Credit Union Holiday Account = No Stress!

Not sure if it's correct to call them Christmas or Holiday accounts, but many credit unions continue to offer these little gems. And this blogger is completely prepared for the season, thanks in part to her credit union:

And is any of it charged? NO NO NO!!!! lol I always start adding to my Christmas account at the credit union every Friday. That's ALL it's for. I've done that for years. NO Stress!!!

No stress--that's all I want for the holidays.

Credit Union Erases Frustration to Get Home Deal Done

Is quality service and commitment to the consumer becoming so rare that it's considered "old-fashioned?"

The headline of a recent New York Daily News story proclaimed, "Old-fashioned credit unions are gaining popularity with homebuyers." It tells about how more New Yorkers are turning to credit unions for quality home loans and service.

In this story, Municipal Credit Union in lower Manhattan helped Onika Shepherd and her family move into a home of their own. Onika obviously was thrilled about the credit union and her loan officer:

"When I was frustrated, he was the person who showed me how to get a deal done. That's how it's supposed to be in a credit union."

My credit union continuously evolves to provide the financial products and services I require for my speedy, modern and hectic lifestyle. But the outstanding service never changes. So in a way, I guess I'm old-fashioned, too.

Click here and read the complete story.

Kansas Credit Unions Offer Payday Alternatives

Click your ruby slippers together and repeat: "I want to get out of this payday trap...I want to get out of this payday trap..."

Dorothy's magical slippers may be a fantasy, but financially-buried folks in Kansas are following the Yellow Brick Road to local credit unions. The cooperatives now offer alternatives to payday loans, says one credit union leader in the Dodge City Daily Globe:

There are a lot of folks who come in and take a payday loan and, for whatever reason, get caught in the trap of not being able to pay that loan. Our goal as a credit union is to help folks who are caught in that situation and show them there is a better way to borrow, a better way to handle their finances, and help them to become good members of our credit union for the rest of their lives.

And Toto, too! Click here for the online story.

Credit Unions Are Different; They Have 'Shares'

I like being a customer/member/owner of the institution where I borrow and stash my monetary fortune--what little I have, anyway.

Customers have money "on deposit" at the bank. I own "shares" at my credit union. Banks pay interest. Credit unions pay dividends.

Most deposits and shares are insured by the federal government, as explained in this story in thestreet.com.

Oooh, I feel so riiiich when I get dividends!

Research: Credit Unions in Top 10 for Customer Experience

Credit unions were the only non-retailer brand in the top 10 spots in a new Forrester Research's 2007 Customer Experience Survey.

"A credit union" clocked in as the No. 5 brand, sharing the limelight with Costco, Borders and Barnes & Noble. According to Forrester:

Credit unions and Borders come in first for ease of use. Led by credit unions and Borders, 33 firms received a rating of “excellent” for their ease of use.

The Cambridge, Mass.-based Forrester asked nearly 5,000 consumers about their interactions with 112 firms in nine industries. Consumers weighed in on the usefulness, usability and enjoyability of those experiences, said Forrester.

Retailers dominated the survey's top 10 spots, while the bottom 10 included communications companies, healthcare providers--and banks.

Click here for Forrester's recap, published Nov. 28.

Hoopty Made Possible By Your Credit Union

We all know banks and credit unions make both used and new car loans. But hey, some of us feel quite differently about our trusty transporters. Now, Carolina Postal Credit Union in Charlotte, N.C., is singing my siren song. They offer:

Great loans for ugly cars.

As part of the campaign, the credit union is giving away bumper stickers which proudly proclaim, "i love my hoopty."

They've even started a blog, where members can submit photos of their joyous jalopies. Are we supposed to have this much fun at a financial institution?

Click here for ilovemyhoopty.

Credit Unions Have a Different Atmosphere

Credit unions, by offering lower service fees and better interest rates than banks, have carved out a niche for themselves in the financial services industry, according to a Nov. 26 article in a Delaware Business Journal.

While some credit unions may not have as expansive branch networks as banks, credit unions have an advantage in offering smaller, more consumer friendly options, the article said.

"It's a different atmosphere," said Patrick Mahaney, president/CEO of the Delaware Credit Union League, referring to the facts that unlike banks, credit unions are non-profits, have no shareholders, and have boards of directors composed of unpaid volunteers from the credit unions' membership.

The Best Little Deal in Banking: Credit Unions

The secret about credit unions' super value is quickly leaking.

The Nov. 12 edition of Money Magazine says credit unions are "the best little deal in banking."

Credit unions offer sweet deals on credit cards and auto loans, the best CD rates in the business and heaps of personalized services. And yes, you too can join one.

I guess the story is not a bad thing: The less secrets that exist in this world, the more consumers benefit.

The online version also is available on CNNMoney.com. Click here to read the story.

Credit Unions Lead, Banks Need Coaxing in Payday Alternatives

Public Radio's Marketplace reports credit unions are trying to help ween people from the perils of payday loans, while reluctant banks need additional coaxing. Read:

Faith Community United is one of a small but growing number of credit unions trying to give payday lenders some competition. Now the FDIC wants more banks to jump in to the race. The FDIC's Bob Mooney says that's why the federal agency released guidelines earlier this summer for the type of payday loan they'd like banks to offer: Small, one-month loans capped at a 36 percent annual percentage rate.

Meanwhile, the bank regulator, the Federal Deposit Insurance Corp. (FDIC) is encouraging banks that it supervises to offer affordable small dollar loans to these customers.

To entice banks, the FDIC is offering extra credit at exam time. Every year banks have to show they are trying to meet the federal Community Reinvestment Act by doing business in the rich and poor parts of their neighborhoods. Banks that offer small dollar loans that follow the guidelines will get "very favorable" consideration in their annual reviews.

I guess we can't blame the banks for not looking out for the little guy. Unlike credit unions, it's not a natural bank tendency for the for-profit fellows.

Another stark contrast between banks and credit unions.

Read (and listen) to the complete segment on the Marketplace website.

Credit Unions Offer Helping Hand on Capitol Hill

Opening House office building doors, shielding pedestrians from the rain, and distributing mints to Capitol Hill staffers and members of Congress were all activities undertaken during the Credit Union National Association's "Credit Union Helper Day on Capitol Hill" Oct. 24.

The tasks performed by CUNA staff members and others were aimed at illustrating to those on Capitol Hill how credit unions help people--especially their members, reports the trade association's News Now.

According to CUNA spokesman Patrick Keefe:

Generally, people appreciated our efforts, and a good number asked us for more information about why and what we were doing. When we explained our connection to credit unions, we heard more than once 'I love my credit union.'

However, the CUNA representative said, not everyone was cheered by the credit union efforts. He noted:

An apparent group of bankers, entering through a door held by a credit union helper, shouted 'credit unions are evil – they should be taxed.'

Keefe said the credit union representative just smiled and told them to have a good day.

Small Biz Cites Credit Union for Its Success

Cwick Crown, a small family-owned crown moulding business whose products will be launched in 56 New Jersey Home Depots this week, has cited its success in part to its relationship with USA Federal Credit Union in San Diego, according to a story in the Nov. 1 The Daily Transcript.

The report says Cwick Crown interviewed several other financial institutions at its start-up prior to partnering with USA Federal Credit Union, but saw that many of the banks would charge high fees. Says Ben Rasmussen, chief operating officer of Cwick Crown:

We didn't get the personal treatment we have at USA FCU.

Click here for the complete story online.

Today Show: Credit Unions Best for Small Savers

Financial editor Jean Chatzky, on the Oct. 22 Today Show and in her MSNBC.com column, says credit unions are the best place to go if a consumer is a small saver or a car-loan borrower.

Chatzky, who is an editor-at-large for Money magazine, analyzes the "best banks for your buck." She says:

Credit unions are like not-for-profit banks. They have an even smaller, more individual presence than small banks. Some have a system of branches, some do not. But they're known for charging lower fees and offering higher rates of interest than banks. The catch is that you have to be a member to get a good deal.

Read--and watch--the segment online. Click here.

NPR: Credit Unions Seek Payday Loan Consumers

National Public Radio's (NPR) "Morning Edition" reported Oct. 15 on credit unions' efforts to help consumers avoid payday loans with high rates.

NPR host Steve Inskeep noted that "a growing number of credit unions hopes to steer consumers who are strapped for cash away from payday loans by offering less expensive alternatives."

Reporter Cheryl Corley interviewed a woman who had used payday loans, and Ed Jacob, CEO of the North Side Community Federal Credit Union in Chicago.

Jacob explained the credit union began offering payday loan alternatives after noticing members were paying interest fees of more than 600% on payday loans. Its short-term loan is for $500, at 16.5%, and is to be repaid in six months.

Click here to read the NPR story online.

Philly Credit Unions Help Folks Turnaround Subprime Mistakes

Two Philadelphia credit unions are offering services to help consumers who have made mistakes by signing onto subprime home loans, reports the Oct. 12 Philadelphia Business Journal.

Freedom Credit Union, a $338 million asset, Warminster, Pa.-based credit union, and Philadelphia Federal Credit Union, a $547 million asset, Philadelphia-based institution are offering a lifeline to those embroiled in subprime woes with loan refinancing options.

See how credit unions helped member Pam Watson in the story, Low home loan default rates at credit unions reflect homespun lending habits.

In Payday Battle: Banks AWOL, Credit Unions Get Praise

Credit unions deserve recognition for stepping up to help low-income households obtain small, low-interest loans, the Virginian-Pilot reported in its Oct. 8 edition.

The Pilot cited two credit unions, Langley Federal Credit Union in Hampton and Newport News Shipbuilding Employees Credit Union, who have offered small loans with lower interest rates to members.

Many low-income Virginians have been left behind by banks, so payday lenders "have slithered in to fill the void," said the article. Some lenders charge more than 300% interest on the loans, burying borrowers further into debt.

A Slurpy with My Surcharge-Free

Paging through yesterday's USA Today, this ad caught my attention. The question is simple, and the answer is even better--credit union surcharge-free ATMs.

The ad encourages consumers to join credit unions and use one of CO-OP's 25,000 surcharge-free ATMs, instead of using bank ATMs that carry high fees.

The ad also points out that a new deal will offer consumers a deal at many 7-Eleven stores.

Now I can get my Slurpy and surcharge-free spending cash all in one stop!

But where, oh, where can I find these elusive little gems? Fear not, this handy website shows you.

Credit union's motivation revealed during CEO interview

Credit unions exist to serve the financial needs of their members--there is no investor profit motive, no CEO stock options, and no sellout for big investor gains. It's all about member demands for products and services.

This point is reinforced in an Oct. 7 newspaper interview with a long-time Midwestern credit union CEO. The Dubuque, Iowa Telegraph Herald Executive Editor Brian Cooper asks Dupaco Credit Union CEO Bob Hoefer about the credit union's successful strategy:

TH: What's the next big thing coming?

BH: Brian, I have to tell you, whatever the members want is what we're going to try to do. I have no magic wand.

Share draft checking accounts. ATM cards. Home loans. Small business loans. Trust services. All guided by the members' desire.

It's a long interview, which you can read in its entirety here.

Survey: Customers fear bank fees more than crooks

Just in time for Halloween, an upcoming survey by the Gartner consulting group finds "many consumers are more worried about banks raiding their accounts than criminals," writes MSNBC blogger Bob Sullivan yesterday.

The research finds "consumers are five times more likely to switch banks because of hidden fees than security concerns." Sullivan quotes Garner researcher Avivah Litan:

"...Banks make the biggest deal about security and how they protect your accounts and spend a lot of money advertising that ... but what people really care about is fees.

Also surprising: the customer churn these fees generate. "When you have one in five customers leaving a bank because of excessive fees, that's a huge customer service cost. They must be making a lot of money from excessive fees."

Among Sullivan's "Red Tape Tips": Investigate a credit union near you.

Read Sullivan's complete MSNBC "The Red Tape Chronicles" blog post here.

Smart money is in credit unions, says consumer writer

Hey Smarty...Kelli B. Grant in the lastest edition of SmartMoney says "credit unions offer a smart banking option." In her "Deal of the Day," she say:

Credit unions aren't just for a niche group of steel workers or teachers anymore. In fact, these nonprofit, member-run financial institutions are more accessible than ever before — and they can be a much better place to stash your cash than traditional banks.

Click here for the complete SmartMoney story.

Banker likes ATM fees

Newsweek: Credit unions 'the most promising solution'

Jane Bryant Quinn's column about payday lending appears in today's Newsweek.

While credit unions aren't mentioned till the end of the piece, she speaks of credit unions in very favorable terms, calling them "the most promising solution," and highlighting alternative payday programs at a handful of credit unions.

Bank fees at record levels, says Bankrate

Boo!!!

Bank fees have hit all-time highs in several areas, especially ATM surcharges, bounced check fees, and monthly service fees, according to Bankrate's fall 2007 Checking Study released Wednesday.

The survey examined accounts at the largest banks and thrifts in 25 large markets or 249 institutions plus 16 Internet banks. Credit unions were not included, but the results may make members love their low or no-fees credit unions even more. In almost all categories, fees hit a record.

Motley Fool Says Get a Good Credit Card From a Credit Union

Next to signing up for the military, which makes you eligible for the very best credit card deals, The Motley Fool says go to a credit union to get the best card terms.

It says Consumer Reports asked 36,298 credit card users to talk about the 61,944 cards they stuff into their pockets. Cards from USAA Federal Savings and Navy Fedearl Credit Union ranked the number 1 and 2 best out of 100 cards in the survey. But, hey, you've got to be part of the military to get them. For the rest of us? The Fool says ranked number 3 are the good deals available with all the "plain old 'other credit union cards.'" Click here to see more about this.

Consumer Dude: 'bank at a credit union, not at a bank'

The U.S. Public Interest Research Group (PIRG) has in its crosshairs Bank of America's recently boosted ATM fees...to $3! Consumer hero Ed Mierzwinski on his blog says consumers have an alternative:

So bank at a credit union, not at a bank. Most credit unions waive surcharges on other credit union members. There aren't as many credit union ATMs, but there are some, especially in metropolitan areas. And plan your trips so you have enough cash so you don't need to stick your card into one of Bank of America's or some other big bank's double-dipping ATMs.

Banks Move Like a 'School of Fish' on Fees

Did they mean fish or sharks?

More rankle and furvor over BofA's decision to bump ATM fees to $3 per transaction. This from the Sept. 13 USA Today:

The development will likely lead other banks to raise their ATM fees, too. "Banks often move like a school of fish on punitive charges such as ATM surcharges and credit card late fees, so it's just a matter of time before others follow suit," says Greg McBride, a senior analyst at Bankrate.com (RATE).

CNN: CU Deposit Insurance 'As Good or Better'

CNNMoney's Answer Guy fields a question about why credit unions are ommitted in his lineup of great CD rates. The query wonders if it has to do with deposit insurance.

On they contrary says Answer Guy...it's because of credit unions' exclusive membership requirements--not everyone can access the rates. He also adds:

In any case, insurance on credit union CDs and other deposits is as good as or better than what you'd get through the FDIC. And credit unions often beat your neighborhood bank on the rates they pay on deposits (or charge for loans).

Blogger Fumes About Bank Charges

Well, "fumed" wasn't really the word this artist and college student used when describing her experience with one big bank's fee-for-all. She was already in the process of switching to a credit union, and had deposited cash in an out of state branch. The bank told her they put a "HOLD" on the deposit. She fumes about the accumulating fees:

That will be $175 in fees if they charge me - I will fight them to the death on this - I live next door and will sit in their bank everyday for hours until they give me a credit. I am beyond pissed off.

The funny thing is I was planning on changing accounts anyway and not because of anything they had done - just because the credit union has much better deals. Oh well - another dissatisfied Bank of America customer.

You shop locally--why not bank locally too?

Scanning the Internet over this morning's coffee, my mouth salivated at the mention of zucchini pancakes in a story in today's San Francisco Chronicle. But what really got my tummy growling was the story's buy-local perspective on belonging to a credit union:

While she flipped the zucchini pancakes, she laid out her best argument, "I say to people: So you shop at a farmer's market. You use alternative fuel or bike or take public transportation. But you still bank at Bank of America?" She laughed at the paradox of the small- is-beautiful crowd supporting a global corporation.

And for dessert:

"With banks, it's a business and all your money goes to make someone you don't know rich -- but with credit unions, all the money goes back into the community," Jessica explained. "It's people banding together to share the abundance."

Read Radical banking: You shop locally -- why not bank locally too?

Best card deals on campus at credit unions

The Sept. 4 edition of BusinessWeek advises college students to looking for a credit card "to keep walking past the tables loaded with freebies and into the credit union, assuming there is one on campus."

While credit union membership at colleges used to be limited to employees, the requirements for joining are much looser than they used to be. At some schools, such as the University of Southern California, these financial institutions open their doors to students and offer credit cards to students, among the other financial products. Credit unions are much easier to deal with if you have problems, and they are much less likely to jerk you around on interest rates."

Read BusinessWeek's complete story for yourself.

Consumer Reports: Credit unions best for credit cards

The revered consumer watchdog group Consumers Union in its October Consumer Reports publication said credit cards issued by credit unions received the best marks overall in a survey of 36,000 cardholders nationwide. According to the report:

Credit unions are run by members, so they have a vested interest in providing credit at very low rates. And they are more focused on keeping their members happy, while banks have to worry more about keeping their investors happy.

And the press is taking note:
> The best and worst credit cards [CNNMoney]
> Banks get low scores in credit card poll [Contra Costa Times]
> Report: Card deals better at credit union [The Oakland Tribune]

NY Times reviews credit union payday loan alternatives

When Peggy Truckey of Appleton, Wisconsin had debts totaling $1,300 to several payday lenders in the area last year, she knew she was in trouble--until she found GoodMoney, a program offered a thrift store and a credit union.

“Our goal is to change behavior, to interrupt the cycle of debt,” said Ken Eiden, president of Prospera Credit Union, who is also a director at Goodwill.

The Aug. 28 New York Times has the story.

Investor 'Fool' loves credit unions

Hey, here's a guy who feels like I feel about my credit union. It's love. Almost passion. John Rosevear, of the investor's trusted source, The Motley Fool, is gleeful about credit unions' better rates and friendlier service:

I've made no secret of this in the past: I love my credit union. Their great rates, low fees, friendly personal service, and flexibility in meeting my needs have made me a customer for life.

Read more on The Motley Fool website.

Mortgage haven: Credit unions

With recent subprime mortagage news leaving many seeking solid ground, some are pointing to credit unions as a "haven." But don't take my word for it.

In Friday's edition of the economics website thestreet.com, reporter Nat Worden said "Credit Unions a Haven in Mortgage Storm."

For those pondering a new mortgage, a home-equity loan, a car loan or some other form of borrowing at an uncertain time like this, federal credit unions may offer a credible alternative.

And his reasoning...

Unlike other lenders that have now run into trouble with widespread defaults, credit unions hold the majority of the loans they make in their portfolio, rather than sell them off into the secondary market. This structure gives them a greater incentive to attract keep their members satisfied -- and solvent -- in the long term.

Glean more from his wisdom here.

The Situation Toon

Don't let the banker's tears fool you. The Credit Union Regulatory Improvements Act (CURIA, H.R. 1537) will put a smile on the face of 89 million hard working Americans. (CLICK TO ENLARGE)

Taxing credit unions would make economy worse, says publication

Credit unions provide a vital balance wheel for America's lending economy and can help soften the blow of a credit crunch. Ending their tax exemption is "almost sure to make things worse," said a columnist in the National Review Online Monday.

A senior fellow at the Competitive Enterprise Institute, discussed a Treasury Department report that includes a proposal to tax credit unions $19 billion over the next decade. He said that taxing credit unions would affect the economy. He writes:

Not only would the 90 million or so Americans who belong to credit unions end up paying this tax directly, but the tax would likely ripple through the economy, restricting already tight access to credit, and making just about everything a bit more expensive.

Wow! That would take a bite from my wallet! Read the entire column here.

Biz Journal: 'Banks chase wealth, credit unions follow mission'

Though bankers claim that credit unions have left their mission "people helping people" behind, the Aug. 13, 2007 edition of the Hartford Business Journal reported that isn't the case. According to data compiled by the Journal credit unions are more likely than banks to open branches in areas where people have middle to moderate income levels. Too bad this little story gem is by subscription only!

A major motion picture: The Story of the Little Guy

This three and a half minute video chronicles the Little Guy's quest for a small business loan. Is he successful? Watch the this epic tale to find out.

Bank breaks $3 ATM fee barrier

As a college student preparing for a night out, I typically would visit the automated teller machine (ATM) and withdrawal $5 from my account. Back then it was free, as financial institutions enticed customers to the world of labor-less banking. Times have changed, indeed.

Bank of America said it is hiking ATM fees to $3 in most U.S. markets. The $1 hike in fees went into effect July 31 for most of the country, and will take effect Aug. 31 in markets in Illinois, New Mexico, New York, Nevada and Massachusetts, reports the San Francisco Business Times.

The fee will not be charged to BoA customers, who do not have to pay to use BoA ATMs. Also, the increase will not be charged at the 6,300 off-site ATM locations such as airports, colleges, convenience stores and malls. At these locations, non-customers will continue to pay a $2 surcharge.

Two years ago, BoA had its last surcharge increase going from $1 and $1.50 to $2 in some markets. The current industry surcharge average is $1.64, according to Bankrate.com.

Ouch!

Statistics from the Credit Union National Association indicate that the average amount of non-member surcharge on owned or leased ATMs ranged from $1.25 to $1.59, depending on credit union asset size.

MSN Money says, 'Ditch your bank for a credit union'

If you're sick of getting hit with fees, earning poor interest rates and being treated like a "nuisance" by your bank, according to MSN Money columnist Liz Pulliam Weston, it's time to leave and join a credit union.

As part of her story, she highlights the differences between banks and credit unions--an excellent indicator of why I love mine so much. But then Liz pulls out the "H" word:

Banks hate--hate--credit unions. President Franklin D. Roosevelt signed the Federal Credit Union Act into law in 1934 to "promote thrift and thwart usury," and banks have pretty much been gunning for them ever since.

It's a good read. Check out her advice here.

The Situation Toon

The Buttons

Reps. Paul Kanjorski (D-PA) and Ed Royce (R-CA) have introduced the Credit Union Regulatory Improvement Act (CURIA). This bill provides credit unions with more flexibility to do what we do best—provide high-quality, low-cost services to members, especially those in underserved communities. However, profit-hungry banks are lobbying against CURIA. We’re asking members of Congress to stand behind the Little Guy on this bill. Please click on the Key Issues section to get the full details on this and other legislation that impacts the more than 89 million credit union members nationwide.

There is a 100% chance that banks will be showering memnbers of Congress with blather and bantering...

PEOPLE vs. PROFIT QUIZ
Find out if you really know the differences between credit unions and banks. more...