The Situation Toon

Don't let the banker's tears fool you. The Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) will put a smile on the face of 89 million hard working Americans. (CLICK TO ENLARGE)

Taxing credit unions would make economy worse, says publication

Credit unions provide a vital balance wheel for America's lending economy and can help soften the blow of a credit crunch. Ending their tax exemption is "almost sure to make things worse," said a columnist in the National Review Online Monday.

A senior fellow at the Competitive Enterprise Institute, discussed a Treasury Department report that includes a proposal to tax credit unions $19 billion over the next decade. He said that taxing credit unions would affect the economy. He writes:

Not only would the 90 million or so Americans who belong to credit unions end up paying this tax directly, but the tax would likely ripple through the economy, restricting already tight access to credit, and making just about everything a bit more expensive.

Wow! That would take a bite from my wallet! Read the entire column here.

Biz Journal: 'Banks chase wealth, credit unions follow mission'

Though bankers claim that credit unions have left their mission "people helping people" behind, the Aug. 13, 2007 edition of the Hartford Business Journal reported that isn't the case. According to data compiled by the Journal credit unions are more likely than banks to open branches in areas where people have middle to moderate income levels. Too bad this little story gem is by subscription only!

A major motion picture: The Story of the Little Guy

This three and a half minute video chronicles the Little Guy's quest for a small business loan. Is he successful? Watch the this epic tale to find out.

Bank breaks $3 ATM fee barrier

As a college student preparing for a night out, I typically would visit the automated teller machine (ATM) and withdrawal $5 from my account. Back then it was free, as financial institutions enticed customers to the world of labor-less banking. Times have changed, indeed.

Bank of America said it is hiking ATM fees to $3 in most U.S. markets. The $1 hike in fees went into effect July 31 for most of the country, and will take effect Aug. 31 in markets in Illinois, New Mexico, New York, Nevada and Massachusetts, reports the San Francisco Business Times.

The fee will not be charged to BoA customers, who do not have to pay to use BoA ATMs. Also, the increase will not be charged at the 6,300 off-site ATM locations such as airports, colleges, convenience stores and malls. At these locations, non-customers will continue to pay a $2 surcharge.

Two years ago, BoA had its last surcharge increase going from $1 and $1.50 to $2 in some markets. The current industry surcharge average is $1.64, according to Bankrate.com.

Ouch!

Statistics from the Credit Union National Association indicate that the average amount of non-member surcharge on owned or leased ATMs ranged from $1.25 to $1.59, depending on credit union asset size.

MSN Money says, 'Ditch your bank for a credit union'

If you're sick of getting hit with fees, earning poor interest rates and being treated like a "nuisance" by your bank, according to MSN Money columnist Liz Pulliam Weston, it's time to leave and join a credit union.

As part of her story, she highlights the differences between banks and credit unions--an excellent indicator of why I love mine so much. But then Liz pulls out the "H" word:

Banks hate--hate--credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have pretty much been gunning for them ever since.

It's a good read. Check out her advice here.

The Situation Toon