Last week, the Credit Union National Association published survey data showing significant gains by its members on last Saturday's Bank Transfer Day and in the month prior.
But how well did they really do? American Banker has a piece today examining whether their claims may have been exaggerated.
It cites potential problems with the survey methodology and Federal Reserve data that doesn't show significant outflows from banks.
CUNA, for its part, defended its results.
Friday, November 11, 2011
How well did credit unions really do?
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20 comments:
Has the Observer fallen so low that they have these 2 "wet behind the ears" covering an industry as important to Charlotte as banking? Give me a break! I could see them covering the party scene but there is absolutely no excuse for serious financial and investment writers to be let go and these unqualified kids replace them. Of course then you get drivel like this article (which has ABSOLUTELY no news - just speculation). At least take their photos off so people can be deluded into believing they are experienced and qualified!
I totally agree with your comments
"..Federal Reserve data that doesn't show significant outflows from banks." Just because people opened new accounts @ credit unions does not mean their "big bank" accounts were closed.
Credit Unions are the way to go. They make a tidy profit, but nothing compared to the greedy banks. CUs fees are low and penalties are low. They give sensible loans and carry low interest rates.
Mine refinanced my vehicles AFTER I was laid off. It made perfect business sense, lower my bills to get me through the tough times until I found another job (which I did). Name one greedy bank that would have done that. A bank would have repossessed my cars and left me unable to find a job. Banks are run by greedy men who don't care about their nameless customers. CUs will help you through the tough times. CUs are run by your neighbors and friends.
I "abandoned" big banks when they screwed me over by telling me I owed them money on a defunct account I had closed 6 years prior. They threatened to ruin my credit unless I paid up. I had no proof since it had been so long since I had closed the account. Banks lie in wait like snakes in the grass. I have only used credit unions since then and found they will do virtually anything you ask. They listen and help and aren't just after the almighty dollar.
Who needs banks?
Just become a Democrat and have the government steal from Republicans to pay your way for you...you don't have to work or be responsible for anything you do either!
Is this Dunn and Pittman's way of trying to debunk credit unions? Like, oh it wasn't that big a deal or something? Or maybe they're following the Observer's line of support for BofA and Wells Fargo, those two outstanding corporate citizens who've just lost lawsuits to the tune of mega-millions because of fraudulent practices?
Didn't Pittman used to write about weddings or dating or something? And who know where Dunn came from.
Guess all the CUs have been lying, huh?
Don't even need to read what "American Banker" has to say about this - already know their angle on this story.
Is this the best you two can do? Post a couple of links to other stories? Don't you have any original thoughts of your own? No data from local sources?
Oh, and the word is "examining", not "examing".
CU's might be run by your neighbors and your friends, but that just means your friends are failed bankers or accountants.
I'm happy with SECU; I'm lucy my parents were teachers, so I could get in there. Not sure that they are all that good.
It's way past time for a front page story discussing how credit unions are subsidized by the banks and tax payers. Credit Unions pay no taxes on their income so they can charge a bit less. They provide fewer services. Credit Unons were formed to serve special interest groups who had limited or no access to banks. Now anyone can join these "leech" financial institutions.
No free rids.....tax credit unions!
CU's pay no taxes because they are non profits. They serve their members and do not have to worry about paying dividends to investors because they are not capitalized by the market only by their members. Please think before you post anon 727!
Why are they not for profits moron? They make a profit and should pay taxes. Typical name calling, leftist leech. Geez
"No, it doesn't."
Ok, well lots of them are failed bankers or accountants. The rest of them couldn't get jobs in banks. Nobody leaves a bank voluntarily to go work for a credit union unless they are leaving a very small bank, and they know they have no chance of moving up in their current job.
This article left me with no more knowledge than I started with. Good job. All I can say is that I've banked with NCSECU since 1998 and I will NEVER go back to a big bank. I hate them all and always will.
END THE FED!
Actually, my bank left me; fees, more fees, arrogance from branch officers, cold and unhelpful, constant sales mailings and reminders that they were not increasing their share of my wallet. I live an "unexciting" life (by their standards) since I do not go over limit on checking, I pay credit balance on time, I save until I can pay for items I desire, and I am careful to compare costs for credit and financial services. My bank much preferred me to spend at every opportunity, "take advantage" of my credit standing by opening new accounts, and use my "overdraft protection" daily.
I went to a credit union and am pleased and will never return. My former bank does not want me.
Credit unions will be a financial mess in the future when there is a sharp increase in interest rates, because substantially all their loans carry fixed interest rates with maturities exceeding the deposits that fund them. This means their deposits will reprice much faster than their loans, it is very possible that most credit unions could see themselves with a negative net interest margin just like the savings and loans did in the early 1980's, and people said that would never happen. The old rule in banking is don't make long term loans when rates are low, yet it seems all financial institutions have forgotten this rule or think they can be the first out when the interest rate pendulem swings the other way.
Anonymous NOVEMBER 11, 2011 4:34 PM. Agreeded and I'll add you get what you pay for which in Pravda's case is not much.
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