whole story," Headlee said. "Regardless, this issue will be decided in court, far from the influence of their 'member advocates.' "
E-mail: jnii@desnews.com
You can be the first to comment on this story.