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.