I agree to the differentiation to the traditional CUs to the more aggressive. If you recall, I pointed that out.
Franchise limitations between states in no way justifies different tax treatment. There are lots of banks that don’t cross state lines.
My bank approves loans that other banks won’t make. The fact that a CU approved your father’s loan when a bank wouldn’t is virtually meaningless. Different institutions have different tolerence for accepting risk. Whether a bank or a CU is involved has absolutely nothing to do with the approval or disapproval of a loan.
My bank offers 2 credit card plans. One currently carries a 12.9% rate and the other a 9.9% rate. Granted, we are the exception rather than the rule, but not all banks rape their customers. We have carved out a loyal niche with fair pricing and we still make decent money. Our asset quality is pretty darn good, too. We do not stick it to Joe 6-pack like most banks.
Those rates are very competitive, even when compared to the credit unions.
That fact might be meaningless to the financial institution, but to the customer (or member) it can make a huge difference.