Two Harvard doctoral students made the argument that credit cards offered by credit unions are a "great test case" for the newly-signed Credit Card Accountability, Responsibility and Disclosure Act.
In a June 23 New York Times op-ed, Ryan Bubb and Alex Kaufman said they conducted a study comparing credit union and bank credit cards. They found that credit unions are less likely to charge the fees and penalties that would be eliminated under the new legislation. Most credit unions do not increase the interest rate if the borrower fails to make a minimum payment and they tend to have lower annual fees and longer grace periods.
Bubb and Kaufman acknowledged that "credit unions have the advantage of being exempt from corporate income taxes."
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