GET THE FACTS ON CREDIT UNION CONVERSION
If your credit union has proposed becoming a bank, your ownership and good interest rates may be at risk. Credit unions are owned by their customers, called member-owners. Converting to a bank is rarely in the best interest of member-owners like you.
Fortunately, the decision is up to you. Credit unions are run democratically, on a one-member-one-vote basis. The member-owners decide on these proposals in an election. This website provides information for you to consider before you vote.
In January 2007, Lafayette Federal Credit Union withdrew its proposal to convert to a bank, in part due to opposition from members like Amber Brooks, Scott Stiens, and Ajit Joshi. "We wanted to keep our credit union," Joshi said. "The National Center for Member Trust helped members understand the pros and cons of Lafayette's conversion proposal. The Center was a crucial resource to us for information and technical assistance. Thanks!"
CREDIT UNION ASSET RAIDING
Credit union-to-bank conversions may allow management and investors to buy the credit union without paying you, the owner, and then sell it for personal gain. Like other not-for-profits, credit unions exist only to benefit their communities, not to enrich a few individuals.
"This whole idea of converting to a mutual bank, or eventually a stock company, is a method of raiding the assets of generational building of equity. If I had my way . . . I just wouldn’t allow this, what I call, unconscionable raiding to occur."
-Rep. Paul Kanjorski, 5/11/06 Hearing of the US House of Representatives Financial Services Committee