Congress exempted credit unions from paying federal income taxes during the Depression to encourage their unique mission of serving small groups of consumers of modest means, united by a common bond. Much has changed over the past 80 years. Today, there are more than 300 credit unions with assets of more than $1 billion. Most serve anyone who walks in the door — all while paying nothing in federal income taxes.

Here are the three biggest problems with how they work:

Stretching the Common Bond:

Credit unions were founded on a simple concept of a common bond, where members all came from the same employer, church, school, or community. That concept is no longer relevant at many of the largest credit unions, where almost anyone can join.

Neglecting Regulation & Oversight:

The National Credit Union Administration (NCUA), the credit union regulator, decides the size and scope of the federal income tax exemption by deciding whom credit unions can serve. NCUA seems to believe its charge is to make the credit union industry larger—no matter the cost to the taxpayer. They have consistently allowed large credit unions to expand and swallow up smaller credit unions and banks, and stray from their mission.

Leaving People Behind:

Even though credit unions were created to provide credit to the average consumer, data show they are doing a worse job than ever serving low- to moderate-income households. These households now make up only one-third of credit unions’ total customer base.

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Congress never intended for tax savings to be squandered on marketing, executive pay, and sponsorships.

American taxpayers will have to pick up the credit unions’ tab to the tune of more than $20 billion over the next 10 years.

We cannot continue to tolerate the mission creep of large credit unions while the American taxpayers bear the burden.