State-chartered credit unions in Illinois are still reaping the windfall of returned examiner fees now totaling $11 million as a result of a court case settled eight years ago, according to the Illinois Credit Union League.
The league said this week the case and the rebates date back to 2004 following actions taken by the administration of former and now imprisoned Gov. Rod Blagojevich to seize examiner fees for general budget purposes.
“Between an initial cash settlement of $6.2 million, the regulatory fee holidays or credits realized in four of the past 12 quarters totaling $2.7 million, and a rate reduction of $2.1 million in regulatory fees paid to the DFI, Illinois state-chartered credit unions to date have realized a cumulative benefit of approximately $11 million” said a formal league statement.
The latest fee credit is the result of the remaining fourth quarter totals due credit unions after they enjoyed a total holiday through carry-forward provisions in the settlement, said the league.
The settlement, also impacting community banks, was part of a 2009 law signed by Gov. Patrick Quinn which implemented the cash credits.
Stephen Olson, ICUL executive vice president and general counsel, noted also the 2009 law codified rate reductions on regulatory fees starting Jan. 2009 resulting in a $700,000 per-year reduction during the past three years.