WASHINGTON–The latest salvo in the bank trade associations’ attacks on credit unions doesn’t contain anything particularly new, but it does require credit unions to continue to tell their story on Capitol Hill and to stress “context,” according to the president of America’s Credit Unions.
As the CU Daily reported here, the Independent Community Bankers of America (ICBA) has published what it said is an “exhaustive analysis” of publicly available data and which it said validates what it has “long warned” about: that the “recent explosion of taxpayer-subsidized acquisitions” of banks by credit unions is harming small businesses and local communities and that community banks outperform credit unions in high-poverty areas.
‘Careless & Perhaps Misleading’
Scott Simpson, who leads America’s Credit Unions, called the ICBA’s message “careless and perhaps misleading,” and said the trade group has responded with a letter to the Hill.”
America’s CUs also produced a “Myth vs. Facts” statement in response to the ICBA’s report.
Simpson thanked the ICBA for “illustrating that our existence puts money in the back pockets of Americans. We think that’s precisely why we were permitted to exist in the first place and that credit unions continue to deliver on the brand of cooperative finance and are acting in the well-being of the customer, who happens to also be the owner of a credit union.”
The latest messaging from the ICBA is not its first, and the trade group is regularly calling upon Congress to ditch the tax exemption, at least for credit unions of more than $1 billion in assets.
The ‘Cosmetic’ Risk
Asked by the CU Daily whether any of the bankers’ arguments and analyses have any traction on Capitol Hill, Simpson said that even though the ICBA statements are “cosmetic,” there are some in Congress with whom it might register.
“Their observations are cosmetic… and yeah, I think there are lawmakers that probably react to that cosmetic argument from the banks,” Simpson said. “But it’s our responsibility to come to them with context and the reality of moving the operations of a for-profit entity and mutualizing that into the cooperative space.”
Simpson said those benefits include retaining the services and the employees of the acquired bank and then “optimizing” all of that in the marketplace.
“That’s all stuff that takes longer to describe and it requires us to go to work and to continue to tell the story,” Simpson said. “Nothing’s going to stop them from continuing to tell their very superficial story.”
Meetings Held, Comment Letters Sent, Video Released
Separately, as 2025 ends, America’s Credit Unions said in a statement that it is continuing to keep credit union advocacy priorities and issues top-of-mind, with policy comment letters to the Consumer Financial Protection Bureau (CFPB) and a letter to the House Financial Services Committee about the support credit unions need to manage the penny phaseout, and the release of a year-end video reflecting on a pivotal year for the credit union movement.
In addition, the trade group said its new CEO, Scott Simpson, “has made it clear” that talking with and listening to its members is one of his top priorities to better understand the issues they’re facing and how America’s Credit Unions can better serve them.
On Monday, Simpson spent the afternoon talking with midsize credit union CEOs. On Tuesday, Simpson will have had direct conversations with CEOs representing all asset sizes of credit unions—from less than $250 million in assets to more than $5 billion., America’s CUs said.
America’s Credit Unions noted it has recently sent:
Letter on Fair Lending Rules
America’s Credit Unions said it submitted a detailed comment letter supporting the CFPB’s proposal to remove disparate impact liability from Regulation B and to clarify the scope of the discouragement standard under the Equal Credit Opportunity Act. The letter emphasizes credit unions’ longstanding commitment to fair lending while urging the Bureau to align its regulations with statutory text and Supreme Court precedent to provide greater clarity and certainty for lenders and consumers alike.
America’s Credit Unions said it supports the Bureau’s proposed amendments addressing both disparate impact and discouragement under Regulation B. We believe these changes are legally well grounded and would yield a clearer, more consistent fair lending framework that adheres to ECOA’s text and to governing precedent.
“America’s Credit Unions supports the objective of gathering meaningful small business lending data while ensuring that regulatory requirements are aligned with operational realities, market dynamics, and the unique structure of credit union lenders,” wrote Head of Regulatory Advocacy James Akin.
The letter can be found here.
Read the letter here:
Letter on Small Business Lending Data Requirements
In a separate letter, America’s Credit Unions said it welcomed the CFPB’s reconsideration of its Section 1071 small business lending rule and strongly supported proposed changes to reduce regulatory burden. The letter endorses raising the origination threshold for covered institutions, narrowing the definition of small business, eliminating discretionary data points, and establishing a single, later compliance date.
Combined these steps would allow credit unions to continue serving small businesses without unnecessary operational strain, the trade group said.
“America’s Credit Unions supports the objective of gathering meaningful small business lending data, and strongly endorses the CFPB’s efforts to reduce compliance burdens by narrowing the scope of covered transactions, raising the origination threshold, refining the definition of small business, and simplifying data collection requirements,” wrote John Vatian, Regulatory Advocacy Counsel, Innovation & Technology. “These changes appropriately balance transparency and fair lending enforcement with the practical challenges credit unions face, enabling them to continue serving members effectively.”
The letter can be found here.
Year-End Video Released
America’s Credit Unions released a year-end video highlighting what it said are key milestones from 2025 and reaffirming the movement’s mission to advance, empower and protect the future of credit unions.
“The video underscores the industry’s unified advocacy, commitment to members, and readiness to meet the challenges ahead,” America’s Credit Unions said.
The video can be found here.
