December 29, 2009 In a recent feature segment that aired on CNN, millions of consumers learned about the benefits of using a credit union. CNN's personal finance editor, Gerri Willis, told viewers, "It's time to start fresh. Continuing with our Financial Resolution series, we'll show you how you can join a local credit union." Willis' piece reinforced the benefits of using a credit union, benefits that are quite familiar in Maine since more than 600,000 Maine consumers currently belong to a credit union.
The story highlighted the differences between credit unions and other financial institutions by taking a look at how credit unions are structured. CNN focused on the fact that credit unions, unlike banks, are non-profit institutions. "For you, that translates into lower fees and better rates. That's because profits tend to go back to members in the form of lower rates and fees rather than going to stockholders," Willis explained.
For the story, CNN and Willis examined rates on a variety of products and concluded that credit unions were "a significantly better deal on the majority of services offered than other institutions." She also emphasized that most credit unions (all in Maine) are federally-insured by the National Credit Union Administration, a government agency that has the full backing of the U.S. Government. John Murphy, President of the Maine Credit Union League, said including that fact was important because consumers are still worried about their money. "Not one penny of a member's money has ever been lost at a federally-insured credit union."
CNN's findings also reinforce the findings of a significant Economic Impact Study that was conducted on Maine financial institutions by a leading economist, Chuck Lawton, in 2008. Lawton's study found that the economic benefits to of using a credit union to Maine was more than $73 million as a result of lower and fewer fees, better rates on loans and better rates on savings.
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