Who is most harmed by unavoidable monthly fees? The poor
Assume an honest, hard-working, younger, poorer member, living paycheck-to-paycheck has $100 in their savings account and gets charged $3 in unavoidable membership fees per month, which is $36 per year, simply for being a member. They are losing 36% of their wealth. $36/$100 = 36%. This result is even worse and more evil than loan sharks and payday lenders, because such members are not even receiving a loan. Just the opposite, the member is loaning their money to the bank or credit union when they deposit it, yet these sharks, like at Arizona Federal Credit Union, are taking a painful, harmful bite out of the member’s wallet. This is clearly not mutually beneficial to the member, no matter how the mouthpieces and propagandists at Arizona FCU try to spin this wealth destruction as good for the member. The fee breeds resentment. It’s a poor value. It creates member disloyalty.
Next, assume an older richer member has $10,000 in their savings account and gets charged the same $3 per month, which is the same $36 per year, simply for being a member. They are only losing 0.36% of their wealth. $36/$10,000 = 0.36% The poorer member pays 100 times more of their savings in unavoidable membership fees, on a percentage basis, than the richer member.
This is why unavoidable monthly fees are wrong, unfair, and bad for society. Arizona Federal Credit Union, this is shameful. How can you claim you care about your community?
In addition, this is why unavoidable monthly fees are bad for the credit union movement. It kills the reason for having Bank Transfer Day, which encouraged bank customers to escape high fees and uncaring attitudes at banks like Bank of America, to join a credit union instead. What happens when the fees are higher at credit unions and the attitudes are worse at credit unions, than banks, like at Arizona FCU? It damages the reputation of all credit unions.
In conclusion, financial institutions, especially credit unions, should not charge unavoidable monthly fees, no matter what they call it. It is simply a terrible idea.
Mr. Westad, tear down this fee!
Here is a list of competitors with better values, that don’t try to stick it to their members with unavoidable fees: