SACRAMENTO, Calif. (7/13/15)--California and Nevada Credit Union Leagues President/CEO Diana Dykstra remained on the offensive last week in refuting unfounded claims made by banks about credit unions.
In an op-ed in the Sacramento Business Journal, Dykstra explained that banks seem to forget that Congress granted credit unions their not-for-profit tax status in 1937 because they are member-owned and controlled.
“And (the banks are) mistaken that credit unions pay ‘nothing,’” Dykstra wrote (Sacramento Business Journal July 10). “They do, in fact, pay taxes--including payroll, sales, unrelated business income and real estate property taxes.”
“By their very definition, credit unions serve all their members,” Dykstra added. “They provide a full range of products and services to the communities they serve, including the underserved.”
Dykstra also noted that credit unions protect consumer interests simply by existing.
By providing competition to banks, credit unions force all financial institutions to offer competitive rates and fewer fees.
“The bottom line is the credit union tax status is simply about our structure and service,” Dykstra said. “Whether it’s business loans or an auto loan, the credit union’s mission does not change: It is to serve the member-owners of a nonprofit cooperative. The rest is just rhetoric from the competition.”