WASHINGTON—A new survey from the American Bankers Association shows U.S. consumers believe federal credit unions should be held accountable for meeting the same legal standards as banks.
The report, conducted by Morning Consult on behalf of the ABA, reveals that three times as many consumers believe credit unions should pay federal taxes like banks, compared to those who feel they should not (51% vs. 17%, respectively), the ABA Banking Journal reported.
Seventeen percent of Americans are aware that credit unions do not pay federal taxes, while 84% are unaware of credit unions’ tax-exempt status, the report states.
Consumers also believe by a five-to-one margin that credit unions should have the same disclosure and taxation requirements as other tax-exempt organizations, ABA Banking Journal noted in its analysis.
“Today’s credit union industry has leveraged its preferential tax and regulatory treatment to grow rapidly and increasingly acquire tax-paying banks — something that clearly does not reflect Congress’ original intent,” ABA President and CEO Rob Nichols said. “These new survey results show that Americans overwhelmingly agree taxpayers and credit union members deserve increased transparency and accountability.”
Other survey findings:
- Fifty-four percent of respondents believe that credit unions should be subject to annual community reinvestment reporting requirements as banks are today, while just 14% oppose that requirement
- Most respondents (76%) care if the business that handles their finances is held to the same legal standard for consumer protection as a bank and the vast majority (86%) agree that any business providing bank-like services to consumers should be held to the same standards for consumer protection as a bank
- By a six-to-one margin, consumers said credit union acquisitions of banks should receive the same level of regulatory scrutiny as bank mergers (61% said they should vs 11% who said they shouldn’t)