Wisconsin CU League News Release - 08/25/10
WBA’s swipe at credit unions to serve more underserved is shameful
Banks’ own refusal to make loans has imperiled one of the largest underserved groups – small businesses
Thompson says it’s outrageous for banks to claim they do a
better job than credit unions in serving the underserved when it’s
been the banks that have virtually shut off the credit spigot for small
businesses, creating a void for loans that credit unions can’t
completely fill under current law.
“It might be funny if the future of many small businesses were not at stake, but we’re talking about thousands of jobs that could disappear and otherwise sound enterprises that are being jeopardized because banks can’t or won’t lend to these small businesses,” he added.
“The broken record is repeating,” Thompson said.
“WBA quotes the same flawed, disavowed studies about credit
unions, once again misstates the mission of credit unions and claims
that credit unions’ member-favored pricing for financial services
somehow constitutes a subsidy.”
In fact, Thompson explains, credit unions return $200 million to members annually in the form of better rates on loans, higher rates on deposits and lower or fewer fees. He adds that credit unions’ record membership growth, attributed to the financial benefits of owning one’s financial institution, has been lauded in the press. More consumers – including the financially underserved – have flocked to credit unions during financially challenging times because credit unions will help people in ways than banks won’t. Not-for-profit credit unions exist to serve members, not make profits.
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