Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Bill prompts tax debate in Massachusetts
WORCESTER, Mass. (2/2/10)--Pending federal legislation in Washington, D.C., that would relax restrictions on credit union member business lending--to 25% of assets from 12.5%--is prompting debate in Massachusetts between credit unions and banks about lending and credit unions’ tax-exempt status. However, Dan Egan, CEO of the Massachusetts Credit Union league, told the Worcester Business Journal (Feb. 1) that “Banks contend that [credit unions] were set up for people of limited means, but that was never the case. They were set up for all consumers.” Since Massachusetts chartered credit unions in 1909, the institutions have acted as a check and balance for the banking industry, he added. Small businesses are turning to credit unions in greater numbers now because they’re finding they can’t get the loans they need from banks, or can’t meet banks’ new, stricter credit requirements, Egan told the publication. “The only ones who don’t want this are the banks,” Egan added. The tax-exempt structure is designed to help credit unions serve the underserved, Michael Lussier, president/CEO of Webster First FCU, Worcester, told the Journal. “We’re helping those people in the community, those blue-collar workers that are sick of being taken advantage of by high fees and lower interest payments,” he added. To read the article, use the link.
Other Resources

RSS print
News Now LiveWire
Sept. #NCUABdMtg is adjourned.
1 hours ago
.@TheNCUA : Positive TCCUSF net position does not mean that CUs will get a rebate. Final accounting likely in 2020 or 2021. #NCUABdMtg
1 hours ago
No Stabilization Fund (TCCUSF) assessment in 2014. #NCUABdMtg
1 hours ago
.@TheNCUA says TCCUSF repaid Treasury $300m during 2014 2Q #NCUABdMtg
1 hours ago
First Service FCU charter change approved by NCUA. Next up: TCCUSF report.
1 hours ago