Simpson to Congress: Credit unions drive down consumer costs

Tired arguments from the banking industry against credit unions don’t hold up to the facts. Writing to Congressional offices on Monday, America’s Credit Unions President/CEO Scott Simpson addressed a recent bank trade group op-ed containing several glaring inaccuracies.  He spelled out the bankers’ perpetuated myths versus real credit union facts. These include:

• Credit unions use their tax status to offer lower-cost loans, higher savings rates, and financial counseling services, not any other purpose;
• An accurate reading of Small Business Administration (SBA) data shows that banks that sell to credit unions rarely participate in SBA programs.  However, those same branches increased their small business lending after selling their assets to a credit union;
• Credit unions’ tax status is due to their not-for-profit cooperative structure, no matter the size. Credit unions of all sizes offer better prices and services because they aren’t focused on making money off their members; and
• Despite claims of fairness, bankers would like Congress to eliminate credit unions so they can charge more. Research shows the presence of credit unions in a local market drives down costs and improves products for consumers, and Americans benefit by approximately $23 billion each year due to this competition. 

America’s Credit Unions will continue to counter false and misleading bank attacks with the facts that show undisputably credit unions are consumers’ best financial partner.