After 92 years, credit unions remain affordable, accessible solution for all
“On June 26, 1934, Franklin Roosevelt signed his name to the Federal Credit Union Act, and in doing so made a commitment to ordinary Americans: that safe, affordable financial services were not a privilege for the wealthy but a right for everyone. Ninety-two years later, that commitment is being tested,” wrote America’s Credit Unions President/CEO Scott Simpson in a CUToday op-ed.
Simpson, while recognizing the 92nd anniversary of the Federal Credit Union Act, emphasized how credit unions have kept up their promise to provide accessible support to all Americans.
“Credit unions have served members through the Great Depression, World War II, the 2008 financial crisis, and a global pandemic. They contribute more than $352 billion annually to the U.S. economy, support 1.3 million jobs, and help finance homes, farms, and family businesses across every congressional district in the country. When a family finances a car through a credit union instead of a large auto lender, they save an average of nearly $10,000 over the life of the loan. That money stays in their pocket, and in their community,” he wrote.
Despite the impact credit unions create, the industry continues to face pressures within the marketplace. He highlighted banks’ control of assets, consolidation, and reduced lending.
“America's Credit Unions is not asking for special treatment. We are asking policymakers to understand what is at stake. When credit unions lose ground, real people lose access to affordable financial services, often with no alternative available to replace them,” Simpson stated, calling on Congress to recognize the importance of a financial system that serves everyone.
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