Chairman Johnson Addresses
African-American Credit Unions
Seattle, Washington, August 11, 2006 – National Credit Union Administration Chairman JoAnn Johnson today urged greater activism and involvement as a key to economic empowerment for credit union members as she addressed the African-American Credit Union Coalition 8th Annual Summer Conference in Seattle.
“All consumers have a right to access and choice in financial services, and nowhere is this more important than in underserved communities that have too long been ignored. Credit unions should be legally empowered to reach out to these areas, not discouraged by legal threats and negative rhetoric.”
Chairman Johnson called on the credit union leaders in attendance to become even more proactive in encouraging Congress to remove statutory barriers to credit union service to underserved communities. “The Congressional Black Caucus has been a stalwart when it comes to expanding credit union services to low-income Americans. That Caucus knows the importance of access to financial services, and knows what happens when a community is denied that access. It should be a natural audience for your message of credit union outreach to the underserved,” noted the Chairman.
Financial literacy was also a focus of the Chairman’s comments, as she emphasized the vital role that credit unions can play in making certain that their members know the dangers of predatory lenders. “The phrase ‘an ounce of prevention’ was never more apt than when it comes to describing the value of basic financial education. Consumers win when they know how to manage their money and how to recognize the crippling effects of predatory loans. Credit unions are at the forefront of national efforts to improve financial literacy, and I am proud that NCUA can play a role in that endeavor.”
Chairman Johnson also addressed NCUA’s proposed rule on credit union conversions to mutual savings institutions and the role of the Agency’s Community Development Revolving Loan Fund (CDRLF) in assisting low income-designated credit unions.
The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the accounts of 85 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions not tax dollars.
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