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LCUL Acts on Behalf of Louisiana's Military Based Credit Unions

Published: Jun 12, 2019

Under the Federal Credit Union Act of 1996, the Department of Defense is granted the discretionary authority to waive the cost of credit union land leases, as negotiated between each military installation's base commander and a given credit union. This exemption is restricted in scope to credit unions whose field of membership is at least 95% composed of individuals who are or were at the time of admission into the credit union military personnel, federal employees, or family of those who are or were.
 
Representative Trent Kelly (R-MS) introduced a recent amendment regarding the treatment of credit unions and banks for on-base services. Credit unions would be extraordinarily concerned with the inclusion of any language that would provide rent-free access to military institutions for more complex profit-centered entities such as predatory payday lenders and currently restricted insurance and investment companies.
 
In response to this concern, LCUL wrote to Louisiana Representative Ralph Abraham who currently serves on the Armed Services Committee and who would have the ability to vote 'no' on the proposed amendment.