Banks attacking the credit union are undermining the American civil sector, wrote a group of political students and young professionals The Washington Times. The article response to bogus bank claims recently made about the “cost” of credit union tax status and bank sales to credit unions.
“The bankers’ attack on credit unions is misleading in its portrayal and misguided in its attack on the civil sector,” the article reads. “Credit unions seem an easy target because they can handle large sums of money, but at their core they serve an important civic function. Policy makers should be wary of unfounded attacks on their legitimate charitable status in order to preserve the American community spirit. “
The article adds that the credit unions have never bought a bank’s charter, which is illegal, but rather what “has happened about 35 times in the past eight years, each time after the bank’s decision on who its board of directors was initiated decides to sell the bank’s assets and / or deposits is not a credit union buying a bank. “
The group also cites CUNA’s response to some of these bank claims that the transaction will provide the state with income through capital gains taxes and will continue to receive income taxes.
“Most importantly, credit unions and banks are essentially different animals, even though they perform similar functions. Rather than exist to fill their shareholders’ coffers, credit unions typically pass on their profits by offering lower interest rates on loans. They charge less fees and offer their members higher APYs on savings accounts, ”the article says. “Indeed, credit unions serve an important civic role for people who don’t want their money parked in a traditional for-profit corporation.”