WASHINGTON, D.C (January 29, 2025) |
Today, the Defense Credit Union Council (DCUC) sent a letter to the Senate Banking, Housing, and Urban Affairs Committee, urging Chair Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA) to recognize the important role credit unions have in safeguarding financial access. DCUC’s letter comes ahead of the Committee's hearing, “Investigating the Real Impacts of Debanking in America.”
Debanking—the practice of financial institutions restricting or terminating services without clear justification—poses a serious threat to financial inclusion, particularly for small businesses, entrepreneurs, and underserved communities. DCUC Chief Advocacy Officer Jason Stverak stressed in today’s letter to the committee how military families and veterans, who rely on fair and stable banking services, are disproportionately affected when large financial institutions prioritize risk avoidance and profit over people.
DCUC currently represents an important segment of America’s financial sector, defense credit unions serving over 40 million members stateside and abroad, including military personnel and veterans.
In its letter, DCUC emphasized how credit unions offer a critical safeguard against debanking due to their member-owned, community-focused model. Unlike large for-profit banks, credit unions prioritize financial inclusion, ensuring that those most at risk of financial exclusion—low income families, veterans, and small business owners—retain access to essential banking services.
DCUC’s letter also elevated its recent article published in CU Today, titled “Credit Unions: A Reliable Shield Against the Growing Crisis of Debanking,” which reaffirms DCUC’s message: credit unions prioritize relationships over rigid risk models, offering a crucial financial safety net to individuals and businesses unfairly impacted by debanking practices.
As the Committee examines this pressing issue, DCUC calls on policymakers to support regulatory policies that empower credit unions to continue providing fair and equitable financial services. This includes ensuring that regulations do not inadvertently force credit unions into the same restrictive de-risking behaviors as large banks.
“DCUC and our member credit unions stand ready to work with the Committee to protect financial inclusion for all Americans—especially those who have served our country,” says Stverak.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.