A couple years ago, in response to Arianna Huffington’s “Move your Money” campaign, I moved my money from a regional bank to a non-profit credit union. I wasn’t alone, as the Guardian reports:
In the US . . . from the start of 2009 to mid-2010, 1.5 million members joined credit unions in a year – the number of new members usually expected in a 14-year period. When you examine how credit unions works, it’s easy to see why.
Unlike big banks, credit unions don’t engage in any form of casino finance. When you deposit money into a credit union account, it isn’t invested anywhere or gambled in any way. The only time it is used by the credit union is when it is loaned to other account holders; and even then it is guaranteed by an FSA scheme, meaning that it won’t be lost if the loan repayments aren’t met. Those who join credit unions are not customers, but members – like a co-operative.
I have been with a credit union member for over 30 years.
When the 2 big 2 fail banker were whining for multi billion dollar bailouts, my credit union refunded millions in mortgage interest overage to members. Those refunds have averaged around $400.
Proof positive that, in spite of the constant stream of bullshit about “Free Market” and “Competition” they spew forth, bankers put about as much faith in the free market as Christians place in Vishnu: Bank lobbing groups, lead by ALEC Corporate member ABA (American Bankers Association)are buying legislation that will strip credit unions of their non-profit status, thus requiring them to pay taxes.