- Michigan Legacy Credit Union has blocked customers from using online gambling sites.
- The blockage comes as it leaves banks and credit unions in debt from low-income customers.
WYANDOTTE, Mich. – As the legal online gambling industry continues to rise in Michigan, there have been some negative pop-ups when it comes to different banks and credit unions in the state.
More specifically, the Michigan Legacy Credit Union has blocked their customers from using their accounts at legal online gambling sites. In the first two weeks of Michigan having legal online gambling, they saw 1,200 transactions of around $83,000 online gambling sites.
“This could truly create a financial disaster for members— We just thought the potential risk was way too much, and it wasn’t worth it. How many people are going to want to pay on a gambling debt?” said CEO of Michigan Legacy Credit Union, Carma Peters.
The reason for cutting off their customers from Michigan online casinos is because if their debts are not paid back, the credit union must charge it off as a loss.
They did mention that they could eventually remove that roadblock but are concerned at how these gambling sites are targeting their audiences.
One bank has taken action for this problem already. Comercia Bank has informed their customers that any users that use their accounts to pay online gambling sites will see their accounts suspended.
There are other banks that could soon follow this and cut all ties from their customers and legal gambling sites such as Capital One, Huntington Bank along with JPMorgan.