Credit Union Warning

New reporting indicates that some credit unions are not behaving in the way that represents their members. Clark explains what you need to know about the superior choice for banking: credit unions.
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[billsmith]

If a Credit Union charges higher fees on insufficient funds but otherwise gives the vast majority of their members in good standing superior rates, as compared with other banks, . Most people are fine with that. One of the ways they are able to offer better service/rates is by not having to deal with that on a regular basis which keeps costs down. Each credit union is different but if you are considering a bank/credit union based on overdraft fee charges you have much bigger issues that need to be addressed.

[mikegraves]

Every bank I dealt with actually tried to screw me over. I switched to a credit union years ago. The credit union actually protects my account and appreciates my business. I despise banks.

[MrStanwillis]

I have been with CU since 1972, live within your means.😊😊😊

[suen]

I will still take my credit union over most banks any day.

[ysykes]

I’ve been with my credit union at my company for over 35 years. Best decision I ever made other than marrying my fabulous spouse. ☺ Great video Clark! Thank you.

[tclodfelter]

High fees for bounced checks!? Then ... DON'T BOUNCE CHECKS!!!

[radicalrenegade]

You can usually find ratings for some of them online, even rated against other credit unions in your area.

[bshef]

- Late last started diverting bulk of savings away from CU ....and over to our brokerage accounts

[jamesbecker]

I have belonged to a local credit union for about 44 years. Overall they are great, but recently I deposited a check from my mother and it did not clear because her bank that she wrote the check on was bought out and had different routing and acct numbers. My credit union charged me $35 for accepting a bad check. That seemed extremely high and I called and did end up not have to pay the $35 but in general they do charge that fee. I almost left them over this.

[briandeschene]

I would argue that charging sufficiently punitive fees to Credit Union members that are fiscally irresponsible *is* in the best interest of its fiscally prudent members. It prevents misdeeds of a few putting at risk the sustainability and health of the institution which serves the vast majority.

In the case of banks doing so, it never serves everyone else only its stock holders (including executives who are also remunerated via stocks).

[noreenn]

Thank you Clark Howard and staff for all you do!

[dlbriley]

I got my last two auto loan from a credit union. No problems

[waltfriedrich]

A big plus is that Credit unions can not sell themselves or merge with another unles the merger is fed approved. They are also restricted as to where they can do business unlike a bank. Most credit unions are federal but more and more are switching to state charter which requires a member vote.

[sl]

I just got a pretty good auto loan from a schools credit union. In fact, I went there, then went to the dealership, they signed me up for a loan, and the schools credit union took it over and lowered my rate to what they said

[jcook]

My CU had been chartered by the state. A few years ago, it rechartered as a "federal" CU. Apparently, the federal rules are more advantageous to members. I haven't had a "bank" account for over 50 years. Long-time CU member here. Thanks.

[jimlynch]

Credit unions aren't always the best place to get auto loans. I purchased a GMC suv in 2014 and went into the dealership with a credit union rate of 1.9%. I told the finance officer I was going to use the CU and he asked what the rate was. I told him and he made a phone call and offered me a 1.59% rate. No fees, addons or anything, just a straight simple interest rate better than the CU.

[esteban]

NFCU here for 36 years. No complaints.

[chopperskier]

"New law in California...", figures! CALIFORNIA; fruits and nuts! C'mon San Andreas, I am routing for you!

[chevman]

With my very large savings ... and interest account ... my credit union surprisingly ...some how always charges me insufficient funds ...im gonna move ...

[chadd]

An overdraft isn't a service perk. It's there to save you humiliation. If you need credit, open a credit line. I totally get the fees. If you overdraft 100, it should cost you 30 on the spot. That's what a credit institution sets their high end fee at.