In case you missed it, check out a Times Magazine article on Should Credit Unions Have to Pay Income Tax?
The article notes that credit unions were given their tax exempt status because "they were often the sole source of financing for disadvantaged communities whose members had few assets and no way to prove their creditworthiness."
However, the author states "not all credit unions focus intently on bringing banking services to low-income communities" and points out that expanding the credit union business loan cap does nothing to further their public policy purpose.
The author concludes "with so many millions of Americans relying on check-cashing services and payday lenders, shouldn’t Congress be focusing on policies that aid credit unions in helping those folks?"
Credit Unions don't serve the undeserved and haven't for a long time, especially the big bank-like ones.
ReplyDeleteThanks Mr. Leggett.
ReplyDeleteThis is interesting and balanced. Only part he got wrong is the belief that credit unions give profit back to members.
Very few pay a special dividend.
The rest offer rates on loans and deposits that are competitive with banks and some are consistently better than banks and credit unions...