Military Credit Unions Fight Reform Fee

The Hill reports that credit unions representing members of the military are pressing lawmakers to oppose a piece of the financial reform bill that would likely end up costing members of the military.

The bill, which is currently being looked at by the House Financial Services Committee, would place a fee on financial institutions with more than $10 billion in assets.

The Hill reports that the Pentagon's credit union has roughly $14 billion in assets, while the Navy's credit union has $40 billion, according to the National Credit Union Administration.

The fee is intended to pay for the cost of future government takeovers of major financial firms. The National Association of Federal Credit Unions and the Credit Union National Associations have both argued to members of Congress that credit unions should not be required to pay for the collapse of the financial industry.

"Military credit unions and their members that behaved responsibly should not be penalized for the management failings of other institutions," wrote Retired. Vice Adm. Norbert Ryan, Jr., president of the military officers association, wrote in a letter to lawmakers on the Financial Services panel.

The push comes at a time of frantic lobbying efforts by the banking industry over financial reform efforts. USA Today wrote earlier this week that banks and credit unions came under fire from members of the House Financial Services Committee for regularly paying consumers' overdrawn transactions and then passing on excessive fees to costumers.

From USA Today:

These fees have bolstered banks' balance sheets during the recession while turning debit cards -- which the industry often advertises as a product to help you manage your money -- into a debt trap for some consumers.