WASHINGTON — The Defense Credit Union Council is urging Congress to strengthen consumer financial privacy protections while also incorporating several credit union reforms into pending housing legislation, arguing both steps would bolster financial security for military families and communities served by credit unions.
In letters sent Monday to congressional leaders, DCUC said lawmakers should modernize financial privacy rules as part of a broader effort to update the nation’s regulatory framework while ensuring that credit unions are included in legislative efforts aimed at expanding access to housing and credit.
The comments were submitted ahead of today’s hearing by the U.S. House Financial Services Committee titled “Updating America’s Financial Privacy Framework for the 21st Century.”
‘Not a Theoretical Concern’
The DCUC said stronger and clearer financial privacy standards are particularly important for servicemembers, who are disproportionately affected by identity theft and related fraud.
“Financial data privacy is not a theoretical concern for the military community,” DCUC wrote in its letter to committee leaders. The group noted that identity theft can create long-term financial instability for servicemembers and can affect overall military readiness.
The organization said lawmakers should focus on updating — rather than replacing — privacy protections contained in Title V of the Gramm-Leach-Bliley Act.
The Asks
According to the group, modernization should emphasize:
- A uniform national privacy framework to avoid a patchwork of state laws that could increase compliance complexity for financial institutions operating across jurisdictions.
- Equal standards for all data handlers, including fintech companies and financial data aggregators, which the council said currently may operate under less stringent rules than traditional institutions.
- Stronger protections around third-party data access, including clearer consumer disclosures and revocable permissions for access to financial account data.
- Implementation safeguards for smaller institutions, such as updated model forms, safe harbors and reasonable compliance timelines.
- Avoidance of a private right of action, which the organization said could divert resources from member services toward litigation costs.
DCUC said these measures would help balance consumer protection, innovation and the operational realities of institutions that serve military communities.
Housing legislation proposals
Letter on Housing Bill
In a separate letter to congressional leaders, DCUC also called for the pending Housing for the 21st Century Act to include several credit-union-related reforms as lawmakers reconcile House and Senate versions of the bill.
The group said credit unions play a key role in many military and rural communities by helping families purchase homes, start businesses and build financial stability.
“Credit unions continue to serve an integral role in supporting financial stability for many communities across the country,” DCUC President and CEO Anthony Hernandez said in a statement, adding that including credit-union provisions would expand responsible access to credit while reinforcing community resilience.
Key reforms sought
Additional Asks
According to DCUC, lawmakers should incorporate several bipartisan proposals into the final housing package, including:
- Credit Union Board Modernization Act — Allowing federal credit union boards to meet at least six times annually instead of twelve.
- Veterans Member Business Loan Act — Exempting loans to veteran-owned businesses from the current member business lending cap.
- NCUA Central Liquidity Facility Enhancements Act — Restoring the ability of corporate credit unions to act as agents for smaller institutions during liquidity emergencies.
- Credit Union Loan Flexibility Act — Extending allowable maturities for certain credit union loans from 15 to 20 years to support housing development.
TSFCCU Joins DCUC
Separately, DCUC said Temple Santa Fe Community Credit Union has joined as its newest member credit union.
Chartered in 1954 to serve employees of the Atchison, Topeka and Santa Fe Railroad and the Santa Fe Hospital in Temple, Texas, Temple Santa Fe Community Credit Union has since expanded to serve individuals living or working in Bell County, Texas. As a state-chartered community credit union, it remains committed to providing a safe, member-owned financial cooperative focused on thrift, economic stability, and personalized service.
“Joining DCUC represents an important opportunity for our credit union and the members we serve,” TSFCCU President/CEO Lathe’ Owens said in a statement. “We are proud of our long-standing commitment to ‘Members Helping Members,’ and we look forward to strengthening that mission through collaboration, advocacy, and engagement with fellow DCUC member credit unions.”
‘Proud to Welcome’
“DCUC is proud to welcome Temple Santa Fe Community Credit Union as a new member,” added DCUC President/CEO Anthony Hernandez in a statement. “Their decades-long dedication to community service and financial empowerment reflects the very best of the credit union movement. We look forward to supporting their leadership and working together to advance policies that protect and strengthen the credit union mission.”
