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555 Dirksen Office Building
Washington, DC 20510
Ph: 202.224.6342
Fax: 202.224.1100
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Raleigh Office:
310 New Bern Avenue
Suite 122
Raleigh, NC 27601
Ph: 919.856.4630
Toll Free: 866.420.6083
Fax: 919.856.4053
Salisbury Office:
225 North Main Street
Suite 304
Salisbury, NC 28144
Ph: 704.633.5011
Toll Free: 866.420.6084
Fax: 704.633.2937
Western Office:
401 North Main Street
Suite 200
Hendersonville, NC 28792
Ph: 828.698.3747
Fax: 828.698.1267
Eastern Office:
306 South Evans Street
Greenville, NC 27835
Ph: 252.329.1093
Fax: 252.329.1097
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Speeches
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NORTH CAROLINA CREDIT UNION LEAGUE ANNUAL MEETING
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June 23rd, 2003 - Thank you for that warm, wonderful welcome. And thank you, Dan, for those kind words of introduction. It is such a privilege to be here with all of you! I have always been very honored by your support, and I could not be happier working for you in the United States Senate!
I’m pleased to see a number of familiar faces from our meeting in my transition office this past February. It was extraordinary to have so many North Carolina credit union representatives in that small office in the basement of the Dirksen Senate Office Building. I called that my bunker office . . . .
You will be happy to know we finally have our permanent offices on the first floor of the Russell Senate Office Building, and I hope you can all drop by soon.
I appreciate all that you do to serve the citizens of North Carolina, promoting a ‘people-first’ philosophy and an overall mission of helping people. Your work is vitally important to our communities. All North Carolinians deserve to have access to a safe and reliable financial institution, and credit unions offer sound financial services, protecting the financial well-being of consumers in North Carolina and beyond.
Credit unions have a strong record of providing financial products to those who have never had access to such services . . . and those who have had to pay a high premium for these services in the past. Because of you, countless North Carolinians have been able to open their first checking account, buy a home, pay for their child’s college, or plan for retirement. I am proud to support your good work to ensure that North Carolina’s consumers have access to affordable financial services. And I want to thank you . . . for all that you do to make our communities stronger and better!
You’ll all be pleased to know that I am now a proud member of the Senate Federal Credit Union!
And I am honored to serve on the Senate Banking Committee . . . because I know just how important financial services and community development issues are to North Carolina.
Meeting the needs of populations who have not been able to obtain the keys to economic success is one of my top priorities in the Senate.
Economic empowerment is far too difficult for many Americans who have either limited or no access to financial services. Many refer to these populations as the “unbanked.” Due to their circumstances, many of these people have been excluded from checking accounts with ATM’s . . . credit cards . . . and home mortgage services.
And services like these constitute one of the many keys needed to climb the ladder of economic opportunity. This vital role is one that credit unions have recognized . . . and you’ve taken steps to address this gap. For that, I applaud you all!
No where is this more apparent than in North Carolina, especially among our growing immigrant population. Our Hispanic population increased 400 percent in the 1990s, and dozens of other foreign nationals are beginning to call North Carolina home. Many of these new residents arrive unfamiliar with the language, the culture. Some have never opened a checking or a savings account . . . too many are carrying around large sums of cash, becoming prime targets for criminals. And we know that not having a bank account increases the cost of daily living, like paying utilities and cashing paychecks.
I have read about the success of efforts in North Carolina, such as the Latino Community Credit Union, which has done an amazing job reaching out to an underserved population. It truly is astounding that when the Latino Community Credit Union began in the year 2000, they estimated that they would only have 1,000 members. That credit union now has 14,000 members, and last year received $1.3 million from the U.S. Treasury Department to further meet the banking needs of those underserved communities. This is a perfect example of the success that can be found when underserved populations are given an opportunity to help themselves through their own credit union. Consider this: 90 percent of the members of the Latino Community Credit Union are immigrants. In fact, I’m told that the credit union is now also serving several hundred immigrants from Kenya. Two-thirds of the credit union’s members never had a financial account in their lives!
I’m told that one of the ways the credit union came into existence is Duke University Hospital officials approached local Latino leaders to find out why so many Latino residents were coming to the hospital. Officials quickly learned that many of these victims were “unbanked” and being targeted by robbers as they cashed their checks. One of those victims, Frederico Nanez, was shot and robbed and left paralyzed for life. But he too is now a member of the Latino Community Credit Union.
I love the way John Herrera, who serves as chairman of the board for the credit union, put it when he said that the credit union is, “not just saving money, but saving lives.” How true indeed.
The ripple effects from the advances being made, like those at the Latino Community Credit Union and so many others, help communities in fundamental ways. The families served find themselves with more money since the costs of their financial
needs decrease dramatically. They have access to credit and loans to meet the needs of their families. And they are able to establish a good credit record, so that they are eligible to obtain a home mortgage. Suddenly, these families are actually building wealth for the first time. They are able to provide greater stability for their family, and in turn, they become more involved in their communities. It’s the modern American dream that many families are beginning to realize because of the work that credit unions are doing in our communities!
Your efforts have my full attention and support. I hope you will help me by continuing to inform me of your successes, so that I can share them with my colleagues in the Senate.
Credit unions have the wonderful reputation of providing low cost financial services to our communities. And having access to low cost financial services has been a key element driving our economy over the last ten years. After all, lower borrowing costs encourage people to go out and make those purchases they’ve been wanting – and that only helps the economy!
There are a number of issues coming before the Senate this year that could directly affect your ability to provide these low cost services. One issue that always comes up when I visit with credit unions is the need for reforms to the bankruptcy system. The problems in the current system are having a direct impact on your ability to provide low cost services. According to the American Bankruptcy Institute, bankruptcy filings are already up in the first quarter of this year by 9 percent, compared to last year. And we had a record 1.5 million bankruptcy filings in the year 2002! We need this reform to help consumers and our financial institutions. Bankruptcy reform is a priority for many in Congress, and this year it looks like we will pass a bill and, for the first time, get it to a President that is willing to sign it into law!
It’s also important that Congress acts quickly to renew uniform national standards for managing consumer credit information. These provisions of the Fair Credit Reporting Act are due to expire January 1st, but we must not let that happen. Consumers and the financial sector will feel the impact if these provisions expire. They allow people to prove their ability to properly use credit and obtain the best rates possible on their credit cards, mortgages, and insurance, since financial institutions are better able to judge individual financial responsibility. And the benefits to our communities and our economy are endless. New choices have been made possible for many that have never before had such opportunities. Judgments based on race and gender have been taken out of the equation of credit worthiness, and one can now walk into a store and obtain a line of credit in minutes.
You all may be wondering why Congress would hesitate before renewing these provisions. There are those in Congress who believe that this is a great opportunity to push for greater financial privacy laws. Let me be clear: financial privacy is important, and I will work to implement reasonable protections. But, we should not sacrifice the efficiency of our credit system in the name of privacy. In many ways, I believe our responsibility is like that of doctors in the Hippocratic Oath: “First do no harm.”
Many of these new proposals would restrict the ability of financial institutions to share customer information with their affiliates. This could backfire and dramatically increase the cost of credit for us all. We need to avoid such increases as our economy struggles to recover.
Credit unions have a great record of community involvement and member service. Many of you volunteer your time to serve on the boards of credit unions. This level of commitment to helping your community makes me confident that credit unions will continue to thrive. You all have found your own niche in the financial market and will continue to do well by it. Other financial institutions may attempt to attract your members away, but it is this competition which will ensure that you continue to innovate and better serve your customers. Credit unions are the American way and should be encouraged and respected. As many financial institutions get larger and larger there will always be a place for the smaller institutions which provide the services and attention customers require.
I thank you all for inviting me here today and I continue to look forward to working with you to help strengthen our communities. God bless each of you, and God bless this great state and this land of the free – America!
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: television clip