Illinois Credit Unions' Free Ride

Although they portray themselves as mom and pop shops for people of modest means, today credit unions are a $1.3 trillion industry, with many indistinguishable from banks. The BIG difference – they don’t pay federal income taxes, depriving the U.S. Treasury of roughly $2 billion every year.

Federal Income Taxes Paid by Credit Unions

$0

Federal Income Taxes Paid by Credit Unions
Federal Income Taxes Paid Annually by an Average Illinois Resident Making $60,960/Year

$0

Federal Income Taxes Paid Annually by an Average Illinois Resident Making $60,960/Year

Fast Facts

  • Financial Partners Credit Union (Springfield, Illinois) was assessed a civil money penalty by the Illinois Department of Financial and Professional Regulation for violating the regulatory unsecured loan limit to a borrower.
  • The Illinois Credit Union League tried but failed to get legislation passed that would have made civil penalty orders confidential. Under HB 1572, the Department would have been prohibited from disclosing the civil penalty order to any person, except that once such an order is a final administrative decision of the Department and has been adjudicated to finality, a concise syllabus of the order may be posted on the Department’s official website.
  • The Consumer Financial Protection Bureau (CFPB) ordered Continental Finance Company LLC, a subprime credit card company based in Delaware, to refund an estimated $2.7 million to approximately 98,000 consumers who were charged illegal credit card fees. According to the consent order, a credit union, which was not fined, contracted with Continental to issue fee harvesting credit cards.