Serrano Introduces The Affordable Financial Services Enhancement Act
Press Release
SERRANO INTRODUCES THE AFFORDABLE FINANCIAL SERVICES ENHANCEMENT ACT
Late last week, Congressman José E. Serrano introduced the "Affordable Financial Services Enhancement Act," H.R. 3113, a measure designed to help credit unions to offer their services in "underserved" areas. Serrano represents the Bronx, an area which has struggled in recent decades with a severe lack of access to financial institutions. Many credit unions have been prevented from serving such communities since 2006, when the National Credit Union Administration (NCUA) was forced by threat of a lawsuit to revise their regulations allowing all credit unions to expand into underserved areas.
"I come from a community that has a great need for access to mainstream financial services," Congressman Serrano said. "We feel the direct effect of the regulations preventing more credit unions from providing their services in our community. H.R. 3113, if passed, would untie the hands of the credit unions to do what they do best; help provide low-cost savings and borrowing services. I know many communities, both urban and rural, would benefit from credit unions' enhanced ability to offer their services."
Congressman Serrano became aware of this issue through his chairmanship of the House Appropriations Financial Services and General Government Subcommittee. The subcommittee held a hearing this spring on financial services for disadvantaged communities, in which the Administrator of the NCUA testified to the problems that credit unions faced when trying to expand into underserved communities.
The Congressman's bill would simply allow all credit union types the ability to expand and offer their services in underserved areas. Current law would require them to operate an office/facility in the area in which they expand within two years, meaning that the end result would be increased financial services opportunities for low-income individuals.
H.R. 3113 has been referred to the House Committee on Financial Services, where it awaits further action.
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