Pelican State Credit Union leaders had the opportunity to meet with congressional members from Louisiana and share the value Pelican brings to the communities we serve. This annual gathering of thousands of credit unions from across the country is held each year at America’s Credit Unions Governmental Affairs Conference in Washington, D.C.

Alongside over 40 other credit unions from our state, we spent time with these legislators to learn more about proposed changes that could affect our members’ monthly budgets and to advocate for our members’ best interests. Lobbyists have been pushing for financial institutions to lower the interchange rate charged on transactions.

This is the small fee that a business pays the card processor to allow customers to pay with credit cards. Lowering this interchange rate will make it difficult for financial institutions to continue offering many of the “perks” you see from your credit cards, such as points, cash back, and airline miles.

These increased rates will also mean that financial institutions like Pelican will see increased costs for processing credit card payments, combating fraud, and handling disputes. Businesses haven’t seen an increase in interchange rates in over 13 years, and now is certainly not the time to raise these rates.

The Consumer Financial Protection Bureau is leading the charge against so called “junk fees.” This includes Overdraft Protection (ODP) fees, which keep many of us from visiting high-cost payday lenders to make ends meet between paychecks. Additionally, Pelican uses the fees we earn to give back to our members in ways that truly help them such as offering lower rates on loans, higher dividends, and financial education.

Because we believe that bad things happen to good people, we also believe in offering the best products to our members while extending a helping hand to those who are in difficult financial situations. To further this mission, Pelican offers free Financial Wellness Workshops and Credit Counseling services to help members get out of debt and improve their financial situation.

Even at the national level, proposed policy changes like these can have profound impacts on all our daily lives. While these changes may seem insignificant, they can surely have a ripple effect by causing increased prices, elimination of rewards, and even loss of access to vital financial education services. Pelican is wholeheartedly committed to advocating for our members and ensuring they have access to the best financial products and services we can offer.

We are proud to be your Financial Family for Life.






What is a Credit Union?
Unlike banks, credit unions are not-for-profit and member-owned. This means that any money we make is passed on to our members in the form of better rates, higher dividends, and improved products and services. When you open a primary share with Pelican, you're required to keep a minimum of $5 in it. This represents your share of the credit union and allows you to vote on important issues, such as the election of member representatives to serve on the board of directors.

What is the Purpose of Credit Union?
Credit unions were created to promote thrift and provide credit to members. In fact, many credit unions were started by people of ordinary means who couldn't get approved by their local bank! Credit unions also work together to do good in the communities they serve. 

Why are Credit Unions Tax Exempt?
In short, credit unions are tax exempt because they are not-for-profit, a lot like churches. We don't exist to profit off of our members. We continue to serve all of our members, including low-income consumers who are often neglected by traditional financial institutions or targeted by predatory lenders.

In fact, because of our dedication to our members and their individual situations, Pelican has been recognized as a Low-Income Designated Credit Union (LID) and Community Development Financial Institution (CDFI).

Why Is It Important that Credit Unions Remain Tax Exempt?
A tax on credit unions is not just a tax on a not-for-profit business—it’s also a tax on over 100 million credit union members across America. The tax exempt status for credit unions is not a benefit to the company, it’s a benefit that credit union members get to enjoy—to the tune of almost $10 billion each year.

Don’t forget—credit unions are still participants in a very competitive financial services market. Credit unions and small, local community banks are competing against large national for-profit banks and other financial service chains. By eliminating the tax status, many credit unions and community banks would be forced out of the market and others will be unable to offer competitive rates and serve those that are unbanked.

If credit unions are taxed, there would be no incentive for them to remain not-for-profit. Smaller credit unions would be unable to stay afloat and serve their members and would likely disband, causing people across the country to lose the only sector of the financial industry not driven by profit.

Does Pelican Pay Any Taxes?
While we may be tax exempt, we DO pay taxes. We pay property taxes, tangible personal property taxes, payroll taxes and more to the government. As Louisiana’s largest state-chartered credit union, we also pay unrelated business income tax. Not only do we pay taxes, but members like you also pay taxes on the interest your accounts earn.
Please contact us if you have any questions regarding credit unions' tax exempt status. We're more than happy to help answer them for you!