Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez announced a proposal to cap the interest rates consumers pay for credit card and other loans. In that proposal they also called for the U.S. Postal Service to start providing more affordable financial services products to consumers.
Credit Union National Association (CUNA) responded to the proposal with a letter refuting the need for such legislation, detailing why credit unions are the best option for consumers and already provide safe, affordable and quality financial services to local communities.
Membership through a credit union provides a consumer with all the protections that Sanders and Ocasio-Cortez are seeking, including:
- A usury cap on most financial product, including credit cards,
- Broad, surcharge-free ATM networks across the country, and
- Lower rates and fewer fees on credit cards.
“Congress doesn’t need to ask the postal service to something it was not intended to do. Congress should encourage all consumers — and certainly the most vulnerable — to seek out service from credit unions,” said CUNA Chief Advocacy Officer Ryan Donovan.
CUNA is looking to work with Congress to increase awareness among unbanked consumers that options for affordable financial services are available and convenient through the credit union system. The trade association has consistently advocated for solutions to help consumers access credit unions, including expanding fields of membership.
“While everyone cannot join the same credit union, there is a credit union for everyone to join,” CUNA President/CEO Jim Nussle wrote.
As the nation’s original consumer protectors, credit unions have a long history of providing affordable, responsible access to banking services.
Read the letter in full here.