Auto title loans are growing rapidly in California and 24 other states where slack regulations have allowed them to gain popularity. Credit unions need to take notice.
A 2011 opinion letter says state chartered credit unions could convert through a purchase and assumption transaction.
The $21M Eagle Credit Union still suffers from its decision to expand just as the Great Recession hit.
If the three largest state-chartered credit unions in California were to convert to federal charters, the state’s regulator would lose $1.7 million of its $7.2 million budget, leaving small and midsize state-chartered credit unions to subsidize that loss.
This preview from our Sept. 4 print edition looks at a new state law that should lower disproportionate fees for the largest credit unions in the state.