By Michael Fryzel
Throughout the COVID-19 pandemic and its resulting health and economic effect on individuals across the country, there have been countless stories of how credit unions have rallied to help. Not a day goes by without reading or hearing about a credit union that has conducted a food drive, cooked or distributed meals for needy individuals, donated funds for gloves, masks and food or contributed to one of the many charitable groups helping those in need.
And this is all above and beyond what they are doing for their members.
Credit unions have allowed individuals to skip payments on mortgages, car loans and credit card balances. They have rewritten loans at terms even more favorable than the previous one and they have counseled thousands of individuals who desperately need a friendly voice to reassure them that they will get through this.
So much good has been done by credit unions during this double crisis. But for those who work for credit unions or are members, this is nothing new to them. Credit unions have been there to help before, they are helping now and hopefully they will be there to help again if ever needed.
With all this fantastic effort being made by credit unions, it is surprising to see that no one in our nation’s capital has noticed. No one there is reaching out to help credit unions with the assistance they need as this crisis continues. Every piece of stimulus legislation that has been introduced has literally ignored credit unions. The crumbs they have been thrown by Congress translate to a slap in the face.
Makes One Wonder
Our senators and representatives seem to forget that credit unions are financial institutions just like the banks they love to love. They, too, like businesses across the country, are starting to hurt. While making every attempt to keep their work forces employed, dealing with loan payments not being made, paying their expenses that continue, watching returns on investments fall and with a dwindling stream of revenue, many see a future that is not bright.
It makes a person wonder why those in Congress have failed to include substantial help for credit unions in every piece of legislation they have passed. Publications have printed news releases from the federal regulator and trade associations about letters that have been sent to Congress detailing what credit unions need. Are these letters read by anyone? If they are, do they understand the urgency? Do our elected officials even realize the potential devastating impact the crisis could have on credit unions?
Talk, Talk, Talk
Each year members of Congress appear before trade association groups to tell them how great credit unions are. When they finish they walk out of the room and apparently forget about credit unions until they come back next year and say the same thing. These are the same individuals who each year receive contributions from credit unions through their associations. “Friends of credit unions” they call themselves. With friends like that, who needs enemies?
Credit unions must start to ask, why not us? Why are the banks the favorite sons getting all the accolades and favored treatment? Why do sport teams, chain restaurants, heavily endowed universities and big business get stimulus funds? Credit unions get no mention, no recognition and no money.
Credit unions cannot travel to Washington to hike the Hill. You don’t know who is there and those who are can’t be found. District offices are empty. Members of Congress supposedly are working from home--perhaps drafting their next credit union speech or fund raising letter.
Hearing Crickets
Every time it is rumored that Congress may tax credit unions and a grassroots campaign is started. Congress is inundated with calls, letters and emails. Where is that type of effort?
Credit unions, now more than ever, need Congress to step up and help them. Our country is resilient and better days will come, but the road that needs to be travelled to reach them is very rough. Most will survive but some, without help, will not.
And what do credit unions hear from Washington? Crickets.
Michael Fryzel is the former chairman of NCUA now in private practice in Chicago.