Local credit unions seem resigned to the National Credit Union Administration?s rule restricting some credit union service to the underserved.
“You know, on the one hand, the banks are criticizing credit unions for not serving the underserved, and then they come along and want to block us from adding those groups to our field ofmembership,” said Lois Profili, CEO of First Eagle FCU in Baltimore City. “They can?t have it both ways.”
In the controversial rule change, the NCUA prospectively revoked the authority of community-based and single occupational group, federally insured credit unions from adding outside, low-income areas to their field of membership.
The board also required that credit union service centers for existing low-income areas actually be inside the area instead of adjacent to it.
NCUA had granted the underserved area addition authority to these two charter types, but this came under dispute last year. Bankers sued over the issue while simultaneously criticizing credit union service to the underserved.
“I was disappointed in [the NCUA board?s decision],” said Dave Gilbert, board chairman of Edgewood?s Aberdeen Proving Ground FCU.
“I can understand why they reacted the way they did [given] pressure … from the [bankers] … but our goal is to make credit unions available to [all] consumers.”
