How Credit Unions Could Convert to Banks in the Future

The Financial Services Committee is holding a hearing this Thursday on my bill, the Credit Union Charter Choice Act. It protects the rights of credit union members to choose a financial charter that best fits their needs.

I put forward this legislation to establish consistent, reasonable guidelines for credit unions converting their charters. The process should be fair, transparent and efficient – while giving credit union members more control over their own destinies.

The bill amends the Federal Credit Union Act regarding conversion of a credit union charter to a mutual savings bank or savings association charter. It would make the conversion process more clearly defined by outlining what a converting credit union must disclose to members and how the conversion vote is held.

This hearing will provide an excellent forum to discuss the conversion issue with industry representatives and experts. I look forward to this opportunity and expect a spirited, constructive debate.