Tuesday, April 9, 2024

The Eclipse Of North Carolina Credit Unions? - Part 3

  https://e3.365dm.com/23/07/768x432/skynews-fake-shark-fin_6211117.jpg?20230707100234... "minor" shark bait?

 To: The North Carolina Credit Union Commission

  April 9, 2024

I am Jean Blaine— a long time member and advocate of credit unions.

Most well informed credit union members are opposed to House Bill 410.

The Carolinas’ Credit Union League misled our legislators and the public about the content of this bill. Last April your Administrator spoke in support of this misrepresentation before the Legislature.

The bill was sold as nothing more than “minor updates” to the law. Much ado was made about trivial bits in the bill, such as: “Financial deserts” - which are principally in the Dismal Swamp and Great Smoky Mountains Park; Safety Deposit Boxes and Electronic Funds Transfers -which credit unions have provided members for decades!; and parity with the Federal Credit Union Act - part of NC credit union law since 1975.

The crucial changes to the law - with major repercussions to the very definition of  “credit union” - were unmentioned by the pushers of H410. Doing away with the common bond was not discussed.  Nor was the move by state chartered credit unions into the North Carolina bankers’ turf of full blown commercial lending and business ventures.

These are not minor changes to “update” the law.

The bill replaces common bond with “Open field of membership”— anyone, anywhere will be allowed to join our credit unions. Corporations from anywhere can become members.

This bill will take dollars out of the pockets of NC workers and their local communities. The bill allows credit unions to take our dollars and invest in commercial real estate and corporate lending—anywhere— outside of North Carolina. This is already occurring.

This bill will shift power away from the member to a corporate governance structure, unaccountable to the membership. This is already occurring.

Passage of this bill will see local jobs lost and moved out of state. This is already occurring.

Out-of-state members? Corporate members?  United at a credit union by a common bond? Membership in such a circumstance does not exist.

The credit unions will remain credit unions only because they pay no taxes.

 H410 is a boondoggle. 

North Carolina resources, assets and jobs will flow out of state. Our credit unions’ focus will no longer be on serving people of modest means. This is already occurring.

For over 100 years credit unions have helped the people of North Carolina buy cars, houses, educate children, navigate divorces, job losses and all the financial misfortunes life can throw at folks.
Keep our focus on the 3 million members who live in all 100 North Carolina counties.

Let the bankers run the banks.

Does the North Carolina Credit Union  Commission support the endorsement of H410 by your Administrator?


1 comment:

  1. Waiting to hear if they come back and respond. Have serious doubts!