ALEXANDRIA, Va. (1/10/13)--The Credit Union National Association (CUNA) is prominently featured in a positive article about credit unions' growth in Wednesday's The Motley Fool. The conclusion the article makes: Credit unions are "good news for tough times."
CUNA, in the article entitled "Americans Keep Fleeing Banks, Flock to Credit Unions Instead," noted that credit union membership hit a record high in 2011 and again in 2012.
The article also featured third quarter 2012 statistics from SNL Financial about credit unions gaining ground against the competition in credit card loans. Credit unions' credit card loans to consumers topped $38 billion, a nearly $2 billion or 5% increase over third quarter 2011. The same loans at commercial banks totaled $669 billion--down $2 billion for the same period.
The Motley Fool attributed the surge in the interest in credit unions to "highly publicized efforts by commercial banks to load up their customers with new fees," banks' role in the 2008 financial crisis, and banks' fight to preserve high rates, fees and other policies.
Credit unions are "doing a lot of things right," the Fool said. It told how credit unions' not-for-profit model helps consumers by keeping costs honest. Credit unions lack any incentive to raise costs, it said.
"None of this is good news for investors in banking stocks," said the Fool. "But for consumers, fed up with the high cost of traditional "banking"? It's good news for tough times."
Use the link to read the full article.