Credit Union Bill Opens New Doors for Consumers

WASHINGTON, D.C. -- When President Clinton signed the Credit Union Membership Access Act on August 7, 1998, tens of millions of Americans regained the freedom to decide where they save and borrow money. One year later, there are now 1 million new potential credit union members, and 63 million working Americans are no longer locked out.

"The Credit Union Membership Act has proven itself in the past year," said Daniel A. Mica, president and CEO of the Credit Union National Association (CUNA). "This bill has helped ensure that more than 60 percent of the work force now has access to a not-for-profit cooperative alternative to banks."

Over the past year, federal credit unions have once again been able to reach out to new groups of members -- something they had been barred from doing by a banking industry lawsuit upheld in a 5-4 Supreme Court ruling on Feb. 25, 1998.

Since passage of the Credit Union Membership Access Act, over 10,000 new groups have joined credit unions. The new groups include low-income communities and small businesses that had been locked out by the banking industry lawsuit. The average size of these groups is about 90 employees.

A Michigan State University study shows that small business employees generally earn lower salaries and fewer benefits than average American workers. Credit union membership will offer them many benefits: higher savings rates, lower loan rates, and lower fees on all products ranging from ATMs to youth accounts.

To support financial service for consumers at all income levels, credit unions are rolling out a new national brand campaign: "America's Credit Unions: Where People are Worth More Than Money." This brand strategy emphasizes that "credit unions care about people, not just the bottom line," said Mica.

Meanwhile, the bankers have not changed their strategy. The richest bankers associations in Washington are still attacking credit unions through lawsuits and legislative threats.

Credit unions are fighting back with new programs to reinforce last year's striking demonstration of grassroots strength. Examples include:

"Hike the Hill" -- State credit union leagues are encouraging credit union staff and volunteers to visit Capitol Hill at least twice a year for private meetings, special events and fundraisers.
Delegate Program -- Credit union people are becoming more involved in local and national politics by entering nominations for voting seats at their party's political conventions.
Campaign Schools -- Credit union people are learning what it takes to run a campaign through intensive two-day crash courses.

"The goal is to weave credit unions into America's political future," Mica concluded. "We want to be in a strong position to preserve Americans' financial freedom."

With its network of credit union leagues in all 50 states, the Credit Union National Association serves more than 90 percent of America's credit unions, where people are worth more than money. America's credit unions are not-for-profit financial cooperatives owned equally by 78 million depositors. Over the last decade, credit union membership has grown at an annual rate of about 2.6 percent.

There are several ways you may be eligible to join a credit union. These include employee groups, community groups, civic associations, churches, military service, and family members. To check your eligibility, log on to http://www.cuna.org/data/consumer/whatis/join/sixways.html or call 1-800-358-5710.

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