SALT LAKE CITY -- Frustrated by the state's restrictive state law on business lending and field of membership expansion, the Utah League of Credit Unions is now looking at a ballot initiative perhaps this fall to provide relief.
The concept of a public referendum "is speculative" and in the talking stage, stressed Scott Simpson, the president/CEO of the league. The last five years Utah CUs have tried to overcome a legislative clampdown on business loans and field of membership expansion, the result of a two-decade old bitter legislative and court battle with the banking lobby over CU taxation.
In comments appearing in the local media, Simpson said any public referendum might also contain consumer-friendly provisions putting caps on return check fees, ATM surcharges, and payday loan interest rates. It also would prohibit financial institutions from refusing to honor unused gift cards within a year of purchase.
"The election this fall is an option but it is bit premature to speculate whether we're at that point," said Simpson, who told the Salt Lake Tribune the consumer friendly provisions in any ballot would help remind voters that legislators rejected these provisions in the first place.
"We are looking for any opportunity to roll back the punitive measures of our state charter," Simpson said. "We are optimistic that the state legislature will help with that. But at the end of the day, if it doesn't help, the only other option is the people."
A league nemesis, Howard Headlee, president/CEO of the Utah Bankers Association reacting to the news account and making apparent reference to a banker argument that changing the law hurts school funding, told Credit Union Times, "If you were to learn one thing from the most recent public referendum, it is that Utahans are passionate about education. I find it highly unlikely that they would support an initiative that would divert school funds to subsidize larger and larger business loans."
--jrubenscut@aol.com
