Report: Credit Unions Are a Financial Services Haven

I thought the term "sub-prime" was some type of U.S.D.A. meat rating. That is until we all started hearing about "exotic loans," "teaser rates," and "mortgage meltdown." Ugh.

Perhaps I was unaware because my credit union shielded me from such nonsense--that's the word on the street, anyway. That's thestreet.com, which says "Credit Unions Give Banks a Run for Their Money." To quote:

"Credit unions are somewhat of a financial services safe haven in today's volatile consumer loan market. They avoided much of the sub-prime debacle by not offering the types of exotic loans and teaser rates that were widely available at the time."

Is that conclusion any surprise? Shouldn't be--since credit unions are ultimately only responsible to their owners, who collectively (and cooperatively) own the place.

TheStreet.com also pointedly notes that's in opposition to banks--which are responsible only to their shareholders.

TheStreet.com, in the posting titled "Credit Unions Give Banks a Run for Their Money," also points out how many credit unions are developing "innovative products to attract customers."

Among them: Credit cards, which the posting quotes Linda Sherry of Consumer Action as saying:

"You should be able to expect fairer terms from your credit union because [it] is owned by its membership, not a profit making entity. Not all credit union credit-card contracts contain arbitration clauses, for instance, which leaves members free to settle disputes through the court system, rather in front of someone who works for a private group often chosen by the bank."

Check it on TheStreet.com ...