Championing Defense Credit Unions Through Advocacy: Honoring Our Military and Veterans’ Service (CUToday, November 8, 2024)

by Jason Stverak

As we approach Veterans Day, it’s a time to reflect and honor our Nation’s heroes—the generations of men and women who have selflessly served in our armed forces. A tribute to these communities is not only offered by words of deep appreciation or gratitude, but through action.

For decades, DCUC has seen the level of commitment and service credit unions offer military, veterans, and underserved communities; one that has historically and statistically distinguished credit unions as strong advocates for military and veteran populations. This is why DCUC coins this part of the industry as “defense credit unions,” encompassing both credit unions that began decades ago on or near military installations and newly established ones committed to building strong connections with local military and veteran communities. Defense credit unions are united in their dedication to helping our Nation’s service members, veterans, and their families achieve financial success.

​This year, DCUC has led a strong stance on key legislation that impacts credit unions’ ability to provide vital services to our military and veterans, advocating for policies that genuinely support their financial well-being.

Fighting Credit Card Competition Act
First, DCUC continued to lead the industry’s opposition of the Credit Card Competition Act (CCCA), sharing with Congress how the legislation would disproportionately harm military and veteran families.

DCUC highlighted how the CCCA would require credit unions to route credit card transactions through multiple, often less secure networks, which could lead to higher operational costs, reduced benefits, and fewer financial protections for military and veteran members. For families already managing the unique financial challenges of military life—frequent relocations, deployments, and maintaining financial readiness—these changes could be detrimental to their financial security. The CCCA could also increase the risk of fraud, ultimately undermining the consumer protections members rely on.

Additionally, DCUC advocated for the passage of H.R. 3642, a bill that would amend the Fair Credit Reporting Act to shield service members and veterans from unfair credit reporting practices. DCUC provided Congress with a common example: service members find themselves with negative marks on their credit reports due to delays in Tricare payments—marks that can jeopardize their security clearances. As it stands, these individuals have limited recourse to challenge these inaccuracies, especially when facing the complexities of deployments or relocations. DCUC emphasized to policymakers how the bill would address these issues and reinforce the protections service members need to maintain their financial stability.

Business Lending Cap
DCUC is still pushing for reform to lift the arbitrary cap on business loans for veterans and military members. Veterans who wish to establish small businesses often find themselves restricted by a lending cap that limits the support credit unions can offer. DCUC has encouraged Congress to support the bipartisan bill, H.R.4867, the Veterans Member Business Loan Act (VMBL) noting that any discussion of the landscape of veteran owned small businesses must be the unfair and arbitrary business member loan cap of 12.25% that is placed on credit unions hindering their ability to serve veteran owned small businesses. DCUC is backing bipartisan efforts led by Senators Mazie Hirono (D-HI) and Dan Sullivan (R-AK) to exclude these essential business loans from current restrictions, empowering veteran entrepreneurs to build their businesses and contribute to their local economies.

Another major concern DCUC tackled with its advocacy was the proposed “Protecting Consumers from Payment Scams Act,” which would impede credit unions' ability to offer innovative payment solutions like Zelle, a service critical to military families who need reliable ways to transfer funds due to frequent relocations and deployments. Over 99.9% of Zelle transactions go through without fraud; for service members and their families, Zelle allows them to transfer funds directly from their credit union-insured account to individuals at other insured depository institutions. DCUC opposed any regulation that would compromise this service and make financial transactions less accessible for those serving our country.

VA Home Loans
DCUC also called for Congress to address issues surrounding VA Home Loan accessibility, impacted by recent changes to real estate commission practices. Without proper legislative action, veterans may face significant barriers in purchasing homes, an unacceptable outcome for those who have sacrificed so much. DCUC is advocating for immediate solutions to prevent any disruption to veteran homeownership.

Last month, DCUC expressed concerns to the Consumer Financial Protection Bureau (CFPB) regarding its implementation of Section 1033 of the Dodd-Frank Act. The rule mandates that financial institutions share data with third-party fintech companies, a move DCUC believes could compromise the privacy and security of credit unions’ members, especially those belonging to military and veteran communities.

DCUC’s efforts extend beyond federal regulations to the tax status that enables credit unions to reinvest in their members. Over 30% of military personnel and veterans rely on credit unions for essential services, including low-cost loans, financial education, and support during times of crisis. DCUC is continuing to engage Congress in discussions and evidence of why it should preserve the current tax status of credit unions. Without it, we risk higher fees, reduced loan access, and fewer benefits for America’s families who need us most.

CLF Expansion
DCUC continues to push for the permanent expansion of the Central Liquidity Facility (CLF), ensuring credit unions have the liquidity support needed to serve their members, especially in challenging economic times. Stable liquidity is the backbone of resilience, allowing credit unions to continue offering affordable loans, safe savings options, and other financial lifelines to military and veterans in need.

As we celebrate Veterans Day, it is crucial to remember that our actions speak louder than words. At DCUC, we remain committed to advocating for your service to our Nation’s military and veterans in every legislative and regulatory arena. By championing these causes, and having you join our efforts, together we honor their sacrifices and ensure that our Nation’s heroes have access to the financial services that support their readiness, security, and future!

Jason Stverak is Chief Advocacy Officer at the Defense Credit Union Council (DCUC).