Outdated Regulations

Modern credit unions have outgrown their preferential tax and regulatory treatment. Instead, they are focused on prioritizing affluent markets and commercial lending over their original mission of providing consumer-focused financial services to people of modest means. As these supposed nonprofits leverage their tax status to purchase banks and other credit unions, more than 400 credit unions now boast more than $1 billion in assets. 

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Expert Views

Karen Shaw Petrou, Federal Financial Analytics, Inc.
“Credit-union regulation is often premised on profit maximization, not mission compliance....”  
— Federal Financial Analytics, Inc, 2019
Rob Taylor, Idaho State University Credit Union
“I have colleagues from other small credit unions who share my frustrations. The problem with our movement is most of us have been indoctrinated to believe our common enemy are bankers when in fact the real threat to our future lies within our own industry. If taxation is in our future, then let it be with the large bank-like credit unions, so the entire movement doesn’t suffer from the actions of a few.” 
— Credit Union Journal, 2021
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Recent News and Insights


The $620 million First Commerce Credit Union in Tallahassee, Fla. revealed plans to purchase and assume certain assets and liabilities of the $248 million Citizens Bank in Nashville, Ga.


A 740,000-member credit union in Utah was sued in 2019 for allegedly misleading its members about its overdraft practices and collecting millions in overdraft fees on debit card transactions that shouldn’t have been assessed. – KUTV, June 2019


The former CEO of New York’s oldest credit union pleaded guilty on Monday to charges he embezzled millions of dollars. Kam Wong, 62, ex-CEO of New York’s Municipal Credit Union, faces up to 30 years in prison. Wong also agreed to forfeit at least $9.9 million and to pay at least $9.9 million in restitution to the credit union. – New York Business Journal, November 2018


Arizona’s OneAZ Credit Union plans to open multiple branches as part of a plan to double its Assets in the next five years.


Mazuma Credit Union signed a five-year contract in 2015 to sponsor Major League Soccer’s Sporting Kansas City, also helping to construct the Mazuma Mezzanine at the arena.

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