ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release May 17, 2005 #05-28
E-mail: [email protected]

ACB URGES FEDERAL ELECTION COMMISSION TO APPROVE PAYROLL DEDUCTIONS

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WASHINGTON, D.C. — America’s Community Bankers urged the Federal Election Commission today to adopt a rule allowing companies to use payroll deductions to collect political contributions to be forwarded to the political action committee of the company’s national trade group. ACB petitioned the commission to undertake the rulemaking in 2003.

“In adopting this rule, the commission will provide the opportunity for more individuals, employees and small businesses to make voluntary contributions in a convenient manner,” testified Diane Casey-Landry, ACB’s president and CEO. “Increased participation in the electoral process is a goal we can all support.”

Casey-Landry said that throughout the rulemaking process, the commission “has received overwhelming support for this effort.” She said the commission has drafted a “straightforward, simple rule” that should be adopted as proposed.

Casey-Landry reported that when ACB offered its employees the ability to contribute to COMPAC, its affiliated political action committee, “we saw a significant increase in our participation levels, as well as in overall dollars contributed to the PAC.”

Since 1976, when the prohibition on the use of payroll deduction took effect, much has changed in the payment habits of consumers, Casey-Landry said. “Americans have adopted electronic payments as their preferred means of completing financial transactions at a rapid pace.”

Today, 135 million people in the United States use direct deposit for paychecks and more than 50 million households use direct payments to make at least one monthly payment electronically. “Payroll deductions have become a preferred method of making payments because they allow individuals to better manage those payments over time,” she added.

Casey-Landry explained that payroll deductions have become the preferred method of making payments because consumers are demanding more convenience and greater control over their finances; convenience comes in the ability to have payments and deposits completed quickly, conveniently and more safely; and payroll deductions are a “painless” way to make payments by spreading them out over the year.

Click here for the testimony.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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