Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CUNA in media on credit card fees CU difference
MADISON, Wis. (11/10/10)--Mike Schenk, vice president of economics and statistics for the Credit Union National Association (CUNA), was quoted in two media outlets this week regarding bank’s credit card fees, and how credit unions are fundamentally different than banks. In the past, banks were making billions of dollars annually in fees and other charges when they issued credit cards, according to WalletPop (Nov. 8). Consumers often perceived these fees as sneaky hidden or even downright deceptive, which led to recent legislation--including the CARD Act, the Fed’s Regulations Z and other rules prohibiting many bank practices related to credit cards, WalletPop said. “What we’ve seen is with the passage of the CARD Act, essentially a lot of the nuisance fees have disappeared,” Mike Schenk, vice president of economics for the Credit Union National Association, told WalletPop. “Having said that, the issuers still need to make money on the cards they issue. They're thinking of new, creative ways to make up for the legislated losses.” Regarding the credit difference, their structure makes them fundamentally different than banks, Schenk told Yahoo! Finance Tuesday. Credit unions are "fundamentally different from banks because they are not-for-profit and member-owned," Schenk, told Yahoo! Finance. Because credit unions generally are “in the business of maximizing returns to members rather than shareholders,” they can often take operational discounts and offer services at a lower cost than many banks can, Schenk added. Today, those services include free checking. To read the articles, use the links.
Other Resources

RSS





print
News Now LiveWire
16.9% of U.S. homeowners underwater, down from peak 31.4% in 2012, reports @zillow http://t.co/EbILqY1HMz
15 hours ago
Breaking at #NewsNow: President Obama signs IOLTA bill into law. http://t.co/5N741Bygmn
16 hours ago
.@edmunds says the week between Christmas and New Year's is the busiest car shopping time of the year.
17 hours ago
.@CFPB sues Sprint for cramming 3rd-party service fees onto consumers' bills http://t.co/mhlMWqLKku
18 hours ago
#HomeDepot #databreach lawsuits consolidated in Georgia http://t.co/A4bei5z0mV
18 hours ago