SACRAMENTO, Calif.–Four credit union trade groups have sent a joint letter to a member of the California Assembly expressing strong opposition to the proposed California Community Investment Act.
The joint letter, from America’s Credit Unions, the Defense Credit Union Council (DCUC), the California Credit Union League (CCUL), the African-American Credit Union Coalition (AACUC), said credit unions support the goal of serving underserved communities, but argued AB 801 imposes unnecessary, burdensome regulations on credit unions, which already excel in this mission without a state mandate.
The ’Good Actors’
“Credit unions are financial cooperatives that exist solely to provide pooled funds for member- owners and should be recognized as the good actors they are,” the letter reads. “Due to their unique structure, credit unions don’t need a push to serve people of modest means—doing so is embedded in the mission of all credit unions. The trade associations listed above firmly believe that subjecting credit unions to CRA is unnecessary and will impede the credit union’s natural ability to serve the underserved. For these reasons, we must oppose AB 801.”
Key Concerns
According to the four trade groups, their key concerns include:
- Redundant Regulation: “Credit unions were intentionally excluded from the federal Community Reinvestment Act (CRA) and already outperform banks in lending to underserved communities.”
- Higher Costs, Lower Impact: “AB 801 expands CRA obligations, adding extensive reporting and examination requirements. These demands divert resources away from affordable lending and community programs.”
- Legal Restrictions Ignored: “The bill fails to adequately account for credit unions’ field-of- membership rules and federal lending caps, which limit how and to whom they can lend— making full compliance with CRA standards problematic.”
- Strong Existing Oversight: “Credit unions already comply with federal fair lending laws and are subject to rigorous supervision. Many also hold federal designations that affirm their community impact: 19 are Community Development Financial Institutions (CDFIs); 37 have Low-Income Designation; 20 are recognized as Minority Depository Institutions (MDIs)
DCUC Support for Veterans Bill
Separately, the DCUC sent a letter to Capitol Hill in support of the H.R. 507, the Veterans Member Business Loan Act, ahead of the House hearing on “Empowering Veterans Through Entrepreneurship.”
DCUC said also submitted testimony for the Senate hearing on “Exploring Bipartisan Legislative Frameworks for Digital Asset Market Structure.”
The organization said its comments specifically focused on:
- Stablecoin clarity and consumer protections
- Regulatory parity for credit unions
- Institutional inclusion in the digital asset ecosystem
The DCUC’s letters can be found here: dcuc.org/lettersandcomments
