ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Friday, April 4, 1997 TAG: 9704040033
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: MAG POFF THE ROANOKE TIMES
State credit union leaders, meeting this week in Roanoke, launch a campaign today to win public support for their battle with banks.
The 265 credit unions in the Virginia Credit Union League will use their annual meeting in Roanoke this week to open a campaign to fight restrictions on their membership.
Between 500 and 600 people are attending the group's 63rd annual meeting, being held through Saturday at Hotel Roanoke & Conference Center.
Their campaign is part of a national drive to win public support in a dispute between credit unions and banks over how far credit unions can go in expanding their membership. Formal announcement of the campaign is scheduled for today.
The Virginia League described itself as "under siege" since a federal court ruled late last year that credit unions cannot accept new members outside their core constituencies, usually an employee group. The restriction is generally tied to the favorable tax treatment credit unions receive from the federal government. Several Virginia credit unions have defined their membership more broadly, taking in large geographic areas.
A bill before Congress would overturn the court decision, which is also on appeal.
The campaign is a coordinated lobbying and public relations program to support the credit unions' position. It is labeled as an effort to protect consumers' choice.
The credit unions said that banks are doing more than attempting to restrict credit union membership. "Claiming unfair competition, [banks] also seek to repeal credit unions' tax-exempt status, suggesting that large credit unions which operate like banks should be taxed like banks," the league said.
Eugene H. Farley Jr., president of the Virginia league, said its members come in all sizes, some serving multiple groups and others serving only those with a common bond. But all are member-owned, not-for-profit financial cooperatives, he said.
In the next few weeks, Farley said, the credit unions will be asking their members to contact their congressional representatives, asking them to support the Credit Union Membership Access Act, the bill that would open membership in the credit unions.
Delegates to the Roanoke meeting will also elect officers, attend educational sessions and give out awards.
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