Legislature Passes Bill to Modernize Credit Union Laws, Expand Access to Underserved North Carolinians
Raleigh, NC – Both chambers of the North Carolina General Assembly passed legislation to modernize the laws governing state-chartered credit unions, and to authorize credit unions to serve North Carolinians who have dwindling access to financial services.
The measure, part of a larger package of policy items contained within Senate Bill 595, passed the Senate last week and passed the House this afternoon. It’s the culmination of four years of diligent effort and negotiation.
The bill grants permission to credit unions to accept as members people with incomes below the poverty line, as well as North Carolinians who live in banking deserts.
Dan Schline, CEO of the Carolinas Credit Union League, said, "People who live in rural and underserved parts of North Carolina have dwindling financial services options. Credit unions, as not-for-profit cooperatives, have the right model and the will to serve them. This legislation will grant them permission to do so. Credit unions across the state are deeply grateful to bill sponsors and those who worked behind the scenes for the years of work that have gone into this measure."
The bill also:
Modernizes some credit union laws that haven’t been updated since the 1970s. For example, it allows credit unions to keep records electronically.
Streamlines the process through which state-chartered credit unions can gain permission to operate in ways already allowable for federally-chartered credit unions.
Strengthens the powers of the North Carolina Administrator of Credit Unions, which also haven’t been updated since the 1970s.
