Serving The Underserved In North Carolina: The "H.187 CU UpDate" Ducks Accountability..

  A reasonable request.

✅ Credit unions confront a surge of questions over accountability, transparency, and credibility - and not just in North Carolina!

Let's try a slightly different take on H.187 today. Here is the key talking point - those "financial deserts" - being used by the CCUL to sway legislators opinion: 

😎 Source: BNC [link] - " The Carolinas Credit Union League (CCUL) is pitching the legislation [H.187] as a way to restore financial services to economically distressed communities vacated by traditional banks. It’s seeking looser requirements for people to join nonprofit credit unions, creating opportunities for expansion into under-served “banking deserts” and serving people living at or below the poverty line, according to Dan Schline, the league’s president."

😎 “Credit unions have been serving North Carolinians for more than 100 years," added CCUL President and CEO Dan Schline. "This bill reflects our continued advocacy for expanding financial access where it’s needed most."

Here's the rub: Every citizen of North Carolina, in every North Carolina county and community, whether living above or below the federal poverty line is already eligible to join multiple credit unions - and has been able to join for years! 

😎 Why do these "financial deserts" continue to exist in North Carolina? Why haven't credit unions stepped up to solve the problem?

Here's how credit union critics challenge our credibility: "Although credit unions are supposed to focus on people who are “under-served” and of “modest means,” they are not required to collect data or report on their progress in meeting this mission. Studies show that credit unions increasingly serve upper-income ." - The Tax Foundation (2024).

✅ Would the Carolinas' Credit Union League have any problem with adding a requirement within H.187 for credit unions to open and maintain branches to serve these " financial deserts"? It would be useful for credit unions to also report annually on the progress made to resolve the "financial desert" problem! Okay?

  Why duck? Anything at risk from a little "put up or shut up"... other than our credibility?   

N.C. Credit Union Laws And Regulation: Is "H.187 - CU UpDate Act" Looking To The Future ... Or Just "SOSO"**?

✽ North Carolina state-chartered credit unions are monitored and regulated  principally by two agencies: 

   

   ... the legal regulator under N.C. law.

  

    ... the Federal insurance regulator.

✅ Under the new Administration in D.C, the NCUA recently "welcomed several surprise visitors":

"CUToday [link] : "ALEXANDRIA, Va.—The Department of Government Efficiency (DOGE) entered NCUA headquarters Thursday, CUToday. info has learned. As CUToday has reported, the Trump Administration has charged every government agency with reducing expenses, and has been discussing combining federal regulators."

✅ CEO Dan Schline of the Carolinas Credit Union League (CCUL) theatrically continues to yell "🔥 Fire 🔥" in the NC Legislature that "North Carolina CU statutes have not been updated since 1975" (not precisely true, but makes great headlines!) In fact, the first four pages of the nine page  H.187 bill involve opaque scribblings increasing fees & penalties, reporting requirements and expanded authority for the Administrator over credit unions [here take a look].  Is more regulation the "answer" for North Carolina at this time? Is that why North Carolina credit union laws need an "Update"?

😎 You might want to take a look at the just released 2024 Annual Report of the CU Administrator [link]. It contains some interesting information. The total number of state-chartered credit unions has plummeted to 29 (as a result of merger and liquidation). Six of the 29 credit unions suffered a financial loss in 2024 (none major nor of concern).  The CU Division appears to have at most 10 employees to supervise and examine state-chartered credit unions with $59 billion in assets - including the $53 billion at SECU.

In the past, North Carolina had three financial institution regulators - the Commissioner of Banks, the Savings and Loan Division, and the Administrator of Credit Unions. When mergers and liquidations resulted in the decline in the number of S&Ls, the S&L Division was merged into the Commissioner of Banks. 

That combination of agencies strengthened the expertise and examination resources available, created greater efficiencies by consolidating duties, and reduced the pace of escalating costs.

😎 Should our Legislature take a deeper look - before adding on greater fees, penalties and control authority - at what type of "CU Update" is really needed?   

... after all credit union laws "haven't been updated since 1975".

** "SOSO" - Same Old ,Same Old.