September 09, 2005: The Assembly of Delegates of the California Credit Union League on September 8 approved a position statement on credit union charter conversions emphasizing the credit union charter as the charter of choice for providing the public with consumer-friendly financial products and services, and stressing that conversions should be approached from the point of view of the members and remain an alternative, especially should the situation change regarding the future relative benefits of a credit union charter compared to other charters.
“It is important for the League to have a position that encourages full disclosure to members and preservation of member interests during conversion considerations, maximizes the value of the credit union charter, and maintains the option for credit unions to convert for business reasons,” said David L. Chatfield, president and CEO of the California Credit Union League. “We have clear evidence that banker organizations intend to gradually weaken and absorb the credit union system through their stated ‘containment and conversion’ strategy—to box credit unions in, limit their ability to serve their members, and create an environment that encourages more credit unions to convert over time to bank charters. So, leagues and CUNA should do all they can to resist these efforts to dismantle the credit union system while preserving credit union options.”
“Although credit unions face more restrictions on their operations than do mutual savings or commercial banks, the League is dedicated to the lessening or removal of these restrictions through legislative or regulatory means,” reads part of the League position statement. [Emphasis added]