Tuesday, the New York Times said that the FDIC has now named 702 ‘problem banks’ at the end of 2009. There were only 252 banks on the list at the beginning of last year. 140 banks failed in 2009, the highest number of bank failures in 17 years. Credit unions may be suffering, but because they are non-profit organizations, they aren’t seeing anywhere near the same kind of losses that banks are experiencing. It’s not hard to see why many Americans are switching from big banks to smaller credit unions.
But with the new credit card holder’s bill of rights, which took effect Monday, many more Americans could be driven to make the switch.
In the clip below from the CBS evening news, credit cards, the “2 inch piece of plastic” that has been driving our economy, and our citizens into debt, could draw more people to join credit unions.
Many credit unions don’t issue credit cards, and the ones that do have lower rates, and have eliminated many fees that banks are charging.
The benefits of being a member of a credit union are stacking up, and even more obvious in these trying economic times. Are you convinced yet?
Watch CBS News Videos Online