CU Supporters Urged to Send Second AB 1436 Message to Senators

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As of Thursday evening, Assembly Bill 1436 had been referred from the California Senate Appropriations Committee to the Senate Rules Committee. The situation in Sacramento can always change rapidly at the end of session.

For credit unions, now is the time to turn up the heat as the weekend approaches using Connect for the Cause! Credit union supporters need to ramp up the pressure on state senators IMMEDIATELY. Credit union advocates have already sent nearly 9,500 messages to state senators as of Friday afternoon, with more coming in — but they shouldn’t stop.

The California Credit Union League wants to thank everyone who already sent a message through Connect for the Cause and also request that they take a minute to send a second message to their state senators. The League is asking advocates to tell senators to vote “no” on AB 1436 or demand amendments that would protect credit unions if the bill eventually heads to the Senate floor for a vote. There are multiple allies in the Senate working on credit unions’ behalf, and credit union supporters need to back them up by sending opposition messages to all of the state’s senators.
 
AB 1436 would harm credit unions and hinder their ability to help members truly needing assistance. The bill’s one-size-fits-all approach allows borrowers to pause their home payments for up to one year, regardless of need.

“Our voice remains vital in this fight to protect credit unions,” said Diana Dykstra, president and CEO of the League.

Senators Noted Credit Union Concerns
Although the California credit unions’ voice needs to continue being heard in Sacramento, the industry is being heard. After a six-hour long hearing, AB 1436 passed out of the California Senate Judiciary Committee earlier this week. The League had already ascertained this would happen.
 
Credit unions were front and center in the conversation. The committee chair urged the bill’s authors to work with the League to address the industry’s concerns, and several legislators on the committee agreed. Many stressed the need to work with local lenders and stakeholders, including credit unions, so that the bill is palatable for all stakeholders. At that stage, the League had secured a key provision that allows credit for a forbearance already granted, limiting the required forbearance period to 12 months.

A bill can continue being amended up to 72 hours before it goes for a final vote on the senate floor. The League’s advocacy team will continue to strongly lobby for amendments and provisions favorable to credit unions.

The League’s ‘Financial Data Update Survey’ and AB 1436
Credit union leaders were also urged to complete the League’s monthly financial data update survey immediately. Doing so will demonstrate to state senators the great lengths that California credit unions have taken to help their members during the economic fallout from the COVID-19 pandemic.

The survey captures key ratios, financial data, and delinquencies as of July 31, as well as data on mortgage forbearance/extensions, consumer loan extensions, and business forbearance/extensions from two primary time periods (through May 31 and June 1).

Credit unions’ response to the survey remains critical as the League advocates on the industry’s behalf regarding AB 1436, as well as other efforts supporting thoughtful and sensible legislation with state and federal lawmakers.

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