Legislative Update with Kenley

Updates on Summit auction donations, primary election participation, and advocacy efforts around the FTC Holder Rule.

By Kenley Lamberty, DakCU Director of Political Strategy and Engagement
 
Summit Auction Items Still Needed!
As a reminder, our silent auction will once again be a highlight of this year’s Dakota Credit Union Association Annual Summit,  May 12- 14,  and is a meaningful way to give back. From unique experiences and high-end tech to themed baskets and local favorites, the auction always brings a fun and competitive energy while supporting an important cause.

We’re still looking for great auction items, so if you have something special, you’d like to donate, please let me know soon so we can prepare the listings in advance. Every contribution big or small helps make this fundraiser a success.
 
Proceeds directly support the Roger Heacock Scholarship, which provides opportunities for credit union professionals from the Dakotas to attend national advocacy events in Washington, D.C. It’s a powerful way to strengthen our industry’s voice and ensure our movement is well represented on Capitol Hill.
 
Early Voting Is Open Now — Make a Plan to Vote
Voter Registration Deadline: May 18
The Dakota Credit Union Association is encouraging credit union leaders, employees, and advocates to take part in South Dakota’s June 2 primary election by voting early or on Election Day—and to make sure they are registered before the deadline.

Under state law, voters must be registered no later than May 18 to participate in the primary election. South Dakota does not offer online voter registration, so eligible voters must complete, sign, and submit a registration form to their county auditor by the deadline.
 
Participation in the primary election is an important way for the credit union movement to make its voice heard. Decisions made by elected officials directly impact credit unions, including regulation, taxation, and support for community-focused financial institutions. Strong civic engagement helps ensure policymakers understand the value of the cooperative, not-for-profit credit union model.
 
Early voting is open now, making it easier than ever to participate. We encourage all members to check their registration status, make a voting plan, and cast their ballot.

Official voter registration information and forms are available through the South Dakota Secretary of State’s Office at www.sdsos.gov.
 
Dakota Credit Unions Urge FTC to Reconsider Holder Rule Guidance
This week, Dakota credit unions joined a national letter from America’s Credit Unions urging the Federal Trade Commission (FTC) to withdraw its 2022 advisory opinion on the Holder Rule. The Holder Rule requires certain seller‑arranged loans to allow consumers to raise claims against the lender, but it also includes a long‑standing cap that limits recovery to the amount the borrower actually paid.
 
The FTC’s 2022 guidance says that this cap does not apply to attorneys’ fees allowed under state law. In practice, this means credit unions can face liability many times larger than the loan amount—largely driven by legal fees—even when they had no role in a seller’s misconduct. This issue has already caused significant problems in solar lending, particularly in California, but it also applies to auto loans, home improvement financing, buy‑now‑pay‑later products, and other seller‑arranged credit nationwide.
 
The letter asks the FTC to withdraw the 2022 advisory opinion, reconsider earlier guidance that expanded the rule to larger loans, and reaffirm the original, common‑sense limit on recovery. Credit unions believe restoring clarity and predictability will better protect consumers while preserving access to affordable credit.

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