Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
INew YorkerI Move to CUs to deal with megabanks
NEW YORK (10/27/09)--Consumers will have to rise up “en masse” and move their money to credit unions before the market will deal with megabanks’ problems, according to a recent article in the New Yorker. The author, James Surowiecki, noted that big banks--like Wells Fargo, Citigroup, Bank of America and JPMorgan Chase--have even gotten larger, controlling nearly 40% of the country’s total banking deposits and two-thirds of credit cards (The New Yorker Oct. 26). Banks’ growth isn’t because of their customer-friendly philosophy. Instead, they’ve done the opposite by charging higher fees than other institutions. But many customers and clients haven’t moved on because switching from one financial institution to a credit union is often considered a hassle. “A 2001 study showed that the cost of switching a loan came to about a third of the loan’s annual interest rate,” Surowiecki wrote. “Even if people are dissatisfied with their bank, it’s usually cheaper not to fight than switch.” Still, he encouraged consumers to move their money to credit unions. Only then will the market have to deal with the problem of megabanks, which means Washington will then have to deal with them, he wrote.
Other Resources

RSS print
News Now LiveWire
Why is a #creditunion a good fit for you? http://t.co/i4pGT98mkT via @MONEY
15 hours ago
The numbers are in: Home Depot data breach impact on #creditunions = $57.4 million, 7.2 million credit/debit cards http://t.co/jorYSOYuxj
16 hours ago
.@Nussle : We'll back off when retailers accept their breach responsibility #NewsNow http://t.co/7WxDXicb6j
18 hours ago
RT @asmarterchoice: RT @daily_finance: Top 5 money management tips for 30-somethings http://t.co/mWRfDRSTE7
18 hours ago
Operational efficiencies focus of new @CUNA program #NewsNow http://t.co/qBYHKVYeQN
18 hours ago