NAPERVILLE, Ill.–State-chartered credit unions here are enjoying their sixth year in a row of savings due to a regulatory fee credit, according to the Illinois CU League.
Overall, state charters saved almost $16.5 million in regulatory fee credits during 2015, the ICUL reported.
In a case initiated by ICUL, legislation was passed to implement the court-approved settlement of the regulatory fee case filed against the State in 2004 (Public Act 95-1047). Under the terms of that settlement, Illinois state-chartered credit unions received a cash payment from the State in June 2009 of more than $6.1 million.
The ICUL noted that along with preventing a sweep of the dedicated credit union fund, the 2009 legislation implementing the settlement accomplished two other goals—it codified a rate reduction in regulatory fees on an ongoing basis commencing Jan. 1, 2009 and it reduced the Credit Union Fund margin that triggers a credit back to credit unions.
“Without the efforts of the League in pursuing this case, Illinois credit unions might still be stuck in a cycle of overpayment and sweeps into the general fund,” the league said.
“This confirms the strength of credit unions when we act in a unified manner,” said ICUL Executive Vice President, General Counsel and COO Stephen Olson. “The role played by ICUL, specifically the prosecution and favorable settlement of the regulatory fee case is an excellent example of the value of working together to achieve a common goal.”
A Jan. 19 letter sent to each credit union identified the specific amount of its individual fee credit. The aggregate paid to credit unions came to $179,144.
“It was a very difficult decision for the league to pursue litigation against the state, including the governor, more than 10 years ago,” said Tom Kane, ICUL CEO and president. “But we take great pride in knowing our five-year effort in court and the legislature has led to regulatory fee credits totaling more than $16 million dollars for our credit unions over the past six years.”