BANK ATTACKS. CREDIT UNIONS FIGHT BACK!

Banks want to eliminate credit union competition

We need your support to fight the banking industry’s relentless attacks on America’s credit unions. The attacks are serious — the American Bankers Association has ranked taxing credit unions as its number-one priority — ahead of combating terrorism!

At issue is credit unions’ tax-exempt status, a benefit credit unions and their members have enjoyed since 1937. Credit unions pay sales taxes and property taxes, but are exempt from income taxes because of our “not for profit” structure.

Banking groups know that a tax on credit unions will require hundreds of credit unions to close their doors and force the others to raise loan rates and lower deposit rates. In short, banks want to cripple credit union competition by adding taxes and restricting who we can serve.

The banking industry claims credit unions should be taxed because, they say, today we are no different from banks. How wrong they are! Consider the following:

• Credit unions are member-owned, non-profit financial cooperatives that offer services to members.
  
  Banks are for-profit, board and stockholder controlled financial corporations that offer services to customers. Bank customers do not own a financial interest in the bank.
  
  
• Credit unions operate under a one member, one vote system.
  
  Bank stockholders hold influence based on the total value of their stocks.
  
  
• Volunteer, unpaid directors lead credit unions.
  
  Bank directors are generously compensated for their service.
  
  
• Credit union earnings, minus operating expenses, are returned to the members through higher deposit rates and lower loan rates.
  
  The profits of a bank, minus operating expenses, are divided among the stockholders of the bank.

Ironically, banks continue to generate record profits despite so-called “unfair competition” from credit unions. In fact, banks recently reported their 15th consecutive quarter of record profits. To put this "David v. Goliath" fight into perspective, America's credit unions account for less than 5% of financial services assets, and the largest bank alone has assets greater than those of all 9,400 credit unions combined!

Please support our efforts by continuing your membership and by asking your legislative representatives to help credit unions maintain their tax-exempt status. Click here to write your representative today.

We will continue to update this site with the latest information about banker attacks and what you can do to help.

"By increasing lending opportunities to small businesses, families and workers, credit unions are contributing to our economic recovery and increasing opportunities in our communities. I support strongly the tax exempt status of credit unions, and will continue to highlight the important contributions that credit unions make to our financial system."
- President George W. Bush

"Today, credit unions help working families that do not have easy access to credit to pool their savings and make loans available at competitive interest rates... I want you to know that I will continue to support America's credit unions and oppose any efforts to change the existing tax-exempt status of credit unions."
- Sen. John F. Kerry (D-MA)

"I’m not for taxing credit unions. You start taxing credit unions, you know who’s going to pay the taxes – the members."
- Sen. Richard Shelby (R-Ala.), Chairman, Senate Banking Committee