Legislative & Regulatory Update

North Dakota HB 1378 threatened credit unions with costly regulations, but a united advocacy effort turned the tide.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

HB 1378: A Costly Mandate Credit Unions Couldn’t Afford—And We Stopped It
House Bill 1378 arrived in the North Dakota Legislature as a threat to credit unions, small lenders, and consumers alike. But thanks to a powerful, unified effort, we turned the tide. What began as a bill that nearly unanimously passed out of committee ended in a decisive defeat on the House floor, rejected in a stunning 78-14 vote.

At first glance, HB 1378 appeared to be a simple consumer protection measure, requiring lenders—including credit unions—to pay interest on escrow accounts for residential mortgages. But it was a burdensome and unnecessary mandate that would have forced credit unions to divert resources away from serving members to comply with rigid government regulations.

The Power of Advocacy
With its broad initial support, HB 1378 seemed destined for passage. But credit unions and our financial coalition knew the risks. It wasn’t about protecting consumers—it was an inflexible, government-imposed interest rate mandate that ignored market realities.

Through relentless outreach and engagement, credit union advocates made their voices heard. We took a bill that appeared unstoppable and turned it into a decisive failure. By the time the final votes were cast, the House floor was awash with opposition.

A Massive Win for Credit Unions
Had HB 1378 passed, credit unions—member-owned institutions focused on their communities—would have been forced to comply with unnecessary costs. Unlike big banks, credit unions don’t exist to maximize profits; they return earnings to members through better rates, lower fees, and personalized service. This mandate would have diverted critical resources, ultimately impacting borrowers through higher fees and fewer lending options.

Thank You for Making This Possible
This win happened because of the dedication of credit union leaders, employees, and advocates who engaged with legislators. Your calls, emails, and meetings made all the difference. Without your efforts, HB 1378 could have quietly become law, creating unnecessary burdens on credit unions and their members.

Together, we stood up, spoke out, and won.

This is the strength of credit unions in action—and proof of what we can achieve when we work together.

Stay Connected
For more information or to share your perspectives, feel free to contact me.  

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