Defense CUs Challenge Pentagon Over ‘One Bank, One CU’ Rule

Credit Union Journal, The, May, 2008 by Ed Roberts, Washington Bureau Chief

Defense credit unions are petitioning the Department of Defense to halt a new credit card offered by JP Morgan Chase that is sponsored by the Army and Air Force Exchange Service, which operates all post exchange (PX) and base exchange (BX) retail outlets at military installations around the globe, saying the card violates the Pentagon’s own prohibition on having the exchange operate banking services.

The credit unions, who have been joined by on-base banks, also claim the Chase card violates the DoD’s long-time “one bank, one credit union” rule which approves only a single bank and credit union for each military base. “The question is, ‘is Chase going to be allowed to come on the military bases now,?” said Kenneth Leonard, president of America’s CU, which operates at Fort...

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