Modernize century-old credit union laws

The Iowa Legislature passed the Iowa Credit Union Act in 1925 out of economic necessity. Lawmakers needed a way to help ensure Iowans’ access to credit and financial stability through economic turmoil. That legislation allowed for the creation of not-for-profit cooperatives to serve Iowans’ financial needs. In the nearly 100 years since, credit unions have done exactly that. We’ve created low- or no-interest loan products in response to natural disasters and large, local layoffs. We waived fees, paused payments and more to help our members through a global pandemic. Credit unions have been there for Iowans and will continue to be.

But Iowans’ financial needs have changed over the past 100 years. Consumers need their credit union to keep up with rapidly changing technology that makes financial services more secure and accessible. Iowa credit unions must attract, elect and retain highly skilled boards from their membership. For this and more, updates to the century-old Iowa Credit Union Act are required to better equip Iowa credit unions – and the 1.4 million members who own them.

Earlier this year, the Iowa House overwhelmingly passed a credit union modernization bill (HF 131) on a bipartisan 86-3 vote before progress stalled in the Senate. In the next session, we’ll ask our state senators to pass this bill and strengthen the Iowa code that allows credit unions to be there when Iowans need us most.

Renee Christoffer

CEO, Veridian Credit Union