Stumbling Toward Taxation...The New Predator?

  

😎 Adding Fuel To The Fire?: "Credit Unions Are Making Money Off People Living Paycheck to Paycheck"

"There’s a new predator making money off overdraft fees: Credit unions. [link] 

 

✅ "Let’s be clear: Overdraft fees can be predatory. Every overdraft by definition turns money from someone who has run out of it into nearly pure profit for the bank or credit union that charged it..." 

✅ Most of America’s largest banks and many smaller ones recently reduced overdrafts by more than half, and some eliminated the product entirely. Big banks made these changes for a variety of reasons, including the result of media and congressional scrutiny, competition from financial technology apps, and bank executives wanting to do the right thing.

 

The "Bigger Picture"?... there is one even if you don't understand it. [link]

SECU Board's Repeated Failure To Understand the "Bigger Picture" May Prove Costly To SECU Members...

 

 Sheila Bair...  former head of the FDIC.

[2/3/2025] [link]:

✅  "Tax-free credit unions are thriving at public expense"

"Many have used nonprofit status to expand beyond their mandate of serving low- and moderate income communities. Many have been abusing their nonprofit and tax-exempt status to expand beyond their mandate of serving low- and moderate-income communities with common bonds. I meet no such criteria, yet I will soon become the customer of a Massachusetts credit union that is using some of its untaxed income to buy my Maryland community bank."

"Credit unions have evolved dramatically since they were formed in the United States in the early 20th century. They have been exempted from federal taxes since 1934, when Congress chartered them as nonprofit institutions to serve households of modest means who fell within a specific “field of membership."

"Credit unions once played an important and proud role in serving strongly associated, well-defined under-served communities. Many still do, and for them, tax benefits could be preserved. But too many have been egregiously abusing their tax benefits..."

... many costly misjudgments at SECU since 2021. More to come...?