Chairman’s letter: Banks costing taxpayers

WARMINSTER, Pa. (1/6/09)--Banks are forcing credit unions to spend millions of dollars that could be used to better serve members, according to the chairman of a Pennsylvania credit union.

Joe Yerkes, chairman of Freedom CU in Warminster, recently wrote a letter to the editor of The Intelligencer (Dec. 29) saying banks are misusing government bailout funds and are costing credit unions millions of dollars in litigation.

Bankers' lawsuits against credit unions take away a consumer's right to choose a credit union for financial services, he said. The money credit unions spend defending themselves could be used to offer better rates on deposits and loans, he added.

And while banks accept bailout money, credit unions have never received any type of taxpayer support, Yerkes said.

Freedom CU has more than $350 million in assets.

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