Advocacy in Action: The Need for Advocacy: Why Every Credit Union Must Engage—From CEO to the Teller

Protecting the Future of Credit Unions Amid Growing Challenges

Advocacy Must Be Job One
Credit unions have long stood as pillars of financial security, providing service-driven, not-for-profit alternatives to traditional banks. However, today’s credit union industry faces an unprecedented wave of legislative, regulatory, and competitive threats that could fundamentally alter our ability to serve our members. From the CEO to the frontline teller, advocacy is no longer optional—it is a necessity for survival.

The Growing Threats to Credit Unions

1.  The Threat of Bank-Led Attacks on Credit Union Tax-Exempt Status
Challenge:

• The banking industry is aggressively lobbying to strip credit unions of their federal tax exemption, falsely claiming we have an unfair advantage.
• If successful, this move would raise costs for members, reduce the ability to offer competitive rates, and fundamentally alter our not-for-profit model.

Advocacy Response:

• Every credit union leader and employee must educate lawmakers and the public on the member-owned structure of credit  unions and the direct benefits this tax exemption provides to millions of Americans.
  

2.  Community Reinvestment Act (CRA) Expansion to Credit Unions
Challenge:

• Some lawmakers and regulators are pushing to apply CRA rules to credit unions, despite the fact that credit unions already serve low-income and underserved communities at a higher rate than banks.
  
• This would impose unnecessary regulatory burdens, drive up compliance costs, and divert resources from member services.

Advocacy Response:

• We must ensure Congress and regulators understand that credit unions are inherently mission-driven and do not need bank-like regulations imposed upon them.
  

3.  Regulatory Overreach by the Consumer Financial Protection Bureau (CFPB)
Challenge:

• The CFPB continues to propose sweeping regulations that ignore the not-for-profit mission of credit unions, treating us like large banks.
  
• Recent proposals on overdraft protection, interchange fees, and lending restrictions would hamper credit unions’ ability to serve members responsibly.
  

Advocacy Response:

• We must support reforms to the CFPB that recognize credit unions’ unique structure and ensure that regulations support, not hinder, financial inclusion.
  

4.  NCUA’s Budget and Overreach
Challenge:

• The National Credit Union Administration (NCUA) continues to expand its budget and regulatory footprint, placing additional costs on credit unions without demonstrating the need for increased oversight.
  
• The push for new, burdensome staffing and regulations raises concerns about whether the NCUA is acting within its mandate.
  

Advocacy Response:

• Credit unions must actively engage with NCUA leadership and Congress to ensure the agency operates efficiently and responsibly while preserving the safety and soundness of the industry.
  

5.  Efforts to Undermine Military and Veteran Financial Services
Challenge:

• Certain legislative and regulatory proposals could disrupt on base credit unions, reducing access to affordable financial services for military families.
  
• Restrictions on VA home loans, such as increased appraisal requirements and realtor opposition, could weaken homeownership opportunities for veterans.
  

Advocacy Response:

• DCUC and defense credit unions must protect the “One Bank, One Credit Union” policy and advocate for veteran-friendly lending policies.
  

6.  Attacks on Credit Card Interchange and Member Benefits
Challenge:

• The Credit Card Competition Act (CCCA) would force credit unions to process transactions through multiple networks, increasing fraud risk and reducing revenue that funds member benefits.
  
• The loss of interchange revenue would lead to higher fees and fewer rewards for members.
  

Advocacy Response:

• Every Credit Union must actively oppose CCCA and educate lawmakers about its harmful effects on financial security, fraud prevention , and member benefits.
  

7.  Retailers’ Push for Weaker Data Privacy Protections
Challenge:

• Retailers and big-box stores are lobbying to shift liability for data breaches onto financial institutions, while weakening their own data security responsibilities.
  
• This would increase fraud costs for credit unions, leaving members vulnerable.

Advocacy Response:

• Credit unions must demand stronger national data security standards for retailers, ensuring they are held accountable for breaches.
  

Advocacy Is Everyone’s Job—From CEO to Teller
Advocacy is not just for CEOs and government affairs professionals—it must be a core responsibility at every level of a credit union:

• CEOs & Executives: Engage with lawmakers, testify before Congress, and ensure advocacy is a strategic priority.
  
• Board Members: Educate themselves on key policy issues and mobilize networks to support credit union-friendly legislation.
  
• Managers & Staff: Share advocacy messages with members and encourage participation in grassroots efforts.
  
• Tellers & Frontline Employees: Serve as the first point of contact for members, helping them understand how legislation impacts their financial well-being.
  

How Every Credit Union Can Take Action

1. Engage with DCUC——DCUC is leading the charge on defending military and veteran credit unions. Your support is critical to our success.
   
2. Attend Defense Matters in March——This is the premier advocacy event where credit union leaders meet directly with lawmakers to protect our future.
   
3. Support the National Advocacy Fund——This fund supports legal and legislative efforts to challenge harmful regulations and policies.
   
4. Educate Your Members——Mobilize members to contact Congress and advocate for policies that protect their credit unions.
   

Conclusion: The Future of Credit Unions Depends on Advocacy
Credit unions are at a crossroads. The industry faces a barrage of legislative, regulatory, and competitive threats that could redefine how we operate. If we do not engage, we risk losing the very foundation of what makes credit unions special—our ability to serve members first.

This is not just a fight for leadership—it is a fight for every single person who believes in the credit union mission. We urge you to take action, attend our Defense Matters in March, support DCUC’s advocacy efforts, and make advocacy a daily commitment at your credit union.

Together, we can protect the future of credit unions and ensure that we continue to serve our members, our military, and our communities for generations to come.