Big Banks are coming after Credit Unions

  • Contact you state Rep

    Credit Union Vs. a Bank

    Credit Union Vs. a Bank: The CU Difference!

    You mPiggy Bankay have heard about credit unions, but do not have a clue about the difference between a credit union and a bank. See the side-by-side comparison below. Based on the information, see what financial institution is the best fit for your life style.

    Credit Union: (Noun) A not-for-profit financial institution that gives profit made back to members via lower interest rates on loans, higher interest on dividends, and more free products and services. 

    Credit Union Vs. a Bank: What’s the difference?
    Credit Unions Banks
    Not-for-profit cooperatives Institutions run for profit
    Return earnings  to members through lower loan rates, higher savings rates and free or low-cost services Return profits to a small group of stockholders at the expense of their customers
    Make loans only to their members, which both serves their membership and assures that capital remains within the community Often makes loans to outside borrowers, including foreign countries and commercial enterprises
    Have member/owners-each person who deposits money has a share of the ownership Customers have no rights of ownership
    Board of Directors is elected by the membership Customers have no voting privileges
    Have a volunteer Board of Directors that serves for no compensation Have a paid Board of Directors that serves for financial gain
    Can serve only those individuals within their field of membership Can serve anyone in the general public
    Are service driven and people focused Are credit driven and profit focused
    Believe competition benefits all consumers Try to eliminate competition through legislation and lawsuits

    Still have questions? See our frequently asked questions to answer potential questions you may have about credit unions and what we can do for you! Feel free to call us at 337-232-8450.

    How to join? See the process of joining a credit union here.

    Learn more about us.

  • A tax increase on credit unions is a tax increase on 1.1 million Iowans.
    • Credit unions are taxed differently because of their not-for-profit, cooperatively owned business model.
    • This model saves Iowans $100 million annually versus what they would pay at a bank.

 

  • Banks dominate the market with record profits; credit unions are providing choice.
    • Banks control 86% of deposits and 95% of business loans in Iowa.
    • Iowa banks have 6 consecutive years of record profits ($958MM in 2016).
    • Wells Fargo is bigger than all 5,800 US credit unions combined.

 

  • Credit unions serve Iowans that banks do not—they aren’t just like banks.
    • 85% of credit union loans are consumer; 28% of bank loans are consumer.
    • Banks are nearly twice as likely to deny a mortgage loan to a low-income applicant.
    • 48% of credit union business loans are less than $50,000.

 

  • If credit unions have it so good, banks should switch their charter.
    • They won’t, because banks have powers credit unions do not (trust services, no business lending restrictions).
    • And they would need to give up ownership to all customers.

 

  • If the legislature passed a tax increase, credit unions could change to a federal charter and the state loses revenue.
  • No state taxes credit unions differently based on size.
  • Congress recently reaffirmed credit unions’ federal tax status.
  • Banks just received an estimated $152 million dollar windfall with congressional tax reform.

Sample Call:

 

Hello Senator X:

 

As you may know, the bankers are trying to raise taxes on credit unions.  They are targeting our largest credit unions, but that would only be a starting point.  Credit unions pay millions of dollars each year to the State in property, sales, payroll and moneys and credits taxes.  We are taxed differently because of our not-for-profit, cooperative structure.  Given that, any tax increase is a tax increase on our member owners—1.1 million Iowans.  Banks are dominating the market with record profits and just got a $150MM tax break from congressional tax reform.  Would you please contact Senator Feenstra and ask that he not make any changes to credit union taxation?

 

Thank you,

 

 

Sample Email:

 

Hello Senator (Name):

 

As you may know, the bankers are trying to raise taxes on credit unions. They are targeting our largest credit unions, but that would only be a starting point. Credit unions pay millions of dollars each year to the State in property, sales, payroll and moneys and credits taxes. We are taxed differently because of our not-for-profit, cooperative structure. Given that, any tax increase is a tax increase on our member owners – 1.1 million Iowans. Banks are dominating the market with record profits and just got a $150MM tax break from congressional tax reform. Would you please contact Senator Feenstra and ask that he not make any changes to credit union taxation?

 

Thank you,

 

SAMPLE LETTER TO YOUR STATE LEGISLATORS

Today’s Date

Dear Representative (insert the lawmaker’s name here),

OR

Dear Senator (insert the lawmaker’s name here),

 

My name is (insert your name here) and I am a member of (insert your credit union name here) Credit Union. My credit union is important to me.

 

The bankers are advocating that a tax increase on credit unions be included as part of any tax reform package in the Iowa Legislature.  Please oppose any legislation that would raise taxes on credit unions, as that is a tax increase on me as a member.  My credit union has been there for me when I needed them. I want my credit union to be here in the future as well.

 

Please support Iowa’s credit unions.

 

Sincerely,

 

 

Sign Your Name Here

Your Address

Your City, IA, Your Zip

Your Personal Email

 

Randy Feenstra, R, Chair District 2 – Cherokee/Sioux Center 515.281.3371 (switchboard)
randy.feenstra@legis.iowa.gov
Jerry Behn, R District 24 – Jefferson/Boone 515.281.3371 (switchboard)
jerry.behn@legis.iowa.gov
Michael Breitbach, R District 28 – Decorah/Guttenberg 563.920.7399 (cell)
michael.breitbach@legis.iowa.gov
Waylon Brown, R District 26 – Charles City/New Hampton 641.590.0610 (cell)
waylon.brown@legis.iowa.gov
Jim Carlin, R District 3 – LeMars/Sioux City 712.253.4270 (cell)
jim.carlin@legis.iowa.gov
Dan Dawson, R District 8 – Council Bluffs 515.281.3371 (switchboard)
dan.dawson@legis.iowa.gov
Jeff Edler, R District 36 – Marshalltown 641.751.5902 (cell)
jeff.edler@legis.iowa.gov
Matt McCoy, D District 21 – Des Moines 515.681.9327 (cell)
matt.mccoy@legis.iowa.gov
Roby Smith, R District 47 – Davenport/Bettendorf 515.281.3371 (switchboard)
roby.smith@legis.iowa.gov

 

This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.