Deseret News | Reader comments: Bank compromise reached

Reader comments
Bank compromise reached

Anonymous | 4:50 a.m. Feb. 22, 2008

When banks want my business badly enough to earn it rather than legislate it, they'll start treating me the way my credit union does - like a valued customer instead of an open wallet for them to pilfer.

theft-by-bank-survivor | 5:31 a.m. Feb. 22, 2008

If the banks want my business badly enough to earn it rather than legislate it, they'll treat me like a valued customer, rather than like my money belongs to them first.

Paul | 6:21 a.m. Feb. 22, 2008

Why are there any regulations on credit unions that are not on banks? If the banks can't compete, then maybe they shouldn't be in business.

Comments continue below

djt | 6:31 a.m. Feb. 22, 2008

If it walks like a duck, quacks like a duck and looks like a duck, I'll call it a duck.
The large "credit unions" that have only lip service and a legal connection to the original purposes of credit unions should be stripped of their special status and be treated as banks. No, I don't hate credit unions; I bought my first car with a credit union loan. Those who game the system to avoid responsibility (taxes)or shift risk are serving themselves if they make money controlling the institutions.

I worked for a bank | 7:36 a.m. Feb. 22, 2008

djt's line "If it walks like a duck, quacks like a duck and looks like a duck, I'll call it a duck." is straight out of the bankers' rhetoric.

His other quote relates more to bankers, who consistently turn to Congress for tax relief (avoidance). Bank senior leadership and board of directors make tons of money, much more than those leading credit unions. Read djt's comment: "Those who game the system to avoid responsibility (taxes)or shift risk are serving themselves if they make money controlling the institutions." It sounds like he is talking about banks.

Banks | 8:53 a.m. Feb. 22, 2008

Zion's nickel and dimed me to death (without withdrawals, my $1000 in savings went to zero due to fees!), First Security kept depositing my paychecks into someone else's account, causing my checks to bounce all over the valley (I had to constantly carry a note from them claiming the error to be theirs, but I got the grief). US Bank started fine, but kept adding fees. I've been with my credit union for 16 years now, and have been nothing but happy.
Banks complain that they lose customers due to looser controls on credit unions causing unfair competition. Well, they lost me due to poor customer service and outrageous fees.

I belong to a credit union | 9:19 a.m. Feb. 22, 2008

I'm puzzled by one thing - why don't more credit union members ask where their benefits are? I don't remember receiving a huge dividend check last year from my credit union, do you? The tax exempt status of the credit unions was designed to assist people like me who don't have much money in getting a house a car and in the end giving me, the customer back the profits associated with lending. As a member of a "large" credit union I can tell you they would not give me a car loan, nor a home loan and again I did not receive my portion of the profits of the year. Those profits were spent building huge new branches, training facilities and a new HQ.

Before I even move to the banks issues with these credit unions, I'd like to deal with my own. Why should we let them make $250,000 loans to non-member businesses when they won't even help me a true member buy a $25K car?

vc | 9:22 a.m. Feb. 22, 2008

Credit Unions original charters did not include many bank features such as checking, ATM, or credit cards. Since all of those features are available the Credit Unions should pay tax just like the banks. The idea that they are non-profit is ridiculous! (Take a look at any of their year-end profit reports).

Imagine what rate the bank could give if they were relieved of the obligation to pay tax? (Probably comparable to a Credit Union rate).

Credit Unions finance cars just as banks, GMAC, Ford Credit, Toyota Credit, etc. The only ones not paying tax on the PROFIT is the Credit Union.

Please explain how they are not for profit organizations since they make a "spread" on every transaction?

Jim | 9:59 a.m. Feb. 22, 2008

Ducks? What does AFLAC have to do with this?

The bankers need Yogi Berra to tell their story, "because cash is as good as money".

Credit unions represent a small part of the total financial services picture, yet get so much attention from the banks.

Bankers need to stop quacking and get cracking. Your record profits feed my retirement fund.

Barry | 10:11 a.m. Feb. 22, 2008

How can the presidents of the Banks Justify the multimillion dollars salaries they are making if they fail to B & M about something. I agree their customer service stinks!!!!

Sad with Bank, Happy with CU | 10:44 a.m. Feb. 22, 2008

When I was a student at Utah State University years ago. My financial institution was a bank. My balance was not very high as most students aren't. One day I was informed I could use a teller twice a month for free and if I used it anymore than that I would have to pay a dollar each time. The bank told me to start using the automatic teller.

Needless to say, when I moved back home to the wasatch front, I didn't stay with the bank. I started using a credit union and have been very happy with their service and lack of numerious fees.

CU Banks | 10:55 a.m. Feb. 22, 2008

Why is it that banks expect to steal my money through fees, taking the largest checks out first - so that if there is an overdraft or error, they get more fees, they keep MY money from me for 5 days after I deposit a check (while they are investing and making money off of MY money.

Oh that's right - they don't think of it as MY money - it's theirs until THEY decide when I can "use" it, for which they will charge fee after fee after fee.

And they wonder why credit unions are so popular.

Anonymous | 12:00 p.m. Feb. 22, 2008

VC, the tax exempt status is not based on products offered, it's based on a Credit Union being a non-profit institution. There are no owners and shareholders getting rich off of your loans. The government does mandate that ALL financial institutions keep a certain percentage of their deposits liquid, so many people see this and think it's profit. It isn't. It's federally mandated reserves.
I belong- I don't know of an institution that won't loan to someone with decent credit. You just announced to all of Utah that your credit is not very good. Also, the profit is disbersed based on savings with the credit union. If you don't keep money with them, you won't recieve the return of any profits earned. Credit Unions also do their best to prevent making profit, so they offer higher savings rates and lower loan rates (which your credit doesn't allow you to qualify for, but that's not their fault). Nothing in the tax exempt status says a credit union can't build more locations. They're building those buildings to serve you better.

Bank vs. CU | 12:09 p.m. Feb. 22, 2008

Banks usually pay about 35% of their net income in taxes (corporate tax rate). Credit Unions pay very close to 0% in taxes. That is a major factor in the competitiveness of the two. It's why my father (a bank owner) does all his personal banking, personal loans, etc. at a credit union. If you've ever looked at the financial statements of banks and credit unions, they are all very similar except for their taxable income. AND the directors, managers, and officers get paid HUGE dividends, bonuses, and salaries at banks and CU's. When all is said and done, the two different entities are really not all that different.

George | 12:15 p.m. Feb. 22, 2008

Well I have been associated with credit unions since they started in the late 50s. I think they are the best source of money matters their are. However they have a whole lot of problems. they don't serve the members as they are supposed to. I had an account with a credit union (it is on redwood road on the west side south of 7800 (or thereabouts) and I had auto deposit. I decided to to move and needed to go with a bank and put my auto deposit with them but I wanted to keep my account with the credit union but guess what when I got my statement they stole money for not having direct deposit. Even though I was going to keep putting money into the account.Why do business with someone who stabs you when you are down. This is just one of the problems with credit unions. Even so they are still better then any bank I have been with. On the other hand I have found most of the employees are great either bank or credit union.

Anonymous | 1:26 p.m. Feb. 22, 2008

Wow Bank vs. CU- I'm a manager at a Credit Union. I'm getting HUGE bonuse, salaries, dividends, etc. Where are they? That comes as a surprise to know because you wouldn't see it by looking at my paycheck. You also Basic Fact: I could earn a lot more money every year by working at a bank. Why don't I? I Like being able to return fees to members when they need them. I like not nickle and diming my members to death. There are two banks here in Utah that I constantly have people transfering from due to outrageous fees. I even had an account at a local bank. When my account went negative $.50 for 1 day, my account was closed and put into collections. This was the managers choice because they get those huge bonuses based on profitable accounts. If you're a little guy, they don't care about you at all.

To "Anonymous" | 9:41 p.m. Feb. 22, 2008

That's exactly my point. CU's are a much better option for personal banking than anything any Utah bank could offer. Banks in Utah nickel and dime customers to death (pun intended). But they make money doing this because look at them rake it in!

When I said "the directors, managers, and officers" get paid a lot of money, I was referring to upper management at the corporate level, not the individual branch manager. Branch managers get paid the going rate for their job, but top management at the corporate level get paid very well at both banks and credit unions. How do I know this? Well, it's published information. Just look it up.

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