Most members of state-chartered credit unions are low- and middle-income workers, according to a study recently released by the National Association of State Credit Union Supervisors.
The study, similar to one produced in 2006 by the National Credit Union Administration for federally chartered institutions, was done to answer concerns in Congress about credit unions' alleged abandonment of people of modest means. The study was sent to key congressional panels, including the tax-writing House Ways and Means Committee.
The study, released in mid-December, reviewed more than 28 million account records for 14 million members at 502 state-chartered credit unions.
It found that 85% of state credit union members earned less than $100,000 a year, the same proportion as in the overall U.S. population. The study also found that 89% of state charters give members access to low-cost services, such as free checking or debit cards, and that 66% impose no minimum balance requirement for a checking account.
By comparison, the NCUA study from November 2006 found that 96% of federal credit union members earned less than $100,000. It also found that 60% of federal credit union members earned less than $60,000 a year.
The NCUA study was done in response to congressional inquiries about whether credit unions continue to provide services to the underserved, something many in Congress believe is crucial to credit unions' keeping their federal tax exemption.
The report has been presented to members of the Ways and Means Committee and will be offered for review by members of the House Financial Services Committee, said Martha Fortney, the executive director of the National Association of State Credit Union Supervisors.
