The following is a letter to the editor which was published in The Times, located in Munster, Indiana , on Friday, November 5, 2004.

Bank's complaints about credit unions are just sour grapes
November 5, 2004

We appreciate the Oct. 10 story "Battle for the bucks" about credit union growth and success. However, it included banking industry representatives' complaints without our perspectives on those issues.

Two issues raised by the bankers were about credit unions expanding to serve more people and the tax exemption.

More people are joining credit unions every day because they receive better service and rates than at banks. The structural difference between credit unions and banks is the basis for credit unions' tax exemption.

Unlike banks, credit unions are member-owned, not-for-profit cooperatives with volunteer board members elected from the membership and where there is no stock capital or separate stockholders owning the organization.

Credit unions return excess earnings not needed for reserves and operations to their members through better rates and lower fees. Indiana's 2.1 million credit union members save $160 million annually compared to the same financial services from banks.

If things are so unfair for these bankers, why don't they switch to a credit union charter? They don't because they would have to lose powers, turn over control to their customers, give up stock capital, stop paying board members and lose executive compensation perks.

John McKenzie, President, Indiana Credit Union League, Indianapolis

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