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Credit Unions call Senate passage of H.R. 1151 a consumer victory
July 28, 1998
INDIANAPOLIS (July 28, 1998)—In an overwhelming 92 to 6 vote, the U.S.
Senate today passed H.R. 1151, the Credit Union Membership Access Act. Indiana
Sen. Richard Lugar voted for; Sen. Dan Coats voted against. The House version of
the bill was passed with a 411 to 8 vote April 2. After differences between the
House and Senate versions are ironed out, the President is expected to sign the
bill into law.
H.R. 1151 restores consumer choice of financial institutions by allowing
credit unions to serve multiple groups of members. Federal credit unions, which
have been barred by court order from accepting new groups outside their core
field of membership, could take in multiple groups of fewer than 3,000. Existing
members and groups within their field of membership would be grandfathered, and
new groups of more than 3,000 could be accepted under certain conditions.
"This bill is about consumers having the choice to join member-owned,
not-for-profit credit unions, as opposed to being restricted to for-profit
banks," said John McKenzie, president of the Indiana Credit Union League, a
trade association representing credit unions. "Without the bill’s
passage, sixty percent of Americans would be ineligible to reap the benefits of
credit union membership," "And, without passage, many federal credit
unions could not survive or grow in the future. Many of their original sponsors
have downsized or ceased to exist."
Hoosier credit union supporters have worked diligently to educate their
congressmen on the issue. In anticipation of the Senate vote, on July 14, 151
staff, volunteers and members from credit unions across the state traveled to
Washington, D.C. to take their message directly to the senators at a rally on
the Capitol steps. They joined more than 7,000 other sign- and flag-waving
supporters from throughout the U.S. During the past year, tens of thousands of
credit union members have written their congressmen and signed petitions to make
their views known.
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