Washington Post: Credit Unions Great for Promoting Thrift

A personal finance columnist for The Washington Post backed a new idea Sunday to launch a national thrift campaign and noted credit unions should be featured as an important tool to fight consumers' excessive reliance on credit.

Michelle Singletary, who writes "The Color of Money" column for the publication, noted a movement afoot by a coalition of consumer advocates, public policy groups and academics. They want to attack the country's dependence on debt by "creating a national campaign much like the one used to curb smoking."

The organizations mounting the effort include the Institute for American Values, the Institute for Advanced Studies in Culture, the New American Foundation, Public Agenda, the Consumer Federation of American and the National Federation of Community Development Credit Unions.

I agree with Michelle! Let's make it cool to save!

Poor Banks--Members Demand CU Small Biz Loans

Poor banks. They're having to fight credit unions who have the audacity to try to serve their members with small business loans. That's the tone of a tongue-in-cheek article written by the San Antonio market's top business columnist.

David Hendricks' article, "Man, credit unions have really got their nerve," appears in the San Antonio Express-News (Feb. 26). It notes that "those darn credit unions" are "at it again, trying to lure business away from banks."

He tells the story about credit unions responding to member demands for small business loans. And then the banks got selfish.

"That's when credit unions became alarming, and banks knew what to do. They hired lobbyists to make sure the credit unions didn't get too big for their britches. Congress set things straight in 1998 by limiting credit-union business loans to 12.25 percent of any credit union's assets."

Mr. Hendricks is one smart business columnist. Read the entire piece here.

Kansas Activist: 'Banks Try to Limit Choices'

Glenda Overstreet, an active volunteer in Topeka, Kansas, railed against bank efforts to limit financial choice in her state. She urged her fellow citizens to stand up for themselves.

Overstreet says she's not anti-bank, but notes anything that suppresses the consumer's right to choice is of deep concern.

"Don't get me wrong--I'm not against banks because I also use them. I'm against any effort that would restrict freedom of choice because I believe competition keeps companies focused on ensuring quality customer service."

She urges readers to contact state lawmakers to make their views known.

"Those whom I have visited with on this issue believe many banks, with the exception of a few, don't meet the needs of the community when it comes to providing financial alternatives for small-business loans, emergency personal loans or financial matters that help meet low-income or working poor challenges."

Read the entire post "Glenda Overstreet: Banks try to limit choices."

Miss America's Credit Union!

The tune, "There she is, Miss America..." replayed in my head for more than an hour after I read this follow-up story in the NY Daily News. (The worst part is those are the only lyrics I remember from when my parents and I watched Bert Parks croon yet another teary-eye beauty queen. I needed a strong shot of Linkin Park to rinse it away.)

Check it out: Former Miss America an East Harlem homeowner thanks to credit union.

Actors Have Their Own Credit Union

Since it's Oscars week, a story in today's New York Daily News is especially timely. Actors Federal Credit Union in New York City focuses on the needs of--you guessed it--actors.

The credit union's first mortgage borrower was "Law & Order" star Jerry Orbach, who died in 2004. When he got a loan for a West Side brownstone in 1967, he had a role in "The Fantasticks," which became the longest-running off-Broadway show ever.

One credit union loan officer named Paul Cole is a former actor. When making a home loan, Cole doesn't just consider a potential borrower's credit history. He really knows his members:

"When a would-be borrower's main source of income is a play, Cole checks ticket sales, reads reviews and tunes into industry buzz to assess its chances for a continued run."

The story explains why this credit union is so focused on these thespians:

Because it's a credit union, it's a nonprofit owned by its members. Deposits fund the mortgages. It keeps its $35 million mortgage portfolio, rather than reselling the loans to investors, the common practice which contributed to the subprime mortgage mess.

Cole also explains his prudent due-diligence in making mortgage loans:

"We are determined to make our members homeowners, but we're not a charity," he said. "We must also protect our assets."

Click here for the complete story. That's a wrap!

Credit Unions = People

A scene on Capitol Hill in Washington, D.C., during one cold February morning warms my heart.

People, like me, lined the sidewalks to let lawmakers know warm-blooded Americans embody credit unions. "Purpose" is the difference between credit unions and banks.

People drive credit unions. Profits drive banks.

Wall Street Journal: Credit Unions Offer Lifeline On Mortgages

"When it looked like Candido Rodrigues would lose his home, he was rescued by an unexpected source: a credit union."

That's the opening sentence of the a story which appeared in the Feb. 13 edition of the Wall Street Journal.

It's a story about how credit unions are helping Americans like me get unstuck from the subprime mortgage muck. After years of record profits, banks--and their investors--now are stinging from losses and reluctant to accept additional risk. "Credit unions to the rescue," exclaims the Journal:

"Unlike big lenders, credit unions didn't suffer heavy losses in recent months because they never made risky subprime loans.

The story says many credit unions continue to refinance subprime loans and offer banking products no longer available from other lenders, including five-year adjustable-rate mortgages. And why do credit unions do this?

"Credit unions," says Allen Fishbein, director of housing and credit policy for the Consumer Federation of America, "offer more personalized service" than banks, which "can make the difference between people getting approved and refinanced out of a loan."

Candido Rodrigues is one happy guy--like me! You can read more at the Wall Street Journal website.

If the Word Fits, Wear It

I consider myself a life-long learner--or at least a person trying to improve my brain which otherwise went unfilled during elementary school daydreams. (“Little Guy? Little Guy? Hello…Earth to Little Guy.”)

Merriam-Webster emails me each morning a new “word of the day.” It’s like learning the dictionary one-word-at-a-time. Today’s word struck a credit union tone:

collegium • \kuh-LEG-ee-um\ • noun

: a group in which each member has approximately equal power and authority

Example Sentence:
Each paper published by the journal has been approved by a collegium of scientists.

Credit unions are not-for-profit, democratically controlled cooperatives, where each member gets an equal say--no matter how much money he or she has in the place.

So if the word fits, wear it.

Report: Credit Unions Are a Financial Services Haven

I thought the term "sub-prime" was some type of U.S.D.A. meat rating. That is until we all started hearing about "exotic loans," "teaser rates," and "mortgage meltdown." Ugh.

Perhaps I was unaware because my credit union shielded me from such nonsense--that's the word on the street, anyway. That's thestreet.com, which says "Credit Unions Give Banks a Run for Their Money." To quote:

"Credit unions are somewhat of a financial services safe haven in today's volatile consumer loan market. They avoided much of the sub-prime debacle by not offering the types of exotic loans and teaser rates that were widely available at the time."

Is that conclusion any surprise? Shouldn't be--since credit unions are ultimately only responsible to their owners, who collectively (and cooperatively) own the place.

TheStreet.com also pointedly notes that's in opposition to banks--which are responsible only to their shareholders.

TheStreet.com, in the posting titled "Credit Unions Give Banks a Run for Their Money," also points out how many credit unions are developing "innovative products to attract customers."

Among them: Credit cards, which the posting quotes Linda Sherry of Consumer Action as saying:

"You should be able to expect fairer terms from your credit union because [it] is owned by its membership, not a profit making entity. Not all credit union credit-card contracts contain arbitration clauses, for instance, which leaves members free to settle disputes through the court system, rather in front of someone who works for a private group often chosen by the bank."

Check it on TheStreet.com ...

Who’s Looking Out for the Little Guy in ‘08?

Do your legislators have an eye on the Little Guy this election year? They should. The Little Guy represents the more than 90 million hard-working Americans who count on not-for-profit credit unions for affordable financial services. (Browse the blog to learn more.) If for-profit banks get their political way, credit unions' lower rates and fees will be history.

Call or email your legislators to remind them that if they want your support in '08, they should look out for the little guy by looking out for credit unions. Because we can't afford to live in the banks' greedy world.

Credit Union, Bank Difference on Magnet Board!

This little ditty is circulating on the Internets. It's from Young & Free--Common Wealth Credit Union in Canada. They apparently have a new under 25 spokesperson. Her name is Larissa.

Virginia Credit Unions Offer Payday Help

Wow...it's been awhile. Holidays. Work. School. Eeek. Time is money.

I came across this in the Washington Times newspaper. It spotlights how credit unions are picking up where payday lenders have left things a bit untidy:

"Mr. Noll's Langley Federal Credit Union is one of a growing number of credit unions, churches and nonprofit organizations that are providing low-cost cash advances as states, including Virginia, grapple with a growing payday loan industry and those left drowning in debt because of it."

And the reason behind the action:

"A credit union typically, almost always, will have the person's best interest in mind as opposed to making a profit off the person," Mr. Noll said. "We're a not-for-profit organization, and we truly exist to provide good service and act in the best interest of our membership."

Read the entire story here.

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.