NORFOLK, Va. — Congresswoman Thelma Drake (R-Va.) applauded credit unions for their work with the military during her keynote address at NCUA's Access Across America Economic Empowerment Summit.
Drake, whose district includes Naval Station Norfolk, serves on the Armed Services Committee. "For this area, that's a very important appointment," she said. She also expressed her wish to serve on Financial Services.
She explained a few things about credit unions that she said she had just learned recently. "Some of you have members actually costing you money. That's a business model you don't see often," Drake commented. She also discovered credit unions' fields of membership restrictions and financial literacy efforts.
Recommended For You
Drake noted that Congress has many of the same goals as credit unions in ensuring a fair and competitive marketplace, preventing undue regulatory burden, and protecting consumers from predatory lending. Drake pointed out that before recessing until after the elections, Congress passed the Department of Defense reauthorization that included anti-predatory lending provisions for the military, who regularly find themselves in the crosshairs of predatory lenders. The legislation takes a number of steps, she said, including prohibiting rollovers of payday loans and prepayment fees. Drake also highlighted a bill approved by Congress that banned certain insurance sales and practices that are no longer offered to the general public. Payday lenders are common culprits that help lead young military personnel into a dangerous spiral of debt. "When dealing with that kind of debt…it can be a national security issue," Drake stated. The congresswoman noted that clearances can be revoked for severe indebtedness and financial worries can distract those deployed overseas from their mission. She added that she is sensitive to avoid harming legitimate lenders while going after the less scrupulous ones. –[email protected]
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
