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  • Issues & Advocacy

    Tech CU recently conducted a survey asking members about the issues below. Click here to see the results.

    Read about the latest legislative hot topics impacting credit unions here

    ISSUE 1: Using Tech CU Member Funds to Support Bailouts of Failing Credit Unions

    For the last four years, the regulators who oversee credit unions have required federally insured credit unions — like Tech CU — to pay billions of dollars in insurance assessments to bail out troubled and failing credit unions (to date, Tech CU alone has had to pay $10.3 million of your capital). There are nearly 400 troubled credit unions that may need bailouts, and the Tech CU Board is concerned that these assessments will continue unabated.

    What thought leaders are saying about the assessments:

    “The Darkness Spreads Over Credit Union Land: $50B Unaccounted For,”     
    An account of the NCUA’s handling of the $50 billion failure of the Corporate Credit Unions, the lack of transparency in the process, and the impact of its actions to natural person credit unions and members, written by Chip Filson, a nationally-recognized leader in the credit union industry.

    “Credit Unions paying for risky behavior of a few,” Bank Tracker on     
    A review of how credit unions’ profitability will be impacted by the failure of the Corporate Credit Unions.

    “NCUA Audit Stokes an Uproar,” Credit Union Times     
    An assessment of the NCUA’s handling of and lack of transparency in the Corporate Credit Union failures.


    ISSUE 2: Arbitrary Caps on Member Business Loans

    Congress has imposed a ceiling on the amount of member business lending that a credit union can do (12.25% of our total assets). Tech CU will likely hit this cap in the first half of 2014. These loans help diversify our portfolio, which makes Tech CU stronger and more secure. They also help our members and our community by supporting entrepreneurial activity, creating jobs and increasing the tax base.

    The credit union industry has been trying for over a decade to get a bill passed that would increase business lending limits for credit unions  a move that is supported by the National Credit Union Association (our federal regulatory agency).  Increasing these limits is viewed as key to helping credit unions diversify, thrive, and serve their members even more effectively. Tech CU  emailed you a request in 2012 to help support a bill in Congress that would increase the limits — but that bill was never put to a vote. New bills are now before both the House and the Senate but are likely to never come to a vote either. The fight will likely continue in 2013 and beyond.

    What thought leaders are saying about business loan caps:

    Letter of Support to Technology Credit Union, Congresswoman Anna Eshoo (CA-14)   
    A letter from Congresswoman Anna Eshoo, expressing her support in raising the business lending cap on credit unions from 12.25% to 27.5%.

    “New: Credit Union MBL Bill is Reintroduced,” Newsletter    
    An update on the status of Bill H.R. 688 – legislation that would raise the credit union member business lending cap from 12.25% to 27.5% of assets.

    “MBL Hearing: Senators Remain Skeptical,” Credit Union Times    
    A recap of NCUA Chairman Debbie Matz’s testimony to the Senate Banking Committee at which she indicated that raising the cap on member business loans would improve credit unions’ risk environment and create more jobs.


    ISSUE 3: Ending Non-Profit Status/Taxing Credit unions

    Powerful interest groups in Washington D.C. are trying to eliminate the non-profit status of credit unions without giving us the offsetting ability to do more member business loans. If these interest groups are successful, Tech CU's profits would be taxable, thus reducing the retained earnings that we have available to provide you with new technologies, services and branches.

    What thought leaders are saying about the taxation of credit unions:

    “ABA targets tax exemption for 2013, CUNA primed to protect,” Newsletter     
    A discussion about the American Bankers Association's “chief” 2013 goal of changing or eliminating the credit union federal tax status.

    “Tax Fight Looms in next Congress,” Credit Union Journal     
    A discussion regarding the anticipated fight in Congress over taxes and tax reform – and the potential impact on the credit union industry.


    ISSUE 4: Protecting Member Privacy

    Several attempts were made in 2012 to force Tech CU to provide your personal information to other members and third parties who wanted to communicate directly with you — without your permission. The Board took a hard line in opposition to this demand. In fact, we filed (and won) a lawsuit against one group in order to prevent the release of your private information.


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