Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
iNY Timesi op-ed touts CU credit cards
WASHINGTON (6/24/09)--Though many traditional banks have chafed at recent changes to credit card regulations, saying that they are too restrictive and would ultimately hurt consumers, a New York Times op-ed said that these fears are “largely unfounded,” as credit unions have long been able to turn a profit under these same conditions without charging high fees and/or penalties to their members. In the op-ed, published on Tuesday, the writers said that recent studies found that credit union credit cards generally offered “lower annual fees and longer grace periods” than cards from traditional banks. “Credit union fees for exceeding the credit limit are on average just half those of other issuers,” the op-ed added. Additionally, the study found that very few credit unions raise interest rates if a credit union member fails to pay their credit card payment on time. Kiplinger.com also praised credit union cards in a recently published feature, recommending that customers that are looking for a “hardworking portfolio of credit cards” look to credit unions and community banks for their consumer loans. The op-ed also sought to dispel the belief that the corporate income tax exemption for federal credit unions gave them a substantial edge when competing with bank-managed credit accounts, saying that credit union lending practices meant that they would still “make profits” if they were taxed, “they would just retain less of them.” Overall, according to the op-ed, the consumer loan model that is used by credit unions is “absolutely” feasible for traditional banks, and “credit union cards are a great test case for how regular cards will perform under the new law.” Additionally, the evidence collected shows that “the credit card act is likely to bring about moderate, and even positive, changes” in credit card policies.
Other Resources

RSS





print
News Now LiveWire
.@PCISSC issues new pen test guidelines for businesses to identify network vulnerabilities @CUinfosecurity http://t.co/ENeGTPSMjf
41 minutes ago
#Georgia credit union parity bill awaits signature from @NathanDeal http://t.co/zbS4IZsOp6
54 minutes ago
IRS @IRSnews to offer April 8 webinar on UBIT #NewsNow http://t.co/hZIHF5RbH4
1 hour ago
.@LACULeague in @DailyComet: #creditunions' "old" benefits attractive to new generation http://t.co/AzOv3nB7IB
16 hours ago
At @FTC request, court halts operations of an alleged debt-relief scammer calling itself “FTC Credit Solutions.” http://t.co/qMsDBmKExH
21 hours ago