Ask Prof Wolff: Credit Unions vs. Banks
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- čas přidán 9. 09. 2024
- A Patron of Economic Update asks: "Are credit unions preferable to standard banks for those of us who are eager to help move America to a socialist system? Or am I just fooling myself?"
This is Professor Richard Wolff's video response.
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"Gains are privatized. Losses are socialized."
I worked for a credit union for 5 years. The one I worked for was just as predatory as a private bank. We increased our overdraft fee from $5 to $25 because "that's what our competitors charge".
I'm sure some are better than others, but a lot are just banks with a tax exemption.
Yeppers, they do the whole banking thing... including ripping customers off with fees and crappy rates
membership requirements are a good indicator of how much power members have over CUI management and policy. How many people attend AGM is another.
I believe they have less fees than most banks. It seems banks have more fees for everything .
That's the problem with lots of credit unions... you get "bank" presidents to wanna become big millionaires... former Wamu or Washington Mutual was a credit union, that later became a regional bank.
So credit unions are better... they can become corrupt as some suddenly have ambitions to becoming a regional and possibly a national bank.
@@TennesseeJed this is why you remain vigilant and comparison shop, even after you choose a credit union.
3:53 THANK YOU, Professor Wolff, for making this point. I worked for a bank for 4+ years, and for a credit union for 4+ years. Credit unions are great from a customer standpoint for all the reasons you mentioned, but as an employee there was virtually no difference. One of the managers I worked for at the credit union was an absolute tyrant who made my life a living hell. The stress from having to deal with her on a daily basis took a huge toll on my body and on my marriage, yet there was nothing I could do about it since she was the boss and I had no say. Even in so-called "democratically-organized" institutions, the idea of worker control is still a totally foreign concept to most Americans.
Never tolerate a toxic boss.
Toxic Bosses are the worst 👎
I'm sorry to hear that story, Christian. There should be laws codified as "economic-terrorism laws."
These laws would specifically pertain to people in positions of leadership within society.
The wealthy-class employers, the professional-managerial class, elected officials, public servants, appointed jurists, law enforcement officers, military members, and other persons in positions of leadership within society would be subject to these economic-terrorism laws.
These laws would apply a higher standard to persons who CHOOSE to pursue leadership positions in society -- particularly regarding already-existing crimes.
Leaders who force workers to commit, or leaders who commit against workers, any of the actions that the majority of the population has already deemed unethical, immoral, or unlawful, would face more severe punishments than citizens and workers who are not leaders.
For example, harassment: Any leader who commits harassment against a citizen or worker would receive more severe punishment for committing that crime while acting in their leadership position.
Furthermore, any worker who admittedly or evidently harassed another worker, with knowledge of the harassment going unaddressed by leadership, would be a punishable offense by the leader.
Another example is individual ethics: Forcing workers to do things that go against the worker's ethics and morals would be a punishable offense for leaders.
Of course, personal morals and ethics can reach "gray-areas" for some people. But, I say, if a task requested by a leader isn't immoral or unethical, then that leader should have no problem finding another worker to perform the task willingly.
The current system of minority-rule by society's leaders is absurdly detrimental -- no, antithetical -- to a majority-rule society. It is indisputably undemocratic.
The current system allows leaders to force workers by implying or saying, "Do what we say, when we say, how we say, without hesitation, or you don't get to eat food, drink water, live in a shelter, clothe your body."
At one point, I found this system to be terrifying. Even before I become homeless, I found the system alarming. But I couldn't explain why. As I learned to cope with homelessness, it became less terrifying.
Then I got lucky. I was able to become rehoused, and I began to educate myself about the even-greater terrors inflicted on other people who hadn't been able to cope as I had.
My experiences with being terrified and homeless, coupled with my ability to cope, then supplemented by my knowledge of other humans' inability to cope with the terror, really caused an evolution in how I felt about the mob-rule of the wealthy-class minority.
I realized that the wealthy-class perpetrators of this system were willing to let me die. I have since come to understand that they rely on people like me dying as a form of population control.
I have even further realized that the wealthy-class is willing to manufacture economic desperation from which working-class people are coerced into signing up for militaries to inflict pain and suffering on other working-class people.
I digress...
To me, leaders forcing workers to sacrifice their inner-peace, personal-spirituality, or economic-security under the threat of removing the worker from their source of livelihood is nothing less than committal of economic-terrorism by leaders.
The wealthy-class addicts are nothing less than economic-terrorists.
Because of my willingness to call out the wealthy-class and society's leaders -- I am under no disillusions -- I fully expect to become homeless again, in chains, or in a box.
I hope you never have to suffer under their mob-rule again, Christian.
Thanks I perfer Credit Unions they usually have pretty decent interest rates, & your money is protected, plus the Tellers will take more time with you than Privatized Banks do.
Heads of Credit Unions afraid of what the big banks will do to them??? This is so revealing about our “democracy” and respect for “competition”.
It's also possible that the people who run the credit unions have connections with private banks and aspirations to one day "move up" to better paying positions in private banks. Kind of how politicians treat large corporations. A job in a large corporation sometimes is a politicians' next job.
That's the scary part... when I hear about one ass hat whose running for Bank President... and they promote such drivel, I start a campaign to vote them out of the credit union.
Scary though so many think that's the ticket to get elected. It's not.
@@jmitterii2 It's probably been going on for a good while, but Fox News put it on steroids. Now companies that lobby government probably do it without a second thought.
My Oregon Credit Union pays 1.5% APR on 1st $15K deposited in my checking account. Extra $18.75 a month in my pocket. Thank you for the editorial! Very helpful.
Defi pays 4 to 40% APY, and even higher rates on crypto holdings... more people need to take advantage of this.
HHHHMMMM so you are losing a bit less than elsewhere due to inflation plus
the tax on income at whatever rate applies.
I switched to a credit union when Trump was elected. I was certainly late to the party, but I assumed a massive crash would happen under Trump and ...well. March 2020 proved that.
Credit unions are great. Been doing business with one for almost 15 years, but it wasn’t to “express my feelings” against the corrupt traditional banks. 😂 lol.
I simply get better service and rates on loans.
Even if the credit union leadership is worried about commercial banks attacking them, I think (union) workers etc should urge their colleagues to move to credit unions. Above being protest, people should vote with their feet away from supporting the very institutions working against us.
Please us Kshama Sawant as an example of somebody bucking the system, not AOC. Sawant has been the most true to socialist principles of any public figure in our nation.
As a consumer, I’ve always preferred Credit Unions over banks. The best Credit Union that I’ve personally found is Alliant Credit Union. Their interest rates were some of the best in the industry before Covid (and they’re still really good compared to most banks and other Credit Unions).
Alliant requires you to be affiliated with select number of other institutions (hired by a particular company, for example) to get membership, though. So, it's somewhat exclusive. But once you're in, you're in for life, so there's that.
If your current place of employment doesn't allow you to get an account at Alliant, talk to the management and see if they wouldn't mind hooking that up.
As you've said, Alliant gives some of the best rates around. Their checking accounts are interest-earning by default and their Savings accounts are high-interest. Also good rates on mortgages, car loans, etc.
Good analysis. Keep the truth alive. 👍 👍
Tracing the thought process back further...leads to G.R.E.E.D. of all man.
Credit unions are way more flexible today than they were in the 1970s when access was more limited. The Internet has leveled the playing field on member convenience.
Dr.Wolff , would love to hear your opinion on the current situation in Ukraine. The hypocrisy I see is monumental, your insights on the economic gains of US arms industrialists vs the fallout of a conflict with Russia. Thanks!!!
Credit Unions are a way to #ActLocal
I joined a credit union 30 years ago, before online banking & apps were humming along. What hasn't changed in that time is the approachability of its employees. If I call, then, as now, there's a friendly, helpful live human at the other end.
Been a CU member for years. I don't pay a nickel in fees, and my money's being used to benefit not just me with no fees and higher interest than what the banks have on offer, it's also helping my other CU members achieve their financial needs without it leaving our community.
I closed all bank accounts and joined a credit union 30 years ago. I have three kids; they all use a credit unions, too. They accept the fact that Banks are just organized crime that's legal.
In 2018 in my country of the Netherlands the banks were all taken into government property and they were kept on a tight leash. For example, they couldn't invest in risky or destructive industries like; arms, pay day loans, gambling, companies caught trafficking humans and they were told to not pay above the salary of the salary of our Prime Minister Mark Rutte which was instated before him under Jan Peter Balkenende, the so called Balkenende-norm (Balkenende-rule) which comes down to 180k a year. They were forced to invest more in green energy, housing corporations (who also took a hard hit), they were forced to keep loans affordable for the working class by for example forgoing pay in many cases or just scrapping loans to be reffered towards government debt support systems, who are less strict and are geared towards helping people solving their debt issues and help people structure their lives in a way that lowers the chance of them worsening their life circumstances. Which is more logical than what banks do, squeezing people for every bit of cash they have.
I've been with a credit union since 1984 and I love them. I worked in a bank and in a credit union . I prefer a credit union because they care about the members and the members financial needs. I never was part of the big 4 banks and never will be part of them due to the horror stories . When I worked at a credit union I was a senior loan office /manager and paid very well. We were always about our members.. my advice is to join a credit union stay away from the big banks they are making a mess of our financial world.❤
I switched exactly because of the banking meltdown too. However, my credit union where I got my mortgage just sold that mortgage just like the banks.
What State? This is a failure of the state regulator.
As a member of my local CU I am disappointed to see that their fees are similar to commercial banks and there is no return to us members. I had to buy shares to open the account for my business, after twelve years I learned that these shares do not increase in value. Also they do not pay out decent interest from their profits.
I am pretty confused of the benefits other than being a regional bank vs. international.
shop around, if there is one CUI, then there is probably another near. What matters is how they structure membership. A union CUI may do better, while a geographic CUI is often just an employment scheme.
They both suck.
Seems like at least around this neck of the woods *a decent amount of the credit unions have merged* and consolidated and somewhat act like banks to take a note on your top down comment.
That's pretty much the same card as was played in the S&L scandal. Bill Black, who helped prosecute the S&L scandal, has noted it's all coming back and this time the government is fully engaged in promoting the control fraud.
@@rcmrcm3370 Is Bill Black on a record saying that and do you know where, if so? Have had a discussion with people and I know Bill has been in the book Legal Extortion : The War Against Lincoln Savings and Charlie Keating by Jack D. Atchison.
@@mitchell.9632 My third comment here. I didn't even put in the link, just some of the words that describe the site the interview appears on and Google deleted it. They don't want you to know.
I love my credit unions because is member run.
The problem with the current credit union model is that while the board may be elected by members, the elections are generally not accessible to working class people, who are also not represented in the for-profit banking sector. Decisions such as what interest and fees to charge, how many workers should be hired/branch locations and how much dividends should be paid are not decided through a democratic process. Members also don’t vote on executive pay, expensive buildings and private jets.
Due to the built in contradictions of the balance sheet, the CU model may be better but executive fortunes and company balance sheet assets still represent a drain on working people similar to banks. At the end of the day, the best the US credit union model can offer is to rip you off less.
Despite all of this, I support joining a credit union anyway.
It’s all compromised anyways.
The progressive movement sold out to Wall Street and the Corporate lobby after the Willie Clinton era and never looked back.
A very confident view on positive experience was my experience,so far...
The whole system, corporations, banks, it all need's to be changed and made less corrupt, greedy and anti human. They say that all agencies and institutions are to help the masses but that's a lie, they all serve the corrupt and privilaged.
I have worked for both. I bank with both. It depends on the people. Credit unions are more apt to be member friendly. Banks, I think have more bureaucracy. That is just my limited experience. Overall, I enjoyed working at both because of the people.
Wow. I joined a credit union just before i seen this video. I guess i am a lucky boy.
My credit union just raised the bounced check fee from 3.00 to 39.00.....
My guess is that's in part due to Wall Street. The check clearing system is run by the Fed. The Fed charges fees to members. As a member you can ask them to explain, and you have the right to go to the AGM and vote in new management, so if you look like you might be willing to do something, I expect they will do their best to pacify you.
I asked about it at the time. They said that they are taxed and regulated once they exceed a certain size. They wanted to stay small. That's why they didn't want to hold the local government's money.
I moved to a Credit Union last year. They are much friendlier and helpful to me and their credit card interest rate is much lower.
I'm wondering if anyone here has heard of the National Cooperative Bank and if they've ever dealt with them.
Wiki them it's listed, but be aware it's a Congress critter, and thus subject to high level interference ala post office. If they are really doing good, then they will be "Post Officed" as both corporate Dems like Pelosi/Clinton and RNC are well fed by Wall Street.
Ask a postal worker like me. I’ve been in a credit union for 35 years.
I have had accounts at both banks and credit unions and have found most credit unions (not all) provide superior customer service and rates. However, federal credit unions are overseen by the National Credit Union Administration, a federal agency. Members of the board of the NCUA are appointed by a the US President, a politician. In my experience, the administrative activities of the board are conducted very similarly to those of other federal agencies. I have seen them cover up wrongdoing and aid retaliation against a whistleblower. With a political entity regulating their operations, credit unions are reasonable to worry that big banks would use their influence to hurt them.
Thank you 🌎 ✊️ 🌹 🗽
My Credit Union has 70,000 employees and competes very well with private institutions. My Credit Union sells securities, insurance and every other financial vehicle. Our Quality of life here in small town Quebec is higher than that of Copenhagen. Our attendance at annual meetings gives us a say greater than shareholders at annual meetings and all the power rests with us.
They still pay shitty interest, just like their banking cohorts.
depends, but with your name, I can guess about local conditions.
@@rcmrcm3370 yes. Knoxville. Seems my CU copies banks in every way fees and rates are exactly like banks. Yes, an occasional profit sharing, but not significant enough to change lifestyle.
Interest rates are so low is the reason. They are set to go up in March.
NCUA: "Members pool their funds to make loans to one another. ". Does not seem that Credit Unions are similar to commercial banks. My guess is that Credit Unions have an account at a Commercial Bank and do transactions through this? In US speak I think Commercial Banks issue demand deposits (via loans) which is in effect money.
Credit unions are better then banks but in the current transition away from cash we need postal bank or some other way to do basic cashless money handling without going through a third party. Of course if you trust a credit union (or even a bank) more then them you should be able to use them instead but you shouldn't be forced to.
There’s a reason that John Hume considered his greatest achievement to be the Credit Union of Ireland, even after all the incredible advancements he made with peacemaking in Ireland!!! :D
Some credit unions aren't any better than big banks. Besides paying no interest, the one I was at started charging a $5.00 per month "inactivity" fee. They did not inform me about this in advance but just started doing it. I discovered it two months later. Probably should have checked it sooner but had "parked" the money in anticipation of a down payment. So they siphoned off $10.00. Upon discovery of same, I closed the account and moved the money so that now at least I get a small pittance of interest. Also, about 5 years ago they were charging a $35.00 bounced check fee or about the same as the big banks were. No bargains at this credit union. Glad I'm gone.
in iowa there was legislation planned about three/four years ago to force credit unions to pay a tax that had only ever applied to privately-owned banks. the banks - so help me phuque - stated publicly this lobbying on the banks' part was in the interests of the people of iowa and fairness...
Very informative video! Perhaps in the future you can tell us how we can get an account with a credit union. I have an account with a savings bank, a very big and famous one, and I doon't like the way they treat me as a customer but I doon't know how to switch my account since I have a direct deposit account for my social security check with them.
Just do a local search on line, nearly all credit unions have a web page. check their membership requirements first, you have to fit their membership requirements.
My credit union has no outlandish prerequisites. They only require keeping $5 in the account. But some do have other requirements.
Just find out which local credit unions are in your area. If you can't find them on your own, reach out to your local government representative.
Once you know the locations of the Credit Union(s) in your area, you should be able to walk in like any regular bank. Or you could call the Credit Union and ask them if they'll accept you before going in and doing the initial paperwork.
It should be painless and simple. The Credit Union should even be willing to help you set up the direct deposit for your social security check. If they don't make it simple, then don't go through that credit union. It's your money. It should be simple.
Good luck, Frank.
Anything is possible... Begin with a question of why?
Bail outs after 2008 showed Americans are ok with socialism for the rich but get alarmed and scared to hear someone can be in favor of socialism for those in real need. I will never understand that.
It's all because of propaganda, Raquel. Working-class Americans have been made ignorant by the lies and propaganda produced by wealthy-class right-wingers.
Look into the topic called "The Red Scare." Learn about what wealthy-class right-wingers did to working-class left-wingers in America in the past.
That should be a good start to explain why socialism and communism became so feared.
Good luck to you, Raquel.
The laws restricting who may join should be dropped
The law isn't just a negative. There are some positive parts, as it's the membership that supervises the management, the function of stock holders in commercial banks. If the membership is too diverse, then it is easy for the management to either be negligent or even to engage in Control Fraud.
If that happens then there is literally no difference between a credit union and your typical corrupt Wall Street bank.
@@willia3r S&L crisis, Mark I.
@@rcmrcm3370 so specifically if it’s all plumbers or firemen they will be better managers? there are some credit unions with open membership for a region.
@@willia3r other than customer ownership and corporate laws governing it? it’s not a publicly traded company legally obligated to maximize profit.
Dr. Wolff, could states, or even local communities own and operate their own banks?
Yeah anyone can
local NGO communities can, but local governments are barred by some state laws from owning a bank or credit union. For an example of both sides, California recently reversed a set of laws banning government ownership. What NGO's can form credit unions are also regulated by state laws.
Credit unions are local and that really does matter. The big banks continue to close branches. You cannot do everything online.
Thank you for this info
"help." Lol. The way I see it now, even the eviction moratorium only served to fuck people over in the long run. Not that people didn't need relief from their rent; obviously they did, what they provided was pathetically insufficient, since an unprecedented number of people have now found themselves becoming homeless. (Fun fact: in my city, Charlotte NC, homelessness went up by 55% between June 2020 and June 2021)
Essentially what the government did, is basically said, go ahead and get a few months behind in your rent. Then you'll really be screwed... It's like some sort of evil plot to make sure that people will definitely be out on their asses. And not just potentially be.
It's like some kind of dystopian fucking nightmare, except we've grown so goddamn complacent, and apparently all just accept it as reality.
I vote that they bring back postal banking
Congress would crush it
There are places where this is currently happening, but I don't know the exact locations. There was a pilot-program passed in a recent piece of legislation. If you reach out to the office of Congressperson or Senator, they should be able to find out for you.
There is no way in hell I'd let a bank--especially a big Wall St. one--handle the money I'm saving for retirement. I'm not letting a bunch of criminals gamble with my hard-earned money. I work for a credit union, and they will be handling any IRA's I choose to have, as well as any CD's. They already have my 401K.
I tried to join a credit union after the capitalist driven 2008 economic collapse but I didn't have good enough credit. It didn't make any sense to me I wasn't asking for a loan I just wanted to keep my money there. What's up with that? Yeah I was poor back then I didn't have any credit I never had a credit card still. But I couldn't figure why they wouldn't hold on to my money take checks from my employer?
If you have at least $20 dollars in deposit, most will take you without charge to open a savings account. Checking depends of if you have bounced checks in the past. But all have membership requirements by law, they can't be open to anyone in the public. Do some searching and you might find one who can accept you from your job, club membership, address, etc, it just depends on where you live. ND, little chance, but then ND does have a state run bank. NY, you can't help find two or three in every town.
Did you owe money to another financial institution? That would be a reason for some. Others will still allow it but they will give a special account. It is a risk to a bank to open an account because some do overdraw their accounts. There are rules the industry has to follow on them.
@@mytruthbekind5793 that might be what it is my wife has type 1 diabetes sometimes we we're only covered by cobra and yeah that doesn't leave enough money that's that's too expensive
Give banks the middle finger and join a credit union. I have two accounts and I have never regretted either one for more than 30 years.
I ❤️ my credit union. Just saying.
Maybe it’s a east coast and west coast thing. I have seen credit union expansion in the last decade. Portland Oregon for exchange. I welcome more credit union expansion.
I don't know if it's legal for a credit union, owned by a company you worked for, to instantly - I MEAN INSTANTLY - demand back, any money you borrowed from them the second they fire you. I don't know if that was just one of them acting in a strange way, or if they all have the right to do that. Thank God I had my money in a COMMUNITY BANK.
Any bank can do it, a company can not own a credit union. It must be separate and can not have corporation as member, only people.
Your products are not only educational but motivating. How long does this system just profit over mutual benefits will last? I know the answer. But are the people awaken fully? Probably not. I am student you can correct me, but I am not a student of history or geo politics or geo economics or any other education except western education.. This is where the Western world is getting it wrong.
We must encourage as many people as possible to switch over to (preferably local when possible) credit unions. We must also encourage people to "take back" corrupted credit unions by exercising their voting powers.
Maybe some tiktoks or some kind of social media campaign to explain to people why they should switch over. I really think there's a strategy there to weaken the power of global capital. Not stop it, but just create a small crack in the imperial monetary system.
Professor Wolff..
We need a.. World beyond
Money. A much higher level of existence...
Our.. Ancient.. Sages had...
If the Credit Unions did take Government money would they not also be screwing the people?
What if everybody immigrated out of the USA to countries where they can have far better lives? The oligarchs would be fried. For those who can and are so inclined, do it.
The Rich already have.
Instead of offering useful information about the differences between the two you spent 9 minutes saying the same tired platitudes you've been repeating your entire career. I genuinely do not understand how leftists gain any insight from you.
Politically 'attuned' that's not fkng fair. listen to yourself brother. whos fing side are you on?. be an educated educator not a witless traitor call it Politically privileged at least. c'mon son..