The coordinator of an ad hoc, Tennessee-based group of credit union CEOs and managers with beefs about NCUA and “overreach” by federal agencies made clear Thursday the group’s motives: get the attention of Congress in a hurry.
“What has happened to credit unions over the last two years is simply incredible and we need something to happen,” invoked David Proffitt, president/CEO of the $136 million Alcoa Tenn FCU and chief spokesman for the so-called Credit Union Committee on Declaration of Grievances.
Proffitt, who helped “carefully write” a seven-page manifesto or declaration of complaints about policies of NCUA and the agencies, said the group’s petition currently has 32 names, most from small CUs in Tennessee, North Carolina and Ohio, but that more may be added.
The declaration, he said, has been sent to the House Financial Services Committee and the Senate Banking, Housing and Urban Affairs Committee in hopes Congress will act to halt practices impairing CU viability.
“Look, we’ve never been about trying to conduct something like this in the media seeking out lots of publicity but our group did want to convey a strong message about the huge cost we are enduring,” said Proffitt.
He pointed to the NCUA’s long-term assessment schedule “which means 27% of our net income over the next 10 years–a third of our income is gone.” And that, he said, was “to help pay for the NCUA negligence in overseeing the whole corporate network.”
Proffitt compared the group’s mission to that of the colonists, as “we have written a declaration we are submitting to King George.”
The CU executive said the group’s gripe is not just with NCUA but the raft of agencies bringing on excessive regulation, creating “unintended consequences and smothering member/taxpayers” in such areas as consumer rights and loan notice compliance. On interchange, the Durbin Amendment to Dodd-Frank “will further drain the monies of members in the name of consumer protection,” said Proffitt, citing the declaration’s language.