Once upon a time, people could only join the PenFed credit union if they shared a “common bond” with other members through an affiliation with the military. Such restrictions were once offered as a reason large credit unions were exempt from paying federal taxes. How things have changed. Tysons, Va.-based PenFed rolled out a splashy […]
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2019 wrapped up in record fashion for the nation’s largest credit unions. And unfortunately for American consumers and taxpayers, what’s good for these so-called “not-for-profits” isn’t good for the people that pay the bills. Let’s consider just a few issues from the year that was. Unchecked bank buying – 18 deals in a single year. […]
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A credit union that enjoys an exemption from federal taxes has bought the naming rights to a 5,000-seat theater in downtown Phoenix, continuing a trend among large credit unions to stray far away from the modest mission established for the industry by Congress years ago, in favor of aggressive market expansion. Arizona Federal Credit Union, […]
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Thanksgiving may be behind us, but large credit unions continue to gobble up banks around the country in a “bank buying spree,” apparently unabated in their ceaseless money-grab that flies in the face of the very justification for the tax-exempt status. In the last two days, two of America’s largest credit unions have announced the […]
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Turns out credit unions might not be so great when it comes to customer satisfaction, a claim they use to justify their absurd tax status and ever-expanding, disingenuous expansion into markets with no logical “common bond” among members. The annual American Customer Satisfaction Index (ACSI) has found in its 2019 interviews of more than 300,000 […]
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Back in grandpa’s day, credit unions required a “common bond” for membership. That is, members who pooled their money to help those of “small means” needed to share a common employer, hometown, or go to the same church to enjoy special treatment from the government. Such quaint customs were considered when Congress offered credit unions […]
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Large credit unions continue to unabashedly flout the rules for their “not-for-profit” industry, and they’re only getting more brazen by the day. A few recent “highlights”: Ever-expanding so-called “field of membership” requirements to join. Has anyone been able to get $25 billion PenFed’s ubiquitous advertising ditty out of their heads, “Great rates for everyone”? (If that’s not enough, enjoy this (long) list of credit […]
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Credit unions were created in the 1930s with a noble purpose in mind: Pool the resources of people who shared a common bond to help relieve the financial struggles of people of modest means within their community of shared interests. Given such an important social mission, it made sense for credit unions to get help […]
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Shop Therapy: A Bank Buying Bonanza Large credit unions have been gobbling up smaller credit unions by the dozen, with 187 acquisitions last year, according to the Wall Street Journal. With fewer targets remaining, acquisitive not-for-profit credit unions have turned their attention elsewhere, buying a record number of banks. Credit unions have bought 21 U.S. […]
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We all know the sacrifices made each and every day by our men and women in uniform to defend our freedom. Shouldn’t we, in turn, ensure their freedom to select the best financial services to fit their needs? That can only happen if we allow our service members greater access to regulated on-base banking services […]
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