Credit unions host district meeting with Rep. Visclosky
October 18, 2005

Rep. Pete Visclosky (D-1) visited Northern Indiana FCU to meet with representatives from area credit unions and the Indiana Credit Union League. From left: League VP Governmental Affairs Chris Beaumont; Tim Higginbotham, Members Source FCU; Ron Hamilton, Northern Indiana FCU; Don Klassen, Members Source FCU; Beverly Jackson, Northern Indiana FCU; Rep. Visclosky; Chuck Donovan, Members Source FCU; JoAnn Stokum, McGill FCU; Russell Dahl, Allegius FCU; Robin White BASE FCU; John Lewers, Tech FCU; League Secretary Sandy Heller, Northern Indiana FCU; Mark Burns Northern Indiana FCU; Lori Moore, Northern Indiana FCU; ICUPAC Chairman Robert “Smokey” Stowers, Allegius FCU; League President John McKenzie.

MERRILLVILLE, Ind. -- Representatives from Indiana credit unions and the Indiana Credit Union League met with Congressman Pete Visclosky (D-1) while he was in his northwest Indiana district during the Columbus Day recess. The League arranged the Oct. 13 meeting which was held at Northern Indiana FCU in Merrillville, where League Secretary Sandy Heller is president/CEO.

League President John McKenzie started the meeting by explaining to the congressman how crucial the federal tax exemption is to credit unions’ ability to serve their members, pointing out that in Indiana, the 2.2 million Hoosier credit union members benefit by $160 million each year they have access to credit unions compared to if their only choice were for-profit banks. This is a 5-to-1 return on the federal tax exemption.

McKenzie reminded the congressman that the size of any credit union is not relevant to the taxation arguments put forth by bankers, but that credit unions’ structure as member-owned, not-for profit financial cooperatives is what has earned them their tax exemption.

“You are right to remind me,” acknowledged the congressman who told the group that he, along with his college-age son are credit union members because of the favorable fee structure, fair rates, convenience and friendly service they get from their credit unions. Rep. Visclosky talked to the group about the pressure the nation’s budget is feeling from Hurricanes Katrina and Rita as well as the war on terror, but expressed optimism that the credit union federal tax exemption would be preserved.

In addition to covering credit unions’ federal tax exemption, credit union leaders in the group addressed the regulatory burdens on credit unions, specifically those that could be lightened by H.R. 2317, the Credit Union Regulatory Improvements Act (CURIA), asking Rep. Visclosky to become a co-sponsor. Those in the group were especially interested in the provisions that would allow them to cash checks for individuals in their credit unions’ fields of membership that are currently unbanked and reliant upon high-cost check cashing services. The group was also interested in enhancing their ability to serve small businesses in northwest Indiana through the increase in the member business lending cap that CURIA would allow.

Although credit union-related issues dominated the meeting, Rep. Visclosky asked the group about the economic environment in northwest Indiana and talked about local initiatives such as a comprehensive transit system and the development of the Gary airport.

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