Around the States: Recent News Stories

June 13, 2025 News Around the States

Public Corporation for the Supervision and Insurance of Cooperatives of Puerto Rico Receives NASCUS Accreditation

The National Association of State Credit Union Supervisors (NASCUS) is pleased to announce that the Public Corporation for the Supervision and Insurance of Cooperatives of Puerto Rico | Corporación Pública Para la Supervisión Y Seguro De Cooperativas de Puerto Rico (COSSEC) has successfully earned accreditation.

This marks the first time NASCUS has awarded accreditation to COSSEC. The recognition represents a historic milestone for both COSSEC and the broader cooperative movement.

“The NASCUS accreditation affirms the dedicated efforts we have undertaken at COSSEC to modernize our supervisory processes, enhance regulatory oversight, and protect the assets of over one million cooperative members throughout Puerto Rico. This is not only an unprecedented institutional milestone—it is a collective achievement for the Island’s entire cooperative movement. I extend my deepest appreciation to the COSSEC team whose professionalism, commitment, and hard work made this recognition possible,” said Mabel Jiménez Miranda, Executive President of COSSEC.

This accomplishment follows a rigorous series of in-depth reviews and evaluations conducted by the NASCUS Performance Standards Committee (PSC), a panel of experienced regulators from accredited state agencies. The NASCUS Accreditation process involves a comprehensive assessment and continuous monitoring to ensure the highest standards of regulatory excellence are met and maintained. Read more

Connecticut Gov. Lamont Signs Bill Easing Regulations on State-Chartered Credit Unions; Legislation Received Pushback from Banks

David Krechevsky, Hartford Business Journal

A bill that significantly alters state statutes regulating credit unions was signed into law on Tuesday by Gov. Ned Lamont.

House Bill 7083, now Public Act 25-37, made several changes affecting state-chartered credit unions, including:

  • Allowing them to extend credit with preferential rates or terms to “insiders, employees, and governing board members if there is a written policy to do so and it will not result in financial loss.” Expanding the list of loans exempt from credit union business loan requirements.
  • Shifting, from a credit union’s governing board to its senior management, the authority to approve charitable contributions or gifts that fall below a certain threshold.
  • Removing regular reserves from being included in certain calculations of capital and net worth, and
  • Allowing credit unions certified as Community Development Financial Institutions (CDFIs) to “accept nonmember deposits up to certain caps based on the credit union’s total assets.”

The bill also made minor technical changes, including specifying that a “loan officer” is someone who accepts loan applications or offers or negotiates the terms of personal, business or other loan products for or with the expectation of compensation or gain, but not someone who acts only as a loan processor or underwriter. Read more

Maryland Launches $2.5M Fund to Help Small Businesses Grow with Access to Banking Act

Janis Reeser, Herald-Mail Media

Gov. Wes Moore has unveiled the Maryland Community Investment Venture Fund, a $2.5 million initiative aimed at boosting access to capital for small business owners in low- to moderate-income areas, according to an announcement.

The fund is part of Moore’s 2023 Access to Banking Act and seeks to enhance funding and financial services for these communities.

“Small businesses are the lifeblood of our economic growth and the keystone of our mission to close the racial wealth gap in Maryland,” Moore said in the release. “Together, we are fostering collaboration between our entrepreneurs, innovators and financial leaders to build opportunity, create jobs and supercharge our state’s economy. This is a continuation of our North Star from day one — building pathways to work, wages and wealth for all Marylanders.” Read more

The Credit Union Cowboy Podcast: Credit Union Advocacy with Sarah Waters

Join Ron and Sarah Waters, Chief Advocacy Officer at the Tennessee Credit Union League, for a timely discussion on current events shaping credit union advocacy. They explore key issues, legislative updates, and how credit unions can continue to serve their members and communities.

NASCUS Opens Nominations for 2025 Pierre Jay Award

The National Association of State Credit Union Supervisors (NASCUS) is now accepting nominations for the 2025 Pierre Jay Award, the association’s highest honor recognizing exceptional service and leadership within the state credit union system.

The award will be presented during NASCUS’s 60th Annual Meeting, the State System Summit (S3), a premier event uniting regulators, credit union leaders, and industry partners to discuss innovation, collaboration, and the future of state-chartered credit unions.

Named after Pierre Jay, the first Commissioner of Banks in Massachusetts and an early champion of credit union development in the United States, the award honors individuals, programs, and organizations whose contributions have significantly benefited the state credit union system. Jay’s pioneering efforts, alongside those of credit union trailblazer Edward Filene, laid the foundation for the expansion of credit unions across the country. Learn more

June 6, 2025 News Around the States

Illinois Delays Interchange Law

Lynne Marek, Payments Dive

Illinois State Capitol

Over the weekend, the state’s legislature voted to delay implementation of a law that would ban card interchange fees on tips and taxes.

The Illinois state legislature moved to postpone, by one year, the implementation of a law to exempt taxes and tips from credit and debit card interchange fees.

The state enacted a landmark law last year that would require bank card issuers and their networks to avoid imposing the fees on merchants for taxes and tips on any purchases as of July 1 of this year. But both chambers of the legislature passed a brief amendment Sunday that delays the effective date of the law to July 1, 2026.

The law was promoted by restaurant and retail groups because their members are adamant about finding a way to reduce the interchange fees they pay every time a consumer swipes a card to pay for goods or services. Banks that issue the cards impose the fees, alongside the card networks, as a cost for processing the transactions, and for related services.

Illinois Gov. JB Pritzker’s office didn’t immediately respond to a request for comment on whether he plans to sign the bill. He is a Democrat and both chambers of the legislature are controlled by Democrats so it’s more likely than not that he will join the effort. Read more

Busiest 6 Weeks in Credit Union History? Members of Half-Dozen CUs to Vote on Merging into Credit Union 1

Frank Diekmann, CU Daily

In what may be a first for the U.S. CU community, over the next six weeks the members of six different credit unions will be casting votes on whether to merge into Credit Union 1. 

Chicago-based Credit Union 1 (not to be confused with the Anchorage-based CU of the same name) is among the most aggressive credit unions in merging in other credit unions, and over the next six weeks the $1.9-billion credit union will be seeking to acquire more than $500 million in total assets and 33,000 members.

Credit Union 1 currently has approximately 123,000 members. It posted $1.236 million in net income and had net worth of 10.06% as of the first quarter.

Member votes are set for:

  •  June 9, AAA Credit Union, South Bend, Ind.
  •  June 30, Great River FCU, St. Cloud, Minn.
  • July 1, Archer Heights CU, Chicago
  • July 15, 77th Street Depot FCU, Chicago
  • July 16, Loyola University Employees FCU, Chicago
  • July 17, Homewood Credit Union, Homewood, Ill. Read more
Dept. of Financial Institutions: Wisconsin’s State-Chartered Credit Unions Report Sound First-Quarter Financial Performance

WISPolitics

Wisconsin’s state-chartered credit unions reported sound financial performance through the first quarter of 2025, according to data released today by the Wisconsin Department of Financial Institutions (DFI).

As of March 31, 2025, there were 102 state-chartered credit unions, three federal credit unions, and a corporate credit union serving Wisconsin residents. At the end of the first quarter, total assets for Wisconsin’s state-chartered credit unions rose to $67.6 billion. This is an increase of $1.6 billion since year-end 2024.

Over the same time, loans outstanding grew by almost $354.8 million, and shares and deposits rose $1.4 billion. This resulted in a decrease in the loan-to-share ratio to 89.88% from 91.60% at year-end 2024. Read more

Texas Bill Calls for Tough Age Checks – But Sensible Access Needs a Clear Roadmap

Mary Ann Miller, BioMetric Update

The New Yorker published a cartoon in 1993 during nascent days of the Internet that put a sly spin in the issue of identity.

In it, two dogs are looking at a computer screen and one says to the other, “On the Internet, nobody knows you’re a dog.” The cartoon and its meaning have become iconic – and prescient. As a wave of new policies and laws aims to restrict access to online content and services, and as issues about protection versus free speech are debated, there is a new focus on keeping users safe, especially those who are most vulnerable (and not, it’s not the canine cohort).

While the debate is necessary, we must not lose sight of the essential objective: safeguarding individuals online while still ensuring they retain access to essential digital spaces. In other words, we must seek to do what’s right without overreaching.

Why age verification is now center stage
A recent bill passed in Texas, requiring app store giants like Apple and Google to verify the age of users for app downloads, highlights the issue and the subsequent need for a blueprint. The Texas governor said that driving the bill is a desire to ensure that “safety and online privacy for Texas children remains a priority.” Read more

May 30, 2025 News Around the States

Credit Unions Challenge Broken Student Loan System with Revolutionary Line of Credit Approach

CU Student Choice, a credit union-owned organization that helps credit unions deliver private student loan solutions, announced expanded access to its flexible education line of credit product.

The announcement comes as student debt continues to weigh heavily on millions of families. Traditional private loans often force students to estimate the full cost of their education upfront, a tough ask given how often financial situations and academic paths change midstream.

Many borrowers end up on online lender marketplaces, dominated by national brands willing to pay big dollars for leads. But Student Choice’s user-friendly CUSelect Finder Tool at StudentChoice.org helps students and families discover line of credit options from credit unions that often go unseen on major comparison sites.

Traditional Loans Fail to Match Real Student Experiences
Most private student loans follow a rigid structure that doesn’t reflect how students actually move through college. When classes shift, family budgets change, or unexpected costs pop up, traditional loans often offer little room to adapt — leaving borrowers overextended or stuck without options. Read more

Mississippi and Tennessee Credit Unions: Stronger Together

Tennessee Credit Union League and Mississippi Credit Union Association Announce Plans to Pursue Merger

The Tennessee Credit Union League (TCUL) and the Mississippi Credit Union Association (MSCUA) are excited to announce an intent to consolidate. The effective date of the merger shall be on or before December 31, 2025, subject to the approval of the governing bodies of both associations.

Since February 2023, the two organizations have had a successful strategic alliance that focused on leveraging staffing synergies in education, event support and shared branching services to benefit member credit unions in both states. The boards of directors of both TCUL and MSCUA unanimously approved expanding this alliance by signing a letter of intent to merge. Read more

Maine Credit Unions’ Campaign for Ending Hunger Donates $236,033 to Good Shepherd Food Bank

Funding support aims to offset cuts to federal nutrition programs

As hunger rates climb and food pantries across Maine face critical shortages, Maine Credit Unions’ Campaign for Ending Hunger has stepped in with a $236,033 donation to Good Shepherd Food Bank—providing vital support amid a sharp rise in need and recent cuts to federal food aid.

The emergency donation, presented to the Food Bank on May 15 during the Maine Credit Union League’s Annual Meeting, comes as food insecurity is surging across the state. Food pantries are facing increased demand while also grappling with the loss of hundreds of thousands of pounds of USDA-donated food. For many local hunger relief programs, shelves are going empty faster than they can be restocked. Read more

New York Enacts BNPL and Overdraft Fee Restrictions

A.J. S. Dhaliwal, Mehul N. Madia, Beineng Zhang of Sheppard, Mullin, Richter & Hampton LLP; Consumer Finance and Fintech Blog/National Law Review

On May 9, the NYDFS announced that Governor Kathy Hochul signed New York’s FY2026 Budget into law, enacting two major consumer financial protection measures.

The budget establishes a licensing and supervision framework for Buy Now Pay Later (BNPL) lenders operating in New York and supports NYDFS’s January 2025 proposal to cap overdraft fees and prohibit certain high-cost practices (previously discussed here). Key provisions of the budget include:

  • Licensing requirements for BNPL providers. Companies offering BNPL products must obtain a license and submit to regulatory oversight.
  • Standardized disclosures and fee limitations. BNPL lenders must provide clear terms regarding repayment and fees, and may only charge fees that comply with newly established limits.
  • Caps on overdraft fees. NYDFS’s proposed regulations would limit the maximum amount banks may charge for overdrafts.
  • Ban on serial daily fees. State-chartered banks would be prohibited from assessing multiple overdraft fees in a single day.
  • Posting order requirements. Banks must adopt consistent transaction processing practices to prevent fee manipulation.

Putting It Into Practice: New York’s FY26 budget continues the state’s push toward stricter regulation of consumer financial services amid reduced federal oversight, through a combination of legislation, supervision, and enforcement (previously discussed here, here, and here).

May 23, 2025 News Around the States

North Dakota: Credit Unions for Kids Micropreemie Unit opens at Sanford Children’s

Sanford Health Fargo is celebrating the grand opening of the Credit Unions for Kids Micropreemie Unit at Sanford Children’s.

The Credit Unions for Kids Micropreemie Unit features four rooms and six beds dedicated to the care of babies born before 26 weeks gestation or weighing less than 28 ounces. This unit features a support environment where families with micropreemie babies can connect with others undergoing similar experiences. It also enables Sanford’s specialized NICU team to deliver developmentally appropriate, highly specialized care for these medically fragile newborns.

“We are incredibly grateful for the donation by these credit unions to turn this micropreemie unit from a dream into a reality,” said Dr. Jacob Fish, Sanford Children’s chief medical officer. “This micropreemie unit will serve our most fragile and vulnerable patients and help set them up for success on day one. This unit is another example of Sanford Health’s commitment to providing world-class health care close to home.”

The Credit Unions for Kids Micropreemie Unit at Sanford Children’s was made possible through the generous support of 20 North Dakota credit unions, in partnership with Children’s Miracle Network and the Sanford Health Foundation. Read more

Florida: Credit Union Charter Enhancement Bill Heads to Governor Following Legislative Approval

CUInsight

The League is pleased to share that House Bill 1549 – Financial Institutions – has officially passed the Florida Legislature and now awaits action by Governor Ron DeSantis.

Supported by The League and shaped by valuable input from credit unions across Florida, this legislation reflects a collaborative effort with the Florida Office of Financial Regulation (OFR) to modernize and strengthen the state charter which was one of many legislative priorities in this session and reflects our multiyear process to regularly update the charters in our region. HB 1549 includes key provisions that:

  • Improve timelines for OFR fee assessments to ensure more accurate payments.
  • Authorize for OFR to issue acquisition approval certifications for mergers and acquisitions.
  • Codify reimbursement policy for board members’ necessary expenses.
  • Eliminate regular reserve requirements, aligning with federal standards and offering greater flexibility. Read more
Texas: Governor Appoints Three to Credit Union Commission

Governor Greg Abbott appointed Sara Oates and reappointed David Shurtz and Kay Rankin-Swan to the Credit Union Commission for terms set to expire February 15, 2031.

The Commission supervises the Credit Union Department, which regulates all credit unions organized and chartered under the laws of the state of Texas.

  • Sara Oates of Austin is president of Total Appraisal Management & Review and real estate appraiser. She is a former gubernatorial appointee to the Appraisal Management Companies Advisory Committee and the Texas Appraiser Licensing and Certification Board.
  • David Shurtz of Hudson Oaks is the chief risk officer and general counsel for EECU Credit Union in Fort Worth. He is a member of the State Bar of Texas and a volunteer for Junior Achievement and Cook Children’s Radiothon.
  • Kay Rankin-Swan of Monahans is the chief of staff for the 143rd District Attorney’s Office. She is a member of the Permian Chapter of Credit Unions and Cornerstone Credit Union League. She is a board member for the Southwest Sandhills WSC and member of the Monahans Chamber of Commerce, Monahans Ambassadors, and the Monahans Lions Club. Read more

 

California: Valley First Credit Union Announces Wes Hall Memorial Fund to Honor a Founding Leader’s Legacy

Valley First Credit Union proudly announces the establishment of the Wes Hall Memorial Fund, a new annual grant program honoring the remarkable life and legacy of Wes Hall, a visionary founding member and longtime Valley First Board Chair who played a pivotal role in shaping the credit union’s history and growth.

Wes Hall joined Valley First as one of its first 33 members in December 1949 and went on to serve as Board Chair for 34 years, guiding the organization from just $33,000 in assets to over $1 billion today. His leadership was instrumental in expanding services, merging Stanislaus County Federal Credit Union and Vintage Credit Union, and positioning Valley First as a cornerstone of financial service and community support across the Central Valley. Read more

Iowa: Serve Credit Union Announces Recipients of Its Scholarship Program

CUToday

Serve Credit Union recently announced the three recipients of its $3,000 scholarship program.

Annually, Serve offers scholarships to members and their families to put towards their higher education. This year, each receipt received a $1,000 scholarship. Each applicant is required to share their future plans, degree, volunteer history, activities, and answer an essay question. This year’s essay question talked about different financial transitions within the next five years. Applicants were asked about their goals and how Serve could help navigate these changes to achieve their dreams.

“It has been an absolute honor to read the insightful essays from our participants. These contributions help ensure we remain a trusted primary financial institution throughout all stages of life,” said Serve Credit Union CEO Jami Weems. Read more

May 16, 2025 News Around the States

Michigan Department of Insurance and Financial Services Receives NASCUS Reaccreditation

The National Association of State Credit Union Supervisors (NASCUS) is pleased to announce that the Michigan Department of Insurance and Financial Services (DIFS), Office of Credit Unions has successfully earned reaccreditation.

Michigan was the first state to receive NASCUS Accreditation in 1989.

“This reaccreditation demonstrates our department’s reliable supervisory programs and commitment to the rigorous standards set by NASCUS,” said Director Anita Fox. “We appreciate the support and partnership that NASCUS provided throughout the reaccreditation process, which is essential for the state-based regulation of credit unions.”

This achievement follows a rigorous series of in-depth reviews and evaluations conducted by the NASCUS Performance Standards Committee (PSC), a panel of experienced regulators from accredited state agencies. The NASCUS Accreditation process involves a comprehensive assessment and continuous monitoring to ensure the highest standards of regulatory excellence are met and maintained. Read more

In Connecticut, The Credit Union Mergers Keep Coming

Tyfone

The third tie-up announced in the past week will create an $850 million-asset credit union in the Constitution State.

Connecticut has been a hotbed for credit union merger activity of late. Most recently, Nutmeg State Financial Credit Union in Rocky Hill and CrossPoint Federal Credit Union in Hamden on Monday announced plans to combine. The merger will result in an $850 million-asset institution with 12 Connecticut branches operating under the Nutmeg brand. The organizations said they anticipate the merger will be finalized in October 2025.

Nutmeg State said that exploring mergers is a part of its ongoing strategy to find ways to enhance long-term value for its 54,000 members. Nutmeg members will now have access to four new branches in New Haven and the surrounding areas while CrossPoint members will see significant product and service advantages. Nutmeg CEO John Holt will remain chief executive of the combined organization, and CrossPoint CEO Darlene White will remain in an undefined leadership role.

“In this environment, with competition and a highly unpredictable political landscape, scale matters,” Holt said. “Our desire is to gain as much scale and efficiency as we can to provide maximum value to our membership.” Holt said the credit union will continue to seek strategic partners in Connecticut and beyond. In June, the $703 million-asset Nutmeg State Financial and $105 million-asset First Bristol Federal Credit Union in Hartford completed their merger. Read more

OPINION Legalizing Exploitation: Why Maryland Must Reject Predatory Lending Apps

Martha Bergmark, Maryland Matters

On Gov.Wes Moore’s desk sits House Bill 1294, which would give predatory, app-based payday lenders a legal green light to exploit Marylanders.

If signed into law, it would exempt these lenders from Maryland’s hard-won protections against usury, deceptive practices, and discrimination based on race or sex. The governor should veto this bill.

HB1294 opens a loophole that would allow new, app-based payday lenders to bypass Maryland’s 33% annual interest rate cap. These digital lenders already operate in the state, often illegally, offering small-dollar loans with effective annual interest rates that regularly exceed 100% — way higher than even the most expensive credit cards. The Maryland General Assembly, instead of cracking down on these scofflaw payday lenders, chose to legalize and protect their harmful practices.

Entrenching these extractive companies in Maryland will financially devastate families. These lenders rely on repeat borrowing to make a profit. Borrowers are typically advanced just a small amount, usually less than $100, and charged high fees each time. These fees are sometimes disguised as “tips” or voluntary payments. The goal is to keep borrowers returning again and again. Read more

Summit Credit Union Awards $55,000 in Scholarships

Summit Credit Union is pleased to announce awarding $55,000 in scholarship grants for fall 2025 and spring 2026 semesters.

Fifty-seven students were selected based on their academic achievements, their involvement in school, and community related activities. The scholarship funds will be used towards each recipient’s college-related expenses. Since inception, Summit Credit Union has awarded over $530,000 in scholarships and has helped 536 students in their pursuit of knowledge.

Summit Credit Union offers scholarships to any member who is an adult learner or high school senior and expects to attend an educational program beyond high school as a full-time student. Scholarships are given through the Elizabeth N. and James V. Hamilton Scholarship Fund. Applications for the next academic year of 2026-2027 can be submitted for consideration on our website beginning October 1, 2025. Read more

Indiana Members Credit Union Announces 2025 Cancer Awareness Card Beneficiary

Indiana Members Credit Union (IMCU), Central Indiana’s largest credit union, is pleased to announce Strides for Sarcoma as the new member-nominated beneficiary for its Cancer Awareness Debit Card.

The IMCU Cancer Awareness Debit Card provides members an opportunity to support a different cancer-related organization each year. A portion of each signature transaction made with this card March 1, 2025, through February 28, 2026, up to $10,000, will be donated to Strides for Sarcoma.

The card is available for issue to members at IMCU’s 31 Indiana locations. The IMCU Cancer Awareness Debit Card is an option to members with a free checking account and can be issued immediately via IMCU’s instant issue program, which allows members to receive their debit card on the spot. Read more

May 9, 2025 News Around the States

NY Lawmakers Aim to Block Elon Musk’s Attempt to Turn X into a Venmo, Zelle Competitor

Jimmy Vielkind, WNYC/Gothamist

New York could be a stumbling block for billionaire Elon Musk’s attempts to launch a person-to-person payment system on his platform X.

Two state lawmakers from Manhattan sent a letter this week urging the state’s Department of Financial Services not to issue a money-transmitter license to X Corp., which is seeking authorization from all 50 states to launch the X Money payment system.

“What we’re talking about is nothing less than Elon Musk becoming a permanent part of the country’s financial infrastructure — with access to enormous quantities of consumer data, including the data of New Yorkers,” said Assemblymember Micah Lasher, a Democrat from the Upper West Side. “I think it would be grossly irresponsible and contrary to the law.”

X Money is part of Musk’s goal to make X, formerly Twitter, an “everything app” that allows users to conduct financial transactions, receive media and communicate with each other. Moving into payment processing would make it a rival to services like Venmo, Zelle and Apple Pay. X Corp. announced a partnership with Visa in January to operate its own payment system.

There is no single federal license for money transmission, so X Corp. has been contacting state banking and financial services regulators. It has secured the required approvals from 42 states and the District of Columbia, but not New York. Read more

Senator urges DoD to Not Renew Contract Until CU’s Overdraft/NSF Practices Can be Reviewed

CU Daily

Sen. Elizabeth Warren (D-MA) is calling on the Defense Department to hold off on renewing a contract it has with Frontwave Credit Union until its overdraft fees and “other abusive practices” can be reviewed.

The $1.4-billion, Oceanside, Calif.-based Frontwave CU, which primarily serves Marines at the Marine Corps Recruit Depot, many of them young, was the subject of significant scrutiny and media reporting in 2024 after data compiled by the state of California showed that in 2022 it had collected approximately $8 million in overdraft penalties, or nearly 12% of its overall revenue. That figure was about triple the average among all state-chartered credit unions, according to a review conducted as part of KPBS investigation.

KPBS, which extensively reported on the data that had been released by the state and particularly on Frontwave Credit Union, said it found Frontwave’s financial records show it “easily could have lost money” in recent years without income from overdraft fees. Read more

North Dakota Litchville-Marion LifeSmarts Team Earns National Recognition

The North Dakota Department of Financial Institutions is proud to announce that the Litchville-Marion High School LifeSmarts team (known as the “Money Hounds”) has achieved an outstanding second-place finish at the National LifeSmarts Competition held this past weekend in Chicago, Illinois.

This remarkable achievement reflects the hard work, dedication, and academic excellence of the students, coaches, and school community. The Department of Financial Institutions organizes the state level competition each year. LifeSmarts is a nationally recognized educational competition that challenges middle and high school students to develop real-world consumer and life skills in areas such as personal finance, health and safety, the environment, technology, and consumer rights.

“LifeSmarts helps prepare the next generation of citizens by providing real-world education on topics including financial literacy,” said Lise Kruse, Commissioner of the Department of Financial Institutions. “We are proud to support a program that builds confidence, leadership, and knowledge in our students.” Read more

Pennsylvania House Passes Recreational Marijuana Legalization

George Stockburger, ABC27 News

The vote on Wednesday afternoon passed on party lines, 102 Democrats voting yea and 101 Republicans voting nay. Earlier this week, the bill passed through a House committee, also on a party-line vote.

The bill, known as the Cannabis Health & Safety Act, goes to the Republican-controlled State Senate, where its future is uncertain. A similar bill passed in the Democrat-controlled State House last year but did not advance through the Senate. House Democrats say the bill would give adults 21 and older “the power of choice,” as well as create a public retail system “with accountability.” Democrats say the bill also protects both residents’ health and Pennsylvania minors, and will “bring home billions of dollars.” Read more

Why This Minnesota Bank Dropped Its Overdraft Fees

John Reosti, American Banker

For Stearns Bank CEO Kelly Skalicky, the smart deposit strategy involves paying out more in interest and collecting fewer fees.

In December, the St. Cloud, Minnesota-based Stearns said it would waive fees on automatic teller machine withdrawals. Last month, Stearns eliminated its $30 charge on overdrafts. Banks cutting back on overdraft charges made big news in 2021 and 2022. A number of institutions announced plans to reduce fees. Others, including Detroit-based Ally Financial, Capital One Financial and Citigroup, eliminated them altogether. The Rosemont, Illinois-based Wintrust Financial followed suit in 2023. Read more

May 2, 2025 News Around the States

Credit Unions Take Stand Against CT Interchange Fee Bill; Some Retailers Show Support

David Krechevsky, Hartford Business Journal

A bill that would prohibit credit and debit card payment networks from including sales and use taxes in so-called interchange fees has drawn strong opposition from credit unions.

Senate Bill 1460 is one of seven bills to be discussed Friday during a public hearing conducted by the state legislature’s Finance, Revenue and Bonding Committee. The bill, called An Act Concerning Interchange Fees on Electronic Payment Transactions, was raised by the committee.

In testimony submitted in advance of Friday’s hearing, Bruce Adams, president and CEO of the Credit Union League of Connecticut, said the bill “would have an obvious, immediate and detrimental impact on Connecticut’s credit unions.” Adams states that interchange fees are “negotiated in the private sector, they are paid in the private sector, and they bear no impact on the state’s accounts, budget, or revenues.” He explains that when a retailer pays an interchange fee, it is paying a private company to allow consumers to use a credit or debit card instead of cash.

The consumer is legally obligated to pay both the price of the product or service, as well as any taxes on the purchase. The consumer and retailer agree to let a financial institution advance the money owed to the retailer. The financial institution pays both the price and the tax to the retailer and then seeks reimbursement from the consumer. The retailer keeps the purchase price and remits the tax it collected to the state. Read more

In Texas: Still Charging Overdraft Fees? You’re Doing It Wrong

Kendall Garrison, CEO Amplify Credit Union/The Financial Brand

Three years ago, Texas-based Amplify Credit Union took a decision to break with overdraft fee income. Our results challenge conventional wisdom: We have since seen a steady decrease in deposit charge-offs, and now we’ve expanded fee-free programs to commercial customers, too.

As the CEO of a Texas-based financial institution, I know one thing for sure: If your company is in the news, it’s probably not for the reasons you’d like. Case in point: Over the past few weeks, banks and credit unions have made national headlines for pushing lawmakers to increase the amount of money they can charge in overdraft fees.

Honestly, I can’t believe this is a hill we’re still choosing to die on. Overdraft fees are predatory, regressive and outdated. The only reason they still exist at scale is because they work for the income statement, not the customer. And with the average American feeling the squeeze on their wallet, our dependence on overdraft fees isn’t just a moral problem. It’s a strategic liability. If you run a financial institution and your business model still depends on overdraft fees, it’s time for a hard reset.

How and Why We Flipped the Switch
On February 2, 2022, Amplify Credit Union turned off our bank fees forever. No more overdraft fees, ATM fees, transfer fees – gone, gone, gone. We walked away from at least $2 million in annual fee income, and we did so because, frankly, an income model dependent on charging a minority of members the majority of fees no longer made sense to us. This wasn’t an overnight decision. We ran the numbers. We projected the impact. And we decided to rebuild our banking experience from the ground up. Read more

PODCAST: Community Impact: How Credit Unions Leverage Digital for Good 

In this episode of the Digital Banking Podcast, Josh DeTar sat down with Tanis Bagby, Cash Management Officer at P1FCU, to discuss the power of community engagement in the digital age.

Bagby shared her career journey at the credit union, highlighting the importance of building relationships with members. She discussed her role as host of P1FCU’s podcast, Making Sense of Money, emphasizing the value of providing financial education and support through relatable, long-form content. Bagby explained how the podcast aims to meet listeners where they are, offering practical advice on topics like budgeting, home buying, and financial planning. She stressed the importance of empathy and accessibility in financial conversations, especially in a digital-first world. Bagby also touched on the role of community partnerships and how they enhance the credit union’s mission of serving members.

In Nevada: Silver State Schools Credit Union & the People Over Profit (POP) Foundation Award $80,000 in Scholarships to Ten Southern Nevada High School Seniors

Credit Union Connection/People Over Profit (POP) Foundation

Silver State Schools Credit Union (SSSCU), in partnership with its charitable arm, the People Over Profit (POP) Foundation, proudly announces the ten recipients of its 2025 Scholarship Program.

These exceptional Southern Nevada High School Seniors will each receive a $2,000 scholarship for the upcoming fall semester—renewable annually for up to four years, totaling up to $8,000 per student. Since 1989, SSSCU has awarded over $1.3 million in scholarships to support the educational journeys of Nevada students. The POP Foundation Scholarship Program recognizes students who exemplify academic excellence, leadership, volunteerism, and commitment to commu- nity service. Each scholarship is named in honor of current and past members of the SSSCU Board of Directors, Executives, as well as the POP Foundation itself. Read more

Apr. 25, 2025 News Around the States

Goodbuy wins NACUSO’s 2025 Next Big Idea Competition

CUInsight/Goodbuy

Photo by Robbie Young

Goodbuy, a groundbreaking community commerce platform, has been named the winner of the 2025 Next Big Idea Competition by the National Association of Credit Union Service Organizations (NACUSO).

The announcement was made live at the NACUSO Reimagine Conference at the Wynn in Las Vegas. The Next Big Idea Competition celebrates innovation poised to drive collaboration and growth across the credit union ecosystem. Goodbuy stood out for its values-driven, tech-enabled approach to helping credit unions engage small businesses and strengthen local economies.

“This recognition affirms what we’ve believed from the beginning—that credit unions are uniquely positioned to be community catalysts,” said Cary Fortin, Co-Founder of Goodbuy. “By connecting members with local businesses through a credit union-branded marketplace, we’re turning everyday transactions into tangible impact.”

The Goodbuy platform enables credit unions to offer exclusive, values-aligned benefits to their members while providing local businesses with a powerful new marketing channel. Built for easy implementation, the platform supports deposit growth, card usage, and SMB acquisition—all with minimal lift and measurable results. Read more

In Maryland: Crypto Kiosk Scams Target of Proposed Regulations

Zamone Perez, Public News Service

A bill in the Maryland General Assembly would regulate cryptocurrency kiosks, the more than 700 ATM-like machines for virtual currencies around the state.

The FBI received more than 4,400 complaints about the kiosks in 2023, according to a report on cryptocurrency scams. Nearly 60% of complaints came from people over the age of 60. The legislation would establish registration and operating requirements for the kiosks in the state, enforced by the Commissioner for Financial Regulation.

Tammy Bresnahan, senior director of advocacy for AARP Maryland, said crypto kiosks have become a new way for scammers to target people. “These kiosks have become a haven for scammers to call people to say, ‘There’s a problem with your account. You need to take money — $4,500 in cash — and deposit it into this nearby cryptocurrency kiosk because your account has been compromised,'” Bresnahan explained. The total losses from cryptocurrency kiosks in 2023 exceeded $150 million. Read more

UPDATE: On Wednesday, April 23, 2025, Governor Moore signed SB305, which was brought forth by Senator Beidle, to address the issues associated with fraud carried out through crypto kiosks. “This bill is an important step forward and was drafted with full input from industry as well as consumer advocacy groups, particularly AARP. Kudos to all involved in this process. OFR will work to implement this bill and I am confident that it will make a positive difference for the citizens of Maryland,” said Commissioner Tony Salazar, Maryland Department of Labor, Office of Financial Regulation.

Wings/Ent Merger Creates Nation’s 10th Largest Credit Union

Tyfone

The combined company will serve more than a million members across six states from Florida to Colorado.

San Diego County Credit Union and California Coast Credit Union did not hold the title for long. The two San Diego-based credit unions on April 11 announced plans to combine in the largest credit union merger struck in 2025. Until Wednesday.

That’s when Wings Credit Union in Apple Valley, Minnesota, announced a merger of equals with Ent Credit Union in Colorado Springs, Colorado. Both credit unions are the largest in their respective states. The newly formed credit union will have roughly $19.2 million of assets making it the 10th largest credit union in the country, just behind $19.5 million-asset Alliant Credit Union in Chicago.

The institution, which will use the Wings name, would also serve nearly one million members. “With this new combined entity, we are excited to offer members access to a combined 91 locations in Colorado, Florida, Georgia, Michigan, Minnesota, and Wisconsin,” said Chad Graves, CEO of $9.8 million-asset Ent. Read more

SECU Foundation Awards $480,000 in Mission Development Grants to Support 12 North Carolina Non-profits

SECU Foundation is pleased to announce its first cohort of Mission Development Grant (MDG) recipients for 2025, welcoming 12 new organizations to the program including non-profits in three counties – Chowan, Currituck, and Franklin – that are receiving first-time funding outside of scholarships and loans. The new grantees are working to address domestic violence and exploitation, homelessness, substance misuse, health and well-being, housing, and community support services. Read more

Apr. 18, 2025 News Around the States

The Rising Tide of Fraud: How Credit Unions Can Fight Back

Jeffrey Kusler, Journey Federal Credit Union/CUSO Magazine

Within minutes, a member’s entire financial life was stolen
A 24-year-old credit union member recently fell victim to a devastating fraud scheme. A scammer, posing as a Verizon representative, tricked him into providing access to his phone. Within minutes, the fraudster had transferred the eSIM to another device, effectively stealing the member’s phone digitally.

Once they had control of the phone, they had everything—his brokerage account, fintech accounts, email, social media—everything. He was locked out of it all, completely cut off from his digital life. Worse, when he sought help from the institutions he trusted, he found no one to talk to in person.

He turned to his credit union, where staff worked through the situation as best they could, but the road ahead for him was going to be uphill. Just getting back into Google after an account takeover is hard enough, but securing all his financial accounts? Nearly impossible.

Unfortunately, this scenario is becoming all too common. SIM-swap fraud, account takeovers, and digital identity theft are on the rise, and financial institutions must adapt. This is where credit unions must step up and lead.

By providing fraud education, hands-on fraud recovery assistance, and industry-wide fraud intelligence sharing, credit unions can differentiate themselves from megabanks and fintechs—not just as financial institutions but as trusted partners in financial security. Read more

Oregon Credit Union to Buy In-State Bank

Dan Ennis, Banking Dive

Salem-based Maps Credit Union’s purchase of Lewis & Clark Bank marks the fourth whole-bank acquisition proposed by a credit union this year.

Salem, Oregon-based Maps Credit Union will acquire Oregon City-based Lewis & Clark Bank, the institutions said in separate statements Monday. The transaction, set to close in the first quarter of 2026, is expected to create a $1.7 billion-asset institution with 13 branches, Lewis & Clark Bank CEO Jeffrey Sumpter said in a statement.

Maps does not anticipate any branch closures and said it would retain all Lewis & Clark employees, according to the bank. Buying Lewis & Clark will expand Maps’ footprint to include locations in Seaside and Astoria. Lewis & Clark counted $392.1 million in assets as of Dec. 31, 2023. Read more

Credit Union Leaders Cite Consolidation and Relentless Pursuit of Scale as Top Industry Challenges

CUToday

Noting the list is long, a panel of credit union executives addressed the major issues facing credit unions, pointing out that accelerating consolidation and the “relentless” pursuit of scale are at the top.

The group spoke during the second full day of VeleraLIVE annual conference being held at the Gaylord Rockies Resort & Convention Center. The group noted that macro trends focus on accelerating consolidation and the relentless pursuit of scale, unprecedented advances in technology and payments transformation, changes in consumer behavior, attitudes, and expectations, new waves of competition from large-scale incumbents and new entrants, and demographic shifts and changes in the future of work. All of those issues, the panel emphasized, are set against regulatory changes and the burden of compliance, cybersecurity, and risk management threats. Economic and geopolitical factors must be considered as well. Read more

Block Agrees to Pay $40M New York Penalty

Lynne Marek, Banking Dive

The payments technology company agreed to settle allegations related to lax oversight of its Cash App payments tool.

Payments technology company Block agreed to pay a $40 million civil monetary fine last Thursday as part of an agreement to resolve claims brought by the New York State Department of Financial Services over lax oversight of its financial services.

In particular, the state cited Block’s Cash App peer-to-peer payments tool as not satisfying state requirements for anti-money laundering, Bank Secrecy Act and know-your-customer compliance programs, according to the NYDFS.

Oakland, California-based Block, led by entrepreneur Jack Dorsey, operates in New York under a money transmitter license and BitLicense it has in that state. The company also owns Square, which enables payments processing for merchants. Read more

Apr. 11, 2025 News Around the States

California Seeks to Expand DFPI’s Consumer Finance Enforcement Authority with Senate Bill 825

Ross M. Speier, Kilpatrick

California Senate Bill 825 is aimed at expanding the state’s authority to enforce its consumer finance laws by eliminating an existing exemption for persons licensed by the Department of Financial Protection and Innovation (DFPI) if they engage in certain prohibited practices in connection with consumer financial products or services.

The bill was approved by the Senate Banking and Financial Institutions Committee on April 2, 2025, and is currently pending review by the Senate Judiciary Committee.

This update will provide an overview of SB 825, detailing its key provisions, examining the expanded enforcement authority it grants to the DFPI, and exploring how this legislation may address potential gaps in consumer finance enforcement authority left by the recent shift in regulatory priorities on the federal level.

A Summary of Key Provisions and Impact
California Senate Bill 825 (SB 825), introduced in the 2025-2026 Regular Session with the title “Consumers: financial protection” and amended on March 24, 2025, seeks to amend Section 90002(b) of the California Financial Code, which is part of the California Consumer Financial Protection Law (CCFPL). Read more

LAFCU’s $10K Innovation for Education Grant to Fund School Improvements

LAFCU is once again inviting Michigan K-12 schools to apply for its Innovation for Education grant by April 30 for a chance to receive $10,000 to enhance their learning environment. Schools can use the grant for flexible seating, updated technology, equipment upgrades, or special projects such as a school garden or sensory room.

Now in its second year, the LAFCU Innovation for Education (LIFE) grant continues to demonstrate the credit union’s commitment to enhancing education by awarding $10,000 to support schools in creating a more engaging and enriching environment for both students and staff.

“We recognize the challenges schools face in securing funding for essential improvements,” said Shelia Scott, LAFCU’s community financial education and business development officer. “This grant is designed to help create a more engaging and supportive educational space for students and teachers alike.” Read more

A Century of Service: Metro Credit Union Has Helped Generations of Massachusetts Families Achieve Their Financial Dreams.

“Everything we do revolves around the concept of ‘people helping people,'” says Robert Cashman, president and CEO of Metro Credit Union.

“As a not-for-profit financial institution, we have a different structure and philosophy than you would find at a bank. This gives us the opportunity to create products and services for our members rather than generating the highest profits for shareholders.”

Founded in 1926, Metro Credit Union is the largest state-chartered credit union in Massachusetts. Serving more than 220,000 members, the credit union boasts 18 locations throughout the Greater Boston area. Over his more than 40 years at the credit union, Cashman has seen Metro’s community-driven model benefit countless individuals, families, and small businesses.

“We’ve grown and thrived over the last century because we’ve stuck to our founding principles,” Cashman says. “We are owned by our members, and we’re here to serve them. Any revenue we make is returned to them in the form of better rates on deposit accounts, lower fees, and more affordable loans.” Read more

Early Returns ‘Exceeded Expectations’ for DFCU’s First Bank Buy

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Credit unions buying community banks has been a hot topic across both industries for years.

Less discussed, however, is whether the buyers involved in these transactions are ultimately finding what they are looking for. DFCU Financial in Dearborn, Michigan, for one, said so far things are going better than it anticipated.

The credit union has acquired two community banks in recent years. First, the $6.7 billion asset company – the third largest credit union based in Michigan – in early 2023 bought $689 million-asset First Citrus Bank in Tampa, Florida. Then last November DFCU announced its second whole bank acquisition in the Sunshine State with the purchase of $794 million-asset Winter Park National Bank in Winter Park. That deal has yet to close. Read more

Apr. 4, 2025 News Around the States

Swipe Fee Foes Find Legislative Support in Almost a Dozen States

Justin Bachman, Payments Dive

The battle to curb interchange fees has migrated from Illinois across the nation, with bills in 11 states seeing robust lobbying.

Inspired by an Illinois law, legislators in multiple states are working to ban card swipe fees on sales tax and gratuities, with proposals pushed by retailers and restaurateurs gaining momentum.

In recent years, merchants of all sizes have decried rising fees for customers’ credit and debit card transactions, propelling the efforts to curb interchange application to portions of consumer payments. Illinois enacted a law in 2024 to eliminate swipe fees on taxes and tips beginning July 1, 2025.

This year, 11 states including California, Colorado, Nevada, Texas and Vermont, are considering bills that carry “the highest threat of enactment,” according to the Electronic Transactions Association, which is hustling to block them. The ETA counts card issuers, processors and networks as members, including Bank of America, Fiserv, Mastercard and Visa.

“We are operating on high alert in all these states,” Scott Talbott, the ETA’s executive vice president, said Thursday. “Bills move quickly in state legislatures so we have to move even quicker.” This year, lawmakers in 10 other states have effectively scuttled bills seeking to ban swipe fees on taxes and tips, according to the ETA. Read more

ABA Moves for Summary Judgment in Illinois Interchange Lawsuit

ABA Banking Journal

Issue: Should the district court grant the American Bankers Association’s motion for summary judgment and permanently enjoin enforcement of the Illinois Interchange Prohibition Act (IFPA)?

Case Summary: ABA and its co-plaintiffs (collectively ABA) moved for summary judgment, asking the court to enjoin enforcement of the IFPA permanently.

The IFPA, which is set to go into effect July 1, 2025, prohibits financial institutions from charging credit and debit card interchange fees on the portions of transactions tied to state and local taxes and tips. The law also restricts the sharing of certain data obtained in the transactions.

ABA sued Kwame Raoul in his official capacity as Illinois attorney general and moved for a preliminary injunction, arguing that the National Bank Act (NBA), Home Owners Loan Act (HOLA), and Federal Credit Union Act (FCUA) preempted the IFPA and that the IFPA conflicts with the Electronic Fund Transfer Act. On Dec. 20, 2024, Judge Kendall issued a partial preliminary injunction blocking enforcement against national banks and federal savings associations, ruling the ABA was likely to win on the merits of its NBA and HOLA preemption claims. However, the court denied relief to federal credit unions because the FCUA likely did not preempt the IFPA and Illinois-chartered institutions due to sovereign immunity. Judge Kendall later extended the injunction to out-of-state state-chartered banks but not to federal credit unions. Read more

Credit Unions Converting to Mutual Banks – a New Paradigm

Jeff Cardone Luse Gorman, PC/Tyfone

As Congress considers legislation to reform U.S. tax policy, the credit union tax exemption is a frequent topic of debate and a point of contention during tax reform discussions and the reconciliation process that requires finding “pay-fors” to help balance the budget, with credit union taxation being strongly considered as a source of new revenue.

Lawmakers could tax all credit unions on par with banks or establish an asset threshold beyond which credit unions could be taxed, such as $1 billion in assets as recently proposed by bank lobbyists. With the looming threat of taxation, along with calls to consolidate the NCUA with other bank regulators to streamline government bureaucracy, credit unions are asking themselves if without the benefit of the tax exemption, why be subject to the limitations of the credit union charter?

Consequently, several credit unions are now considering the once inconceivable – a mutual bank conversion – to prepare for possibly losing their tax-exempt status and the elimination of the NCUA as an independent regulator. Read more

West Virginia’s BTC Reserve Bill Is ‘Freedom’ from a CBDC — State Senator

Christopher Tepedino, CoinTelegraph

West Virginia’s Bitcoin bill seeks to allow the state treasurer to invest up to 10% of state funds in BTC, stablecoins and precious metals.

West Virginia’s Bitcoin strategic reserve bill would give the state more sovereignty from the federal government and freedom from a potential central bank digital currency (CBDC), State Senator Chris Rose told Cointelegraph in an exclusive interview. The bill, introduced in February, seeks to allow the state treasury to invest up to 10% of public funds in precious metals like gold and silver, stablecoins, or any digital asset that has had a $750 million market capitalization or higher over the last 12 months. Currently, the only digital asset with such a market cap is Bitcoin. Read more

NC House Passes League-Supported Bill to Expand Credit Union Access In “Banking Deserts”

Carolinas Credit Union League, CUInsight

The North Carolina House of Representatives today passed House Bill 187, a League-advocated measure intended to expand financial service options in areas facing severe bank branch closures.

Sponsored by Reps. Julia Howard, John Bell, Jennifer Balkcom, and Ya Liu, the bill received broad bipartisan support and passed by an overwhelming 101-11 margin. Over the past decade, North Carolina’s most economically distressed counties have lost nearly 40% of bank branches, with about 650 fewer branches statewide than in 2013. Some counties—primarily in eastern North Carolina—now have as few as six branches combined, down from 27.

Currently, credit union membership is limited by defined groups, such as employer or association affiliation. HB 187 would allow credit unions to serve residents in communities with no nearby banking access, providing an alternative to costly financial services like payday lenders and check-cashing businesses. Read more