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Is your credit union converting into a for profit bank?
As a consumer protection organization, we try to raise the red flag when we see one. And if you are a member of Community Credit Union of Lynn or First Priority Credit Union, we need to let you know of a big red flag.
A credit union is a member-owned, democratic, non-profit financial cooperative. If you have an account or loan at a credit union, you own a share of the credit union, and can get lower cost loans and higher paying savings than banks offer. Unlike a bank, the credit union’s legal mission is to serve you.
We’ve learned that Community Credit Union of Lynn and First Priority Credit Union are attempting to convert to banks. If you are a member of either of these credit unions this could be bad news for you. In similar conversions in the past, the board of directors and executives have made windfall profits at the expense of their members, who have lost valuable ownership of the credit union without any compensation, while rates and fees got worse.
The good news is that if we can get enough members together to oppose the conversion then we can stop it from happening—members will decide on the conversion in an upcoming election. The purpose of a credit union is to benefit its members. If these conversions are not in the members’ interest, they should not happen. If you are a member of either First Priority Credit Union or Community Credit Union of Lynn and want to get involved, let us know by filling in the form below.
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