Credit Unions-Please don't market like this!

Here's another credit union I belong to, and something they did recently that has me totally puzzled.

This credit union sent out $8. checks to their members.  My son and I got these earlier in the week..  I knew better not to cash a check you aren't expecting to get until you read the fine print.  And sure enough: If you cash the check you are signing up automatically for a program that includes credit card alerts, companion airfare, hotel savings, rebates, and so forth.  It is run by something called Affinion Benefits Group.  If you cash the check, there is a $6 monthly fee for these services.    I'm honestly surprised a credit union would do something like this.  I talked to some co-workers about this and one of them had a daughter who had already cashed her check, not realizing she was signing up for something.

(In all fairness, I will say the credit union was quite upfront in the mailing about what would happen if you cashed the check.  But the envelope this came in looked like some kind of official communication, saying 'Check Enclosed' and, especially in January you are going to open any kind of financial communication thinking it might have something to do with your taxes.)

Why would a credit union do something like this?  Isn't a marketing tactic like this misleading?  I was not very happy about this.  I hope other credit unions aren't doing something like that.  Especially the credit union "Dear John in Afghanistan" of an earlier post belongs to.  I let his mother in law know right away about this.


Please, credit unions, don't act like the big banks!  Please remember you are "for the people".  It's great to make a profit, but not by making your members angry at you.

Credit Unions-for the People!

People who don't belong to credit unions don't know what they are missing.

What exactly is a credit union?  It is non-profit, first of all.  It exists to serve its members and its community, second of all.  You can save a lot of money by joining, third of all.

Many credit unions now allow you to belong by living, working or even worshiping in the community they serve.  It isn't like the old days when you had to hope your employer offered one.

One credit union I would love to join is Alternatives, in Ithaca.  I don't want to single any one credit union out, but their philosophy meshes with a lot of my beliefs.  Of course, if what Alternatives stands for turns you off, there are many credit unions out there with a more general philosophy:  service to their members.  And they do mean service. 

I belong to two credit unions.  Much of my business is with one of them, and I stay because the level of customer service is exemplary.

However......there is a certain amount of marketing going on with some credit unions, that I feel is not totally within the credit union philosophy.  My last post, and my next post, talk about that.

When Good Intentions Go Bad

I note once again I have belonged to credit unions for about 35 years; my Dad belonged to one for many years before that.  I believe strongly in the credit union concept.  This is why I am so disappointed.

A credit union I belong to, several months ago, started deducting $2. a month for identify theft coverage, from the basic "share account".  They did advise members of this but it's a negative option, in other words they started doing it unless you told them not to.   And if you do want it, you have to keep enough money in your basic share draft to cover this.  For example, if you have a small $25 share account and the rest of your money is in CD's, IRA's, checking, or whatever, this is going to run your small share draft account down pretty quick.  You must maintain this share account as a condition of membership so this isn't a small thing!    I suspect the poor employees there are going to be fielding all kind of complaint calls especially when their members' share accounts dwindle into nonexistance.  

When I complained they told me they had told people in a mailing this would happen- which was true, but again this should not have been a negative option.

My boss came to me the other day-he hadn't read the mailing.  He was mad as heck about all these $2. deductions he suddenly realized were happening and wanted to know if I belonged to that credit union, too.  Credit union #2...please rethink what you are doing.  I've always been so happy with you in my 24 years of membership, you've been such a help to me time and again...you've always been there for me....but please rethink any "negative option" items.  We are all adults here, we can read our mail and decide for ourselves if we want identify theft protection.  And take our lumps if we don't take the coverage and our identities are stolen. 


Thinking again about "Dear John in Afghanistan"...are their members in medical situations, caretaking situations, maybe even in the military...going to notice this happening, until their accounts are eaten up?


I applaud the credit union for caring that our identities were stolen...but couldn't have this been done a different way?

The moral of the story?  Always read your mail.  Especially if it is a financial institution.  Even a credit union.

Instead of Your Mega-Bank - Support Your Local Credit Union

While I do not normally indulge in political or financial controversy, I am supporting an effort among certain financial people to get more people to join their local credit unions

I support local sustainable agriculture, and credit unions run along some of the same principles.

Credit unions aren't perfect, and I am going to blog about that too...but first a blast from my past.

My family was considered "disadvantaged" growing up.  Sometimes there wasn't much between us and a square meal right before payday.

What saved us was my Dad's credit union.  Literally, I know on more than one occasion he borrowed money so we could pay bills.  No, I am not being melodramatic here.  The credit union trusted him-and he paid the money back.

I don't know what credit union it was.  But what I can tell you is, I've belonged to credit unions since 1976.  Back in those days there were no community charters so you had to join through a job or an association of some sort.  I would have been a member prior to 1976 if I could have been.

And, I still am.  In fact, I belong to two Binghamton area credit unions-one since 1986.

In future posts, I will explain more about what makes credit unions great-and a couple of recent practices that have me a little concerned.