Credit union enlists 'army'

America First Credit Union has issued a call to its members to make their voices heard in the tussle between banks and credit unions by joining a "Member Advocate" group.

In the credit union's December letter to members, America First Vice President Sheryl Cox writes, "Bankers are working at the local, state and national levels to tax credit unions and their members. Their strategy aims to eliminate their competition and harm consumers by charging high fees, imposing high interest rates, and offering low returns on savings products. You can help fight the banks by becoming a member advocate."

The battle, which has been heatedly fought on legislative, courtroom and public relations fronts, warmed up again in November after the American Bankers Association and Utah Bankers Association filed a lawsuit against the National Credit Union Administration, challenging the NCUA's decision to grant additional fields of membership to certain Utah credit unions, including Ogden-based America First.

The bankers claimed the NCUA had begun allowing credit unions to add geographic areas to their fields of membership — without regard to location or charter — communities that are defined as "underserved areas" in the Federal Credit Union Act. As a result, the bankers alleged they have been "subjected to unlawful competition in their business or potential business, which competition would not exist but for the NCUA's approvals."

The lawsuit asks the court to declare the NCUA's approvals unlawful and void.

America First's member advocate group isn't new — Cox told the Deseret Morning News it was initiated some six or seven years ago as members concerned about the growing tensions between credit unions and banks called in asking how they could help.

Member advocates are America First members who are "interested in receiving information on an ongoing basis, communication about government affairs and legislation — positive and negative — affecting credit unions," Cox said. "This is a group who will react to a call to action if we need help, and who are interested in what's happening federally and statewide."

The "call to action" typically involves contacting legislators to advocate or voice concern about particular proposals, Cox said. Members are not asked to give money.