What Do Consumers Care About in 2015?

It's autumn. Leaves are changing colors and the nights are cooler. There's a crispness in the weekend air as football returns and major league baseball teams try to make it to the World Series. There's a certain excitement as kids go back to school, make new friends and Halloween approaches.

While times are good and appear to be getting better, still consumers have some strong concerns that politicians and policy makers need to address. Here are the top five concerns based on a recent survey of 1,045 members of the American Consumer Council.

1. More Jobs. This continues to be the number one concern for consumers. More than 68% of consumers says they want to see greater job creation and have the opportunity to advance in their chosen field. The percentage is even higher (77%) for those respondents under 35 years of age.

2. Wage Growth.  Over 64% of consumers feel their wages have been sluggish and not kept pace with the cost of living. Consumers want to see a substantial increase in the minimum wage (61%) and they want companies to expand family benefits, especially for new mothers and fathers, and caring for their aging parents (59%).

3.  Debt Relief.  There is a growing concern among many consumers that a college education will soon be unaffordable. More than 57% of consumers responded by saying the burden of college tuition is "breaking the family bank."  Several presidential candidates have taken up the cry for "free college tuition" and it appears that consumers will support those candidates who appeal to their pocketbook issues.

The second part of the Debt Relief issue is the concern of consumers over their home mortgages. A significant number of consumers-homeowners (38%) told us they are still "upside down" in their mortgage debt-to-market value ratio. This has been a nagging problem since the Great Recession of 2008 and exacerbated by the deceit and dishonesty of Wall Street banks and brokers. Many consumers (31%) still want some kind of financial relief and justice for those harmed by the bankers who rigged the mortgage system.

4. Improved Infrastructure.  It's clear from our survey that a growing number of consumers (44%) are disgruntled with aging roads, potholes, dilapidated bridges, an antiquated transportation system and traffic jams.  We are seeing a growing number of consumers now calling for a major investment by Congress in America's infrastructure.

This includes a national high speed rail program (53%) between America's busiest major cities and corridors such as San Diego to San Francisco, Boston to Richmond, and Miami to Atlanta. Consumers are tired of sitting in airports and experiencing flight delays and crammed seats on airplanes. They are demanding more funding from Congress for transportation and they want the United States to enter the 21st Century when it comes to roads, bridges and rail.

5. Criminal Justice Reform.  This is an issue that has bubbled-up over the past two years in our surveys. While criminal justice reform would appear to be more of a "social justice and equality" issue, there's a growing frustration and concern among consumers that police departments are overzealous in their arrest tactics, and too many Americans are going to jail for drug use offenses while Wall Street bankers go free for their crimes against society.

Now, 38% of consumers rank Criminal Justice Reform as a major concern because it is affecting  the harmony of inner cities and race relations, stalling the growth of small businesses and negatively impacting the well-being of citizens who are afraid to walk in their neighborhoods.

Specifically, 47% of consumers want sweeping reform among law enforcement agencies in terms of community policing and how they arrest citizens. Also, more consumers are now in favor of major drug law reform (41%); and approve the regulated use of addictive drugs (35%); the legalization of marijuana (58%); and, replacing jail sentences for the use of narcotics with mandated treatment programs funded by the states (61%).  Only 14% of respondents want a reduction in criminal penalties for drug dealers.

So, these are the major issues and concerns of consumers as we enter the fourth quarter of 2015.

About the author: Thomas Hinton is president of the California Consumer Council and can be reached at: tom@calconsumercouncil.org 

California Consumers Anxious for the NCUA to Approve Credit Union Access

During the past 18 months, thousands of consumers across the nation have joined the California Consumer Council and its 46 sister consumer councils because they want to take advantage of our financial education programs which we host with partnering credit unions. Consumers are also looking for personalized financial services such as low-interest home loans, college loans and chip-friendly credit cards which several credit unions offer.

But, there's a big problem.

The problem is the National Credit Union Administration (NCUA) and its Office of Consumer Protection (OCP).  OCP has been very slow to approve several credit union applications that will allow them to enlist members of our state consumer council. Some of these credit union applications have been pending for more than a year!

We know of at least eight credit unions that are awaiting a response from the OCP on the status of their pending SEG applications. Several credit union executives tell us that they were promised status reports or approval letters from the NCUA-OCP over six months ago. But, to date, they have received nothing.

At the American Consumer Council's annual business meeting in San Diego last week, more than 300 consumer-members asked ACC to encourage the NCUA-OCP to clear-up the backlog of associational SEG applications so credit union that have been awaiting a decision can move forward.  Many of those members are from California.

Swift action by OCP will also allow organizations like ACC and the California Consumer Council to refer more of its consumer-members to local credit unions through our state consumer council network.

Hopefully, the NCUA's Office of Consumer Protection will begin to take swift action and help consumers, many of whom have been waiting for over a year on the NCUA-OCP to make a decision.

Consumers Want to Help Credit Unions, but...

Despite an improving economy and growing consumer confidence, there’s still turmoil in the financial world of millions of consumers. The American Consumer Council (ACC), a non-profit consumer education organization, calculates that nearly 32% of all consumer households remain “financially under-water” as a result of the 2008 Great Recession.

According to ACC’s president, Thomas Hinton, “Millions of consumers and American households are still paying the steep price for the irresponsible actions of those major banks and Wall Street investment firms that betrayed consumers and caused financial devastation during the Great Recession. Its repercussions will be felt for another decade.”

And so, it should come as no surprise that millions of consumers have been drawn to credit unions during the past six years. CUNA announced that credit unions surpassed 100 million memberships nationally, according to data collected from credit unions in CUNA’s June 2014 “Monthly Credit Union Estimates.”

In the past 12 months (June 2013 to June 2014), credit union memberships expanded by 2.9%, compared to 2.5% in 2013 and 2.1% in 2012, according to CUNA data. Credit unions added a total of 2.85 million additional memberships over the past year - the largest reported increase in more than a quarter century. And, in percentage terms, the 2.9% increase was the fastest since 2000, according to the CUNA analysis. However, according to CUNA, there was some negative news. Some 54% of credit unions experienced a decline in their membership numbers during the second quarter of 2014.

ACC’s Hinton, said, “This surge in credit union membership growth is just the tip of the iceberg, but it could be blunted if the NCUA fails to allow associations like ACC to continue to partner with credit unions.” Hinton noted that the NCUA has proposed new associational common bond policies that will hurt consumers by limiting their ability to join credit unions through legitimate associations like ACC.

Hinton said, “It makes no sense for the NCUA to create more regulatory barriers for consumers who desperately need and want the financial services offered by credit unions. There’s no question that credit unions have been a life-saver for millions of consumers since the Great Recession as banks are limiting their consumer lending and focusing resources on commercial businesses. Almost half of our new ACC members say they want to join credit unions, but the federal regulators are making it too difficult with their punitive policies and anti-consumer attitude. It’s very frustrating for consumers and credit unions. We don't understand why the NCUA is undermining the very industry it is sworn to protect and sustain.”

Hinton also addressed the need for credit unions to appeal to a new pool of potential members. “When you consider that only 14% of the Millennial Generation (ages 14-28) belong to a credit union, there are millions of young consumers that need to know about the benefits of credit unions. But, if the NCUA makes it too difficult for Millennials to join credit unions, they’ll just go online and deposit their money in a big bank. The end result is credit unions will lose the overwhelming majority of the Millennial Generation to banks, and the financial needs of young consumers will be hurt in the long term.”

The American Consumer Council currently partners with over 47 credit unions across the nation to provide financial services and educational programs to its 148,000 members. ACC has asked the NCUA to continue to allow federally-chartered credit unions to add established national organizations like ACC as associational SEGs.

Mark Wilson is a marketing and public relations manager for the American Consumer Council. He can be reached at: info@americanconsumercouncil.org

Why are No Bankers in Jail?

It’s been two years since the Great Recession ended according to the experts. This is despite the fact that millions of consumer are still suffering the financial pain and consequences of the Great Panic of 2008 that was brought on by a handful of greedy bankers and investment firms. Oddly, no one has gone to jail for their involvement in bringing on the Great Panic of 2008.

Apparently, the Department of Justice concluded that no crimes were committed; there was only bad judgment on the part of the bankers and investment firm executives who perpetrated the fraud on the American public.

How does the federal government expect consumers to have faith in our financial system when some 50 or more banking executives and investment firm managers knowingly rigged the system for their own selfish benefit, and caused devastating financial hardship for millions of honest Americans, who lost their jobs, savings, and homes as a result of “poor judgment” by these scoundrels?

While the federal government believes a debt has been paid in the form of nearly $80 billion in settlements from the banks and investment firms who were culpable in this fiasco, consumers don’t see it that way because the average consumer will not see a penny of that $80 Billion. That money will go into the federal treasury. Once again, the guilty go free and the American consumer gets pickled.  It's unbelievable considering it was the American consumer who bore the brunt of the losses in the form of home foreclosures, lost savings, forfeited retirement funds, and lost jobs and wages. And still, no one has gone to jail for their actions.

To complicate matters, once-respected auditors and tax accountancy firms were also culpable in cooking the books and providing misleading financial reports to shareholders and the government. But, they too, have walked away from this travesty with a mild slap on the wrist.

So, if you want to know why so many Americans are disenfranchised with the “system,” you need look no further than the halls of justice. They’re empty.

What Economic Recovery?

Despite a record-setting stock market and stronger job growth, most Americans don't think the economy has improved in the past year, according to a survey released Thursday by Rutgers University researchers.  Michael L. Diamond (mdiamond@app.com) offered the following assessment based on the Rutgers research report.

The grim assessment paints the picture of a stressed-out work force that is likely to spend money only cautiously, keeping a lid on economic growth, the authors said.

What do you think: Has the economy improved this year?
"I was surprised to see people are even more negative than they were 18 months ago," said Carl Van Horn, director of the John J. Heldrich Center for Workforce Development at Rutgers.

The Report comes from a survey of 1,153 workers nationwide, taken between July 24 and Aug. 3 — a time frame that included a barrage of stories about global unrest. But it sheds light on a disconnect between statistics that indicate the economy is gaining momentum and Main Street workers who aren't benefiting. The Rutgers report is titled "Unhappy, Worried and Pessimistic: Americans in the Aftermath of the Great Recession." Among the findings:

• Two-thirds of Americans think the economy is the same or worse than it was a year ago, and 73%  don't expect it to improve in the next year.
• 33% think changes in their standard of living caused by the housing bubble's collapse and the recession that followed will be permanent.
• 78% has little or no confidence that the federal government can help.
• Only one in seven believe the average American is happy at work.
"They're really still suffering the consequences of what happened during the recession," Van Horn said.

Good and Bad Statistics:
The report helps explain a series of data that on its face is a paradox. The Standard & Poor's 500 this week has flirted with record levels. The nation has added 1.6 million jobs during first seven months of the year, the strongest job growth since 2005. And, its unemployment rate has declined from 8.2 percent in March 2013 to 6.2 percent last month.

But retail sales in July were flat from the previous month. And, personal income growth, particularly from wages, has been sluggish.

Consider the negative responses to this key question:
How do you describe Americans at work?

Happy: 14%
Well Paid: 18% 
Lazy: 23%
Productive: 43%
Highly Stressed: 68%
Not secure in their jobs: 70%
Source: John J. Heldrich Center for Workforce Development at Rutgers University

Overall, these response paint a very gloomy picture among consumers, who are responsible for generating almost 70% of the economic spending and growth for America’s economy. 

Is there a solution? 

According to the American Consumer Council, three things can be done to improve the economy and encourage more consumer spending: First, there’s a genuine need for more jobs. ACC supports a job stimulus program that provides tax-break incentives for American companies in the form of a tax credit for every new job they create. Secondly, ACC wants to see less government regulation, especially for small businesses (under 100 employees) to encourage hiring. Finally, ACC supports an immediate increase in the nation’s minimum wage with gradual increases over the next three years to $10.50 per hour.

Given the dismal attitude of so many consumers, action is required now!

Consumers Call to Action: Don't Let Federal Regulators Limit Your Financial Options

The National Credit Union Administration (NCUA) is considering bowing to pressure from the bank lobby and limiting legitimate associations like the American Consumer Council (ACC) from partnering with federally-chartered credit unions.  If this happens, it will hurt you as a consumer. Your ability to join a credit union will be severely limited.

At a time when the NCUA should be promoting credit unions to help consumer and rebuild America’s middle-class, the NCUA is unfairly attempting to restrict association members from joining credit unions. 

We need your help to stop this regulatory meddling and send a message to Washington that consumers have rights, and consumers should be able to join a credit union through their associations or non-profit organizations, if they so choose. Did you know that over 68% of all ACC members belong to a credit union? Let’s not lose that option!

The American Consumer Council is requesting that you email Gail Laster, Director of the NCUA’s Office of Consumer Protection (OCP), and ask her to "certify ACC as SEG Compliant" so that ACC members can continue to join credit unions and enjoy the many benefits credit unions offer consumers. ACC will continue to provide consumers with financial education programs and other important services. But, we need our credit union partners to do this. Credit unions have been a key partner with ACC in delivering important financial education, programs and services to our members.  

Please act today!

Below is the email address and Twitter address for Gail Laster at NCUA-OCP: Email: ocpmail@ncua.gov   -or-  Twitter: @The NCUA  --  Phone: 703-518-6640  or  FAX: 703-518-6439

Thank you for your help on this important matter and for standing up for your right to choose your financial institution as a member of the American Consumer Council.

P.S.  Please send a copy of your email to ACC at: Info@americanconsumercouncil.org

Corporate Social Responsibility and the Minimum Wage

Perhaps, the “Father of Corporate Social Responsibility” was Henry Ford. One hundred years ago, in 1914, Henry Ford stunned the industrial world by more than doubling wages to $5 a day. As a result of this progressive move, Henry Ford helped build America’s middle class and create today’s consumer-driven economy. He also put his Ford brand on the path to great success by endearing his company to every American family.

 

It’s now time for this generation of business leaders to follow in Henry Ford’s visionary footsteps and practice CSR by raising the minimum wage to a “living wage.”  And, what should that wage be? According to MIT’s Living Wage Calculator, it varies from city to city across our nation. But, regardless of the wage amount, the goal must be to lift people above the poverty line and expand America’s middle class so that we can experience a sustained economic recovery and ensure prosperity for the next twenty years. To calculate your city or state’s living wage, visit: http://livingwage.mit.edu/

 

Here are three living wage examples. In San Diego, the MIT Living Wage Calculator calls for $11.38 per hour or $23,671 per year. In Atlanta, it’s $10.10 per hour or $21,007. In New York City’s Queen Borough, it’s $12.75 or $26,521 per year. None of these wages are outside the boundaries of fair and reasonable compensation.

Can any prudent business leader or entrepreneur seriously argue that raising the minimum wage to a “living wage” will “break the bank?” If so, I would question that leader’s logic and standard of fairness. I would also ask them to live on $7.50 - $8.25 an hour for the next 30 days to see how it feels to struggle in the trenches of corporate America to make ends meet. I’m sure their opinions of what is “fair and reasonable” would change quickly.

If we truly believe that our nation stands for Life, Liberty and the Pursuit of Happiness, doesn’t part of that sacred covenant also ensure that minimum wage earners deserve a fighting chance to experience the American Dream? If not, then greed and arrogance will rule us.

Let’s set aside the politics and arguments of greed to come together and strengthen America’s middle class. Let’s follow Henry Ford’s lead and do the right thing. Actually, according to the American Consumer Council, raising the minimum wage makes good business sense. By boosting the minimum wage, companies will help expand the middle class and empower more consumers. This will create more spending and help to create higher corporate profits. That’s good for businesses, shareholders and investors. 

As the power shifts from the corporation to the consumer, it’s time for business leaders to stand up for consumers by ensuring a living wage for all workers. It’s time to rebuild America’s middle class.

About the Author:  Thomas Hinton is president of the American Consumer Council, a non-profit consumer education organization with over 145,000 members. He can be reached at: tom@americanconsumercouncil.org 

Why Do Leaders Lie?

This is a serious problem that has not only resulted in the unnecessary and tragic deaths of 13 people, but it calls into question the integrity of GM’s leadership. Why did they withhold this information from consumers and dealers? If the leadership at GM did not tell us the truth, they lied. It’s that simple. There’s no shades of gray when it comes to life and death issues. Sure, they can settle lawsuits and buy the silence of grieving families. But, the fact is leaders lied. It’s that simple.

When human lives are at stake and the leadership of a company knows they have a faulty problem with their product, leaders have a sacred responsibility to come forward and warn consumers. When leaders do not come forward and issue a warning to unsuspecting consumers, it is a criminal act and they should be charged, convicted and punished harshly to send a message that society will not tolerate liars whose silence or misleading statements cause deaths.

It has become all too convenient for leaders to lie. Recently, consumers were sickened by contaminated Foster Farms chicken. Their leaders did not come forward and accept responsibility until they were pressured by consumer organizations and retailers. Why? What were Foster Farms leaders afraid of?

Toyota’s leadership denied any responsibility related to its faulty accelerator problems in 2009.  Its chairman was shamed before the United States Congress and Toyota suffered major losses because of its credibility gap and deceptive practices. Ironically, despite jury convictions holding Toyota responsible for the sticky accelerator problems, the U.S. Department of Transportation issued a report stating most of the crashes were the fault of drivers who stepped on the accelerator instead of the brake. What rubbish! Tell that to the widow of the California Highway Patrol officer and his passengers who died in a fiery crash caused by the faulty Lexus accelerator. Is anyone with a brain suggesting a CHP officer doesn’t know how to tell the difference between the accelerator and the brake?  So, this is the nonsense companies and government agencies are feeding us; and, they expect us to believe them!  No wonder consumers have lost faith and trust in government and corporations.

It seems the system is full of liars who will do anything and say anything to cover their rear. But why? What’s wrong with coming clean and telling people the truth? No one is suggesting that a company needs to admit guilt. That’s why we have courts. But, certainly, when the data suggests you have a problem with a product, you need to alert your consumers. It’s the only way you will maintain their trust and earn their respect. But, corporate leaders have been taught by their shareholders and lawyers to be silent, say nothing, don’t admit to anything that could negatively impact our quarterly earnings. This is the low level to which corporate leadership has sunk. Had it been the daughter of GM’s president who was killed because her ignition switch clicked off, I wonder how fast GM’s engineers would have identified and solved the problem?

Now, GM has serious credibility problems with consumers. Let me put it in terms the bean-counters and leaders at GM can relate to. The bottom line question that GM should be worried about it this: “What parent would ever buy their teenager a GM product knowing its leadership withheld data that contributed to the death of 13 people?” The answer is no one!

Consumers Feeling So-So as 2013 Winds Down

It’s been a so-so year for American consumers as 2013 winds down. While consumers became less pessimistic in November about their economic prospects, the impact of October’s partial government shutdown, the lack of any significant accomplishments by the Congress, and the embarrassing failed launch of the ObamaCare website all contributed to a ho-hum reaction from consumers.

Bloomberg’s Christopher Wellisz (cwellisz@bloomberg.net) reports that the gap between positive and negative expectations for the economy shrank to minus 14 from a two-year low of minus 31 in October, according to data from the Bloomberg Consumer Comfort Index. That's positive news.

Thomas Hinton of the American Consumer Council, a non-profit consumer education organization, stated, “We are basically back to square one in terms of  consumer sentiment prior to the government shutdown.”  Hinton added, “It’s not surprising that consumers have low expectations for government to accomplish anything significant this year. This will not bode well for incumbents in 2014 if the lack of progress continues.”

On a positive note, the American Consumer Council expects 2013 consumer holiday spending to be near last year’s spending levels as a result of improved economic conditions, pent-up demand for necessary consumer items and an aggressive retail campaign to lure shoppers into stores before Thanksgiving. ACC also expects online holiday spending to jump by 7% over 2012 according to member survey responses.

The American Consumer Council is a non-profit consumer education organization with over 142,000 members and 44 state consumer councils. For information, visit: www.americanconsumercouncil.org

ACC Wants P&G and Dopps to Strengthen Safety Features of Tide Pods

The American Consumer Council (ACC) has called upon its members to contact The Procter & Gamble Company and Dopps, the seller and manufacturer of Tide Pods, and demand they strengthen the safety features of this product. 

According to complaints from ACC members and a recent ABC News report, to some kids, the bright colors and bite-size packaging of single-doss packets of laundry detergent look too much like candy. A large number of young children have consumed the Tide Pods and suffered serious repercussions including severe nausea, vomiting and diarrhea.

Thomas Hinton, president of the American Consumer Council, said, “While Dopps has taken several steps to address product safety concerns, it’s not enough. Too many children are still accessing this product and suffering serious physical consequences.  We’re asking P&G and Dopps to re-examine their packaging and hamper the product's ease-of-access so children cannot open it so quickly.”  

Hinton added, “It resembles a candy jar and that attracts youngsters to  eat it. P&G and Dopps need to move quickly to change the features and safety packaging of Tide Pods .”

ACC Meets NCUA Requirements for Associational SEGs

The American Consumer Council (ACC) has received an independent legal opinion stating that ACC meets the National Credit Union Administration's (NCUA) "totality of circumstances" test which is required in order to be approved as an associational SEG (Select Employer Group).

The independent legal opinion was requested by a large federally-chartered credit union and rendered by the San Diego law firm of Selzter Caplan McMahon Vitek on October 1st.

In essence, the Legal Opinion states that ACC meets the seven criteria set forth in the Federal Credit Union Act, Section 109(b) that pertains to associations and the requirements necessary to affiliate with a federally-chartered credit union. 

Copies of the Legal Opinion may be obtained by contacting ACC's media office at: info@americanconsumercouncil.org 

Have We Forgotten About Those Consumers Hurt by the Recession?

Here's a powerful article that appears in Fortune magazine by Sheila Bair, the former head of the FDIC. We recommend you read it because we think her points are right on and these problems still persist!

Thomas Hinton,

President

California Consumer Council

By Sheila Bair

I told myself I wasn't going to do a "Lehman" column given the media frenzy over this month's five-year anniversary of that institution's bankruptcy. But in researching a new book I am writing for young adults about the 2008 financial crisis, I have been uncomfortably reminded of the hardship so many families encountered because of the crisis, particularly their kids.

Their plight has been largely forgotten in the power politics that have overcome financial reform. It's all about winners and losers, with regulators and reform advocates pitted against a powerful industry lobbying machine, oiled by political money and the grease of revolving door jobs. The objective of protecting the public from another recession brought on by an unstable financial sector seems lost in the Washington shuffle.

So let me recount the heartbreaking memories of the families I have interviewed. They bear tragic similarities. Their problems usually started with a steeply resetting mortgage payment, or job loss or cutback, frequently combined with an unexpected health problem not covered by insurance. Whatever the catalyst, it is almost always followed by high levels of stress for the family, sleepless nights for parents and kids, deteriorating grades at school, lost hope as savings are depleted, and finally the loss of a home. The kids give up their rooms, their pets, their schools, their neighborhoods, and will always live with the traumatic memories of their forced dislocation.

MORE: Are we ready for the next meltdown?

To be sure, many of the parents I have interviewed bear some responsibility for their troubles. As home prices escalated, they repeatedly refinanced their houses to pull out cash. When the housing market turned, they were left with unaffordable mortgage debt, which far exceeded the value of their homes. But these cash-out refis were not always done to pay for fancy vacations or flat screen TVs as apologists for Wall Street would have you believe. Rather, more typically, the money was used to pay for college tuition, medical bills, or simply to help make ends meet.

Several of the families I interviewed never participated in the housing craze. They had traditional 30-year, fixed rate mortgages that they could no longer pay when they lost their jobs or suffered pay cuts. They did nothing wrong except live in a country where we temporarily deluded ourselves into thinking that a "self-regulating" financial sector tethered to a housing asset bubble could provide a solid foundation for prosperity.

These families are now clawing their way back. Many are living in apartments or spartan rental homes. Most have regained employment, but at significantly lower wages. Several have managed to start rebuilding their savings. Their kids have grown to accept getting by with less. Some have foregone college, as their parents depleted their college accounts in a desperate attempt to hold onto their homes. Instead, they join the military or try to find work in a teen labor force which has a 24% unemployment rate. Others go to college by borrowing heavily. They graduate, then move back home, taking a low-paying job. As young people, they should be filled with hope and optimism. Instead, they confront limited job opportunities, reduced standards of living, and mountains of student debt.

MORE: Government banks $15 billion on Citigroup bailout

Their lives, like so many across the country, are improving only after years of personal struggle. Protecting them from another crisis should be regulators' highest priority.

Some say that the people who participated in the bailouts five years ago (and I was one) are "heroes" because we "saved the system". But it didn't take heroism to throw trillions of government cash at big financial institutions. The true heroes are those regulators who can show the courage to tame the system against the fierce lobbying of the very institutions that benefited from the government's largesse.

As the Lehman bankruptcy assumes its place in the annals of our financial history, it saddens me to think how historians will characterize the timid reform effort that has followed so far. With the Dodd-Frank financial reform law barely one-third implemented, regulators still have the opportunity to make the post-Lehman era their finest hour. I hope they rise to the occasion.

Sheila C. Bair, the chairwoman of the Federal Deposit Insurance Corporation from 2006 to 2011, is the author of Bull by the Horns: Fighting to Save Main Street From Wall Street and Wall Street From Itself released in paperback this month

Our Relationship with Credit Unions Matters: A Response to Keith Leggett's Credit Union Watch Blog Posting of July 10, 2013

Keith:

Your recent Blog, which referenced the American Consumer Council (ACC), has several errors and inaccuracies that need to be corrected.  For the record, the American Consumer Council is a non-profit consumer education organization with over 140,000 members nationwide. Our focus is consumer advocacy, financial education and corporate social responsibility. Our common bond is very clearly stated in our bylaws and literature.

For you to suggest that consumer-members of ACC should not be eligible to join a credit union is arrogant and discriminatory. It smacks of the typical “Big Bank” gobbledygook that is offensive and condescending to most American consumers. And, let’s be candid here, it’s the reason why so many banks are reviled by consumers. Simply stated, banks have lost our trust.

Consumers haven’t forgotten that is was Big Banks – not credit unions – that betrayed consumers and largely caused the Great Recession with their shady practices and “wheeling n’ dealing” that devastated our retirement and savings accounts. It was Big Banks that deceived consumers with mortgage deals and then illegally foreclosed on millions of consumers’ homes.

At a time when banks have all-but-deserted the average American consumer, credit unions are more vital to the financial success of our members, entrepreneurs and small businesses than ever before. We proudly stand with our credit union partners because they do an outstanding job serving the financial needs of consumers.

So, Keith, let me help you get your facts right. As with every non-profit organization, ACC has membership eligibility criteria which is listed in our bylaws and on our website. Therefore, it’s misleading for you to suggest that “anyone can join a credit union [or our organization] by checking a box on a credit union application.”  That’s just not true.

Consumers join our organization by completing a membership application and paying the appropriate dues. Every individual who wants to join ACC must meet our membership criteria in order to become a member.  We also provide scholarships to a segment of the consumer population that cannot afford our annual dues.

Also, we actively support many areas of the country where there are large numbers of under-served consumers. Unlike banks, which have closed branches in under-served regions and “blacklisted” many consumers because of simple mistakes they made during their banking transactions (as recently reported in the New York Times), credit unions have been a strong, reliable financial partner with ACC by delivering value-added services at competitive rates to these under-served consumers and regions.

Finally, it’s ludicrous for you to suggest that because a credit union enrolls members of the American Consumer Council that they are somehow “straying from their charter.”  Every credit union is strictly regulated by the NCUA or its state regulator. We have found that the men and women who work tirelessly for the NCUA are dedicated, competent people who follow the letter of the law. This is why ACC must adhere to the same guidelines that every other Select Employer Group (SEG) must adhere to when we put forward a request to have a credit union represent or enroll our members. It’s a cheap shot on your part to blame regulators for doing their job… and a good job at that!

It’s unfortunate your perspective is so lop-sided simply because you work for the American Bankers Association, a good organization but one that really doesn’t embrace the traditional American values of competition and capitalism. How ironic.

Also, it’s obvious from your own blog postings, articles, and statements which I’ve read, that you seem hell-bent on destroying credit unions, which only represent 6% of the financial market; and, in the process, the “little guy.” Certainly, there must be a more enlightened way for you to communicate your views than by knocking the “little guy” – the average American consumer who feels abandoned by the very banks you represent.

While your position at the ABA does give you a platform to espouse your views towards credit unions, it doesn’t give you the right to misstate the facts. Nor, should it give credence to your lop-sided idea that consumers should be denied the right to choose their financial relationships; or, have the right to become members of credit unions; or, suggest that credit unions not be able to legally partner with organizations like the American Consumer Council, whose mission is to help our consumer-members obtain the financial services they need to live their dreams.

Thomas Hinton 

President & CEO

American Consumer Council

www.americanconsumercouncil.org