CHICAGO – The Woodstock Institute, an occasional critic of howwell credit unions serve the low-income, has sent a letter to theNCUA expressing concern about the phenomenon of credit unionschanging their charters to those of mutual banks. “Woodstock fullysupports consumer choice,” wrote Woodstock senior vice presidentMarva Williams in the August 23 letter. “But in our opinion creditunion conversions to mutual savings banks may be to the detrimentof consumers and communities. Our years of research on thecomparative suitability of different financial products forlower-income families show that credit unions have significantadvantages over other regulated financial institutions,” the lettersaid. Williams noted that Woodstock still has concerns that creditunions may not be serving low-income members as well as they could,but pointed out that credit unions engage in more financialliterary education and offer more affordable products and loansthan banks. She also cited a recent Woodstock study whichdocumented how credit union-issued credit cards have fewer fees,lower fees, lower default rates and much clearer terms andconditions. In conditions where credit unions are consideringconversions, Williams wrote that the NCUA should push the creditunion to show that such a move will bring real benefits to CUmembers and should even allow a community to weigh in on how itwould feel about a conversion. “In the event that a conversion isbeing considered, the members of credit unions should be fullyinformed on how it will impact their voting rights and access toaffordable services and loan products,” Williams wrote. “Further,credit union board of directors and senior management shouldprovide objective information on the advantages and disadvantagesof a conversion as well as any financial returns to them. The NCUAshould ensure that the conversion offers tangible benefits for themembers of the credit union and that any retained earnings arereturned to the members. In addition, a suitable public commentperiod as well as shareholder meetings should be instituted priorto the distribution of ballots.”