Latest credit totals nearly $1 million; Cumulative sum reaches nearly $16 million
Naperville, IL., January 26, 2015 – State-chartered credit unions in Illinois are ringing in the fifth calendar year in a row with a major improvement already on their bottom line — an aggregate credit of $962,384 — thanks to unparalleled legal action taken by the Illinois Credit Union League (ICUL).
The latest credit is 79.25% of the total 2014 4th quarter billing to credit unions for regulatory fees — almost a total 4th quarter fee holiday. Between an initial cash settlement of $6.2 million, regulatory fee holidays or credits realized in seven of the past 23 quarters totaling nearly $5.2 million, and a rate reduction of $4.4 million in regulatory fees paid to the DFI since the settlement was reached, Illinois state-chartered credit unions to date have realized a cumulative benefit of nearly $16 million.
“There aren’t too many examples of an association actually being the cause of a return of money to its members,” said Sean Hession, ICUL CEO & president. “The real victory is the nearly $16 million in credits that Illinois state chartered credit unions have received in the aggregate as a result of the settlement reached with the State of Illinois. We will continue to have dialogue with the State about the utilization of the regulatory fees it collects to enhance the exam process.” These regulatory fee credits continue to occur because of legislation initiated by ICUL to implement the court-approved settlement of the regulatory fee case it filed against then Governor Rod Blagojevich in 2004, which was signed into law by Governor Patrick Quinn in 2009. Under the terms of the settlement, Illinois state-chartered credit unions received a cash payment from the State, which represented a credit for the
overpayment in regulatory fees made under the Blagojevich Administration’s fee escalation and transfer (“sweep”) budgetary arrangement adopted by the State. The 2009 legislation also codified a rate reduction in regulatory fees on a going forward basis and reduced the Credit Union Fund margin that triggers a credit back to Illinois state-chartered credit unions.
“The most recent credit shows the prosecution and favorable settlement of the regulatory fee case nearly six years ago remains advantageous for our credit unions today and is an excellent example of the value of League affiliation,” said Stephen Olson, ICUL executive vice president and general counsel.