False attacks fail to recognize credit unions’ $37B in annual consumer benefits
Swiftly responding to the latest inaccurate bank attack, America’s Credit Unions, American Association of Credit Union Leagues (AACUL), and all state leagues wrote to Treasury Assistant Secretary Ken Kies Thursday with facts on the numerous benefits credit unions bring to consumers, Main Street, and the broader financial services industry.
Earlier this week, a group of bank organizations questioned the credit union tax status in a letter filled with misleading claims to Kies. Thursday’s letter provides data demonstrating credit unions deliver more than $37 billion in consumer benefits each year.
This is driven by lower loan rates, higher savings yields, and even indirect benefits for non-credit union customers as competition forces banks to improve their rates,” the letter reads. “A 2025 study by Dr. Robert Feinberg and Dr. Douglas Meade1 found this impact delivers a 1,200 percent return on investment—one of the best values for American consumers in the U.S. tax code.”
Despite the more than $37 billion in annual benefits, the credit union market share remains less than 10% of total industry assets, as it has since the enactment of the Federal Credit Union Act more than 90 years ago.
Credit unions continue to serve members who are in need of affordable financial services, and credit unions make the vast majority of loans to households, compared to banks that make most loans to businesses, the letter also points out.
In addition, credit unions continue to “cure” financial deserts by providing basic financial services for Americans left behind by banks closing branches.
“Over the past 13 years, banks have closed over 20,000 branches across the country. In comparison, credit unions have added hundreds of branches during that time, rushing in to fill the void and serve American communities left by banks,” the letter reads.
Advertisement
