U.S. Capitol Building
The Defense Credit Union Council (DCUC) is stepping up its advocacy on two fronts: Bolstering the Community Development Financial Institutions (CDFI) Fund and modernizing consumer financial privacy laws to reflect today’s digital marketplace.
Earlier this week, DCUC commended a bipartisan group of senators for introducing an amendment to the National Defense Authorization Act (NDAA) that would expand the CDFI Fund. The amendment, led by Sens. Mark Warner (D-Va.), Steve Daines (R-Mont.), Mike Rounds (R-S.D.) and Tina Smith (D-Minn.), would extend the CDFI Bond Guarantee Program, lower the bond threshold to expand access and permanently authorize the Native CDFI lending program. It would also mandate annual testimony from the Treasury Secretary to improve oversight.
“Credit unions are often the only financial lifeline in underserved communities, including military bases, rural towns, and inner-city neighborhoods,” DCUC President/CEO Anthony Hernandez said. “Strengthening the CDFI Fund ensures these institutions can continue to serve families, small businesses and servicemembers who are too often overlooked by larger banks.”
At the same time, DCUC has sent a letter to House Financial Services Committee leaders Rep. French Hill (R-Ark.) and Rep. Andy Barr (R-Ky.), urging updates to the Gramm-Leach-Bliley Act (GLBA). The Council called for modernization, not replacement, of GLBA, advocating a single, preemptive federal privacy standard to prevent a confusing patchwork of state laws.
“Our members are committed to safeguarding the financial well-being and sensitive data of the Americans who serve our nation,” Hernandez wrote. “Updating GLBA to cover today’s marketplace, while ensuring consistency and accountability for all providers, is the best way to protect consumers and strengthen our financial system”.
DCUC’s recommendations included clarifying outdated definitions in GLBA, holding fintechs and data aggregators to the same standards as credit unions, supporting shared accountability with third parties and promoting reasonable data retention practices.
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