The Utah credit union campaign backing 1st Congressional District GOP candidate Rob Bishop — opposing his Republican opponent Kevin Garn — is having some financial fallout.
Julie Kenley, owner and president of Kenley Ford, Layton, says she will no longer do car financing and insurance business with America First Credit Union.
America First is the state's largest credit union with 300,000 members. Like a number of other credit unions, it's following the lead of the Utah League of Credit Unions in mailing tens of thousands of postcards and newsletters to its members supporting Bishop, criticizing Garn.
Bishop is a part-time lobbyist who in 1999 worked for the league before the Legislature. Garn is a part-owner of a Layton bank and sits on its board of directors.
While the league is organizing the mailings, individual credit unions are paying for the mailings.
"It may be legal for a nonprofit credit union to take some of its members' profits and spend them on a political campaign, but it is not moral or ethical," Kenley said Friday. "I've instructed my finance and insurance people not to do any business with America First."
Kenley said Kenley Ford, one of the largest Ford dealerships in northern Utah, "has not been doing a lot of business with America First, not yet." She could not name an amount that America First would lose from her dealership. But a new program at the credit union had potential for more auto financing business; and that won't happen now, she said.
"It's a personal decision on my part," she said. "What they are doing is not right."
"It concerns me, yes, to lose any business," whether it is associated with political activity or not, said Brent Allen, executive vice president of America First Credit Union. Allen said he had not spoken to Kenley and so couldn't confirm that she was pulling her America First business.
Allen couldn't say how much his credit union had spent on two mailers. "We haven't added up all the bills yet." Scott Earl, president of the Utah League of Credit Unions, the statewide industry association, says while some of the mailings have a political element, they are legal under state and federal law and are really communication between the unions and their members.
Even if the credit union's activity in the 1st District race is losing America First some business, Allen said it was not a mistake. "Our experience with Kevin is that he is not a credit union supporter" and his members should know that, Allen said.
Garn said he has an idea how much it costs for a direct mail piece to 1st District residents. Assuming a planned third credit union mailer goes out over the weekend, Garn said the credit unions' campaign against him will cost more than $150,000.
A battle before the Legislature between banks and credit unions spilled over in 1999 when a "compromise" bill outlining how the nonprofit credit unions can compete with the for-profit banks passed. But that shaky peace has since been broken, and credit union officials recruited and financially supported several legislative candidates in the 2000 elections.
Garn sits on a bank board, and Earl and Allen say Garn has not supported the credit union causes in the Legislature. Garn just last week resigned his Utah House seat, stepping down as majority leader as well.
"Kevin has been pro-bank in the Legislature," said Allen. "Both Kevin and Rob would make good congressmen. But our support goes to Rob."
Bishop, a 28-year veteran teacher, is a former Utah House speaker who lobbies the Legislature part time. Financial disclosure forms filed with the U.S. House shows Bishop last year made as much money from lobbying as he did as a history teacher at Box Elder High School.
Garn is a millionaire who has put $680,000 into his race so far. Bishop accuses Garn of trying to buy the GOP primary race. Garn says the credit unions are just buying Bishop. "When you spend $150,000 on someone's campaign, you expect something in return," said Garn.
Allen said America First will make all formal disclosure filings when they are due. "I believe we'll disclose how much we spent" on the mailers "as a contribution to Rob's campaign. But whatever form the filings take, we will fully comply with the law," he said.
E-mail: bbjr@desnews.com