WASHINGTON–President Trump has issued a new executive order he said is aimed at ending alleged politically motivated or religion-based financial discrimination.
Two credit union trade associations have responded with statements of support and/or statements clarifying the role of credit unions in financial services.
The president has claimed this week his business was turned away by several big banks in the wake of the January 6 riots, and his family has filed suit against Capital One making similar allegations.
The new EO deals with is often called “debanking,” an issue both Trump and numerous Republicans have sought to highlight recently.
The order, officially known as the “Guaranteeing Free and Fair Banking for All Americans,” directs federal financial regulators to investigate whether these types of alleged account closures violate laws, such as the Equal Credit Opportunity Act or other consumer protection rules. Financial institutions found in violation could face fines, consent orders, or other enforcement actions.
Support from Defense Council
“This decisive action sends an unmistakable message: in America, access to banking must be based on merit and law—not ideology,” Anthony Hernandez, DCUC president/CEO, said in a statement. “We applaud the president’s leadership in targeting unlawful and politicized debanking practices that have no place in our financial system.”
DCUC said it sent an earlier letter to the White House it said affirms its strong alignment with the executive order’s objectives and highlights the real-world impact of unfair account closures—particularly on small businesses, entrepreneurs, veterans, and military families.
“No law-abiding American or legitimate business should be shut out of the financial system because of bias or political pressure,” Jason Stverak, DCUC’s chief advocacy officer, said in a statement. “This order confronts that growing threat head-on. It’s a bold step, and it’s the right one.”
No ’Due Process’
In its statement, DCUC said that in recent years, banks have quietly terminated accounts based on vague risk models or ideological leanings—without transparency or due process. DCUC said such actions disproportionately affect underserved communities, including the nation’s military and veteran populations.
“Debanking threatens the financial stability of the very people we’re supposed to uplift—veterans, military families, and low-income Americans,” Hernandez added in the statement. “Credit unions have been the safety net, stepping in when big banks walked away.”
DCUC added that credit unions have long upheld the values now formalized in the executive order.
Statement From America’s Credit Unions
In its statement in response to the new EO, America’s Credit Unions President and CEO Jim Nussle said, “The not-for-profit credit union system thrives by serving the diverse financial needs of all Americans. Industry bylaws have long reflected a mantra of ‘once a member, always a member,’ and despite regulatory pressures, it would be counterintuitive for a credit union to limit its membership beyond what the law requires. Some credit unions have also endured costly litigation in order to serve higher risk members.
“Guided by the industry’s cooperative principles, credit unions continue to welcome Americans of all backgrounds, including those in unique economic sectors or with complex financial profiles, but we strongly support credit unions’ ability to lawfully manage risk,” Nussle continued. “We look forward to working with the NCUA to protect credit union interests in implementing the executive order, and with the Administration and Congress to limit regulatory overreach to protect consumers’ access to credit unions.”
‘Hopefully the Last Act’
John McKechnie, who advocates on Capitol Hill for credit unions, added, “This move by the Trump Administration is hopefully the last act in the drama that started with ‘Operation Chokepoint’ over a decade ago. Credit unions come in all political stripes, but I can safely say that the overwhelming majority do not want to be caught in the crossfire that results from any politicization of financial services. Although legal minds are just wading into the implications of what this executive order means and how it’s going to be implemented, my first reactions are that this will be a relatively small addition to the exam process. And it could help avoid future controversies at the teller window.”
