Simpson strikes back against banker attacks with facts
Pushing back against renewed criticism from bank lobbyists that mischaracterizes credit unions’ not-for-profit, member-owned model, America’s Credit Unions President/CEO Scott Simpson argues credit unions’ structure is designed to return value to consumers through better rates, lower fees, and community reinvestment.
In a new op-ed in OpenBanker, Simpson rejects assertions that credit unions use their tax status to pursue predatory acquisitions or undermine small business lending. Instead, Simpson explains that bank-to-credit-union mergers are voluntary, board-approved transactions that often preserve local access to financial services, particularly as banks close branches and retreat from communities.
“The data is clear: What the credit union tax status actually enables is lower rates on loans, higher rates on savings, better customer service, and an institution that is focused on member financial well-being rather than squeezing every penny possible out of them,” he wrote. “Bank-to-credit-union mergers are voluntary, market-based transactions approved by the selling bank’s board of directors.”
Simpson points to independent research finding that credit unions increase competition and save consumers an estimated $23 billion annually, while contrasting banks’ widespread branch closures with credit unions’ net branch growth. He also cites data showing that small business lending frequently increases after credit unions acquire bank branches, as well as a recent national survey that proves when Americans are asked directly how they feel about credit unions acquiring banks, they side overwhelmingly with credit unions. “The public is not confused about who is acting in their best interests,” adds Simpson.
“Bank lobbyists may continue to recycle talking points, but the facts, and the public, tell a different story. This is the distinction between rhetoric and reality,” he concludes.