Is Your Credit Union Converting to a Bank? Get the Facts.
Your ownership and good rates may be in danger.
If you are a customer of a credit union, you are already a member and owner of that credit union. Conversion to a bank rarely benefits the member-owners—and often harms them. The National Center for Member Trust is dedicated to helping credit union member-owners educate themselves so they can make an informed decision about conversion.
The decision to convert or remain a credit union is up to you!
Credit unions are run democratically, on a one-member-one-vote basis. The member-owners will decide on the conversion proposal in an election. How will 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!"
What is Asset Raiding?
When investors buy up a community-owned institution and sell it off for personal gain, this is
sometimes called asset raiding. Like other non-profits, credit unions exist only to benefit their
communities—not to enrich a few individuals. Many see the conversion of non-profit credit unions
to for-profit banks as a vehicle for asset raiding.
"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."
-US Rep. Paul Kanjorski, 5/11/06 Hearing of the US House of Representatives Financial Services
Committee
