The credit union national organization is in a regulatory battle with the American Bankers Association with South Dakota the battlefield.
Credit unions make the bankers look bad and the ABA wants to crush them every way they can. There are many credit union misunderstandings. Credit unions are member owned cooperatives. By being member owned cooperatives they are designed to only have their members best interests as their primary mission. Lower loan rates, member community first. We used to have member owned credit union co-ops as part of many businesses and government departments. As time has gone on, the little credit unions have consolidated and became open ‘community’ credit unions, serving a larger cross section of the locality they are based. Remember the Bell Credit Union? How about the Morrell Credit Union? Air Guard, All American, and so many more. All of these have changed their missions or names as their associated companies or offices changed hands over the years.
Talk to a credit union member, you will see why they are for the most part a happier bunch. When you go into your credit union, you will often see the same faces you have seen for years. Stability in policy and function. Try to get this at your multi-national mega bank. So back to the battle, if you can’t beat the credit union on the PR front, kill the little buggers with state regulations and taxes.
In the South Dakota legislature this year is a movement to strip the non-profit / cooperative credit unions of their tax exempt status. The NCUA and ABA have been fighting for their versions of model legislation in the land of ALEC.
READ the plea letter here:Â Credit Union 2014