Not to labour the point but credit unions aren’t particularly expensive for unsecured personal loans relative to the banks. The ones that insist upon high levels of savings as collateral are though, but that’s nearly a separate argument.I still think there is something to be said for competing on price.
I accept the point made earlier than PCP is not a direct comparison with CU personal loans.
Could a CU lend at 4.9%, and cover
- cost of funds (=0%?)
- operating costs
- credit risk
In some instances, that's actually the best solution - better to see some credit unions dissolve, and distribute their net assets to their membership.Which in turn may be the end of credit unions