Credit unions and banks differ, says Tidwell

Dear Editor,

(Editor’s note: Part of the article submitted by Mr. Tidwell has been edited due to length. His letter, however, has been kept in its full form)

After reading the article in last week’s Index by Pete Abington concerning credit unions, I had to get on the internet and find out how a credit union functions, especially when compared to banks.

It was really interesting, and the included information is from the Indiana Credit Union League.

This is the basics about credit unions, which, as I understand them, are a great help to poor people for numerous reasons, which are cited in this article.

If you have access to a computer, please do your own research, but be sure to take your blood pressure medicine first. Credit unions are a very beneficial part of the financial world in our country. Lets not have them legislated out of existence.

I am not a member of a credit union, nor have I ever had dealing with one.

I have also known Pete for many years and have a great respect for his business knowledge. However, I have never known him well enough to call him a friend.

Credit Unions: Have members, not customers. Each person who deposits money becomes a member because his deposit is considered his share of the ownership, which means unions are member-owned.

Banks: Serve anyone in the general public. Customers have no voice in how the bank is operated. They are owned by small groups of investors who expect a certain return on their investments.

Credit Unions: Democratically controlled and run by a volunteer board of directors elected by and from the membership. Each member has one vote.

Banks: Only investors have voting privileges. Customers don’t have voting rights, cannot be elected to the board, and have no authority in the overall governance of their bank.

Credit Unions: Not-for-profit, which means they do not or should not turn profit. Surplus earnings are returned to members in the form of higher dividends, lower loan rates and free or low-cost services.
Banks: Only investors get a share of the profits.

Credit Unions: Part of a worldwide support network that includes credit unions, state credit union leagues, a national trade association and worldwide credit union organization. They share ideas, information and resources.

Banks: Belong to state and national organizations. However, they are usually reluctant to share ideas, information and resources with each other.

Sincerely,
Needham Tidwell
Many, La.