Conference 7.286::dcu

    Somehow, I find it hard to disconnect the newly announced Checking
    Account Fees and the recient losses incurred by DCU as a result of
    improper loans or loans made with minimal oversight controls by the
    Board of Directors.  I have been a member of DCU since it's initial
    startup.  The concept that was sold to the Digital Board of Directors,
    was that this would be a Credit Union that would benefit Digital
    employees.  This, as history would validate, never materialized.  DCU
    has swiftly migrated from a Digital Employees Federal Credit Union, to
    a "FOR PROFIT" financial institution, that is non-responsive to it's
    customers.  The Attorney General of the Commonwealth of Massachusetts
    has a Consumer Protection Division that investigate and shut-down
    companies that use "Bait-and-Switch" tactics.  Several times, DCU has
    promised "no-fee" programs; VISA, Checking, etc., then after people
    sign-up for these services, they change strategies and attempt to tell
    you just how wonderful the new service will be.  There may not be
    anywhere that free checking is available; but I think I would rather
    have my direct deposit going to a place where I am not consistantly
    promised a service and then have it withdrawn.  Maybe it would be in
    the best interest of Digital Employees, to have the word "Employees"
    removed from the DCU Name; then they could be just what they are;
    another run of the mill financial institution that is non-responsive to
    it's customer base.
    
    Jay

   I spoke  to  a  representative on the phone, but by entering a note here
   I'll  be  sure  that  somebody high up in DCU will get this feedback.

   First, I  don't  think  it's  really fair for the DCU phone operators to
   have  to  deal  with  all  the  irate  DCU customers.  I think the upper
   managers  should  answer  the  phones  now  and  then and get unfiltered
   customer  disgust.   They  made the decisions, they should hear at least
   some of the complaints directly.

   In the last 6 months or so, I've felt like I've had to pull teeth to get
   any  kind  of  honest  statement  from DCU.  First there was the paymate
   fiasco  where many payments were lost (mine among them).  Then there was
   the DCU prez and his "questionable" loans.  And now, the "opportunity to
   be charged" for our accounts.

   I can  understand  people making mistakes.  I'd be far more tolerant and
   understanding  if  you  would  admit  a mistake in a straight and honest
   manner,  and  put  forth  what  you  are  doing to make sure the mistake
   doesn't happen again.

   Instead, I  feel  that you have regularly insulted our intelligence with
   sandbagging,  and slick, content free, or deceptive campaigns.  Who came
   up  with  this  outrageous  campaign to try to convince us that this new
   approach was to our benefit? I sure hope you didn't pay real money for a
   professional ad agency for this.

   To you,  your  image  is  more important than the truth.  I'd have a lot
   more  respect  for DCU if you came out and said, gee, I'm sorry, but due
   to the following reasons (give some straight figures here), we've had to
   implement  user  fees and here are your choices...  In fact, I'd be more
   likely  to  leave  my  money  in  there if I knew I were dealing with an
   establishment  that was willing to be up front.  That would be something
   we couldn't get with banks elsewhere.

    
    
    I believe that the new checking account policies are ludicrous and
    uncompetive especially for an institution that claims to be an 
    "employee's credit union.
    
    I feel that the way the announcement of the new policies was handled
    was extremely poor.
    
    A local bank offers me FREE checking WITH INTEREST.
    
    I'm taking my accounts out of DCU unless these new policies are
    revoked.
    
    
     Kristen McEvoy

    	Dear DCU --

    	I have been a member of DCU for nearly 8 years.  I have always 
	turned to you first for my banking needs.  I have a checking 
	account, savings account, personal line of credit, and have had 
	various loans and CDs through you.  In addition my wife has a 
	savings and checking account, and an RSVP account.  On top of that 
	I have five other dependent accounts, all with savings accounts, 
	four with RSVP accounts, and the last with a checking account.

    	I have been following the DCU notes conference since 1987, and
    	have to admit that I have sometimes taken heat for defending
    	the policies and actions of the DCU.  It is common knowledge
    	that the DCU notes conference has been a place to go to
    	complain about individual problems, but I would often publicly
    	dismiss them as being problems on the part of the complainer,
    	or as situations endemic to your industry.

    	I am sorry to say that I cannot take that position today on the
    	issue of the new "choices" we are being offered for checking
    	services.  I truly believe that DCU is making several mistakes
    	in instituting this policy change:

	o	DCU already limits, by charter, its potential pool of 
		accounts.  To attract customers from that limited pool, 
		DCU must offer something different, attractive, and 
		valuable to those customers.  For many of us, it is
		free checking.  DCU will lose its edge in the minds of 
		many customers with this most recent policy.

	o	DCU gives itself the appearance of being deceptive with 
		both the short notice for these changes and with the 
		insulting illusion of "choices."

	o	By instituting this new policy so hastily and so near to 
		the recent Richard Mangone firing, DCU gives the appearance 
		of being severely hurt by the circumstances surrounding that 
		firing.  People may not be willing to finance through new 
		fees the assets lost in that scandal.  Whether or not these 
		new fees are intended to cover those losses, the public's 
		impression and interpretation of the relationship of these
		events are a reality, and a false impression will impact 
		DCU just as strongly as true one.

	I will start searching today for another institution that will give
	me free checking.  When I find that institution, not only will my
	direct deposit be redirected there, but also I will have all my 
    	dependents' accounts transferred there.  

	I'm sure you have considered that you will lose some business by
	instituting this new policy, but I suspect you will find that you
	have underestimated the impact this will ultimately have.

	Sincerely,

	Joseph M. Oppelt  account# 147844
	DTN 592-4560

    
    I'm disappointed that DCU feels the need to impose a fee on its
    checking accounts. One can debate the relative merit of doing so
    against cutting less desirable services, but it is certainly a
    reasonable option.
    
    What is *not* reasonable, what is *absolutely intolerable*, is the way
    DCU tried to sneak in this change, giving virtually no notice and
    lamely attempting to disguise it as an "opportunity."
    
    Based solely on the dishonesty of DCU in this matter, I an seriously
    considering taking my banking business elsewhere. I will certainly
    do so if the proposed fees are not revoked.
    
    Bill Kilgore
    

    
    
    Prior to DCU, I belonged to Worker's Credit Union of Fitsburg.  When
    DCU was started, Digital Employees lost the convience of WCU.  Would
    you believe they accually sent representatives to each location?
    I miss them.  I wish I could say the same for DCU when I switch banks.
    
    You should really examine why loans are down.  You would not give me
    a mortgage.  Heritage Credit Union trusted me, They hold my mortgage,
    they earn money off me.  I joined DCU when it first started.  When I
    needed my house mortgage, I didn't even have a dime deposited in 
    Heritage.
    
    You didn't even give us 30 days notice on this change.  But at least
    you told us, when you no longer paid interest on the check account
    [balances less than 1000], you didn't bother saying a word.
    
    I *tried* running for the BOD.  You have procedures set up so that
    those you don't want on the BOD have NO chance of making it.
    Your hand picked nominating commettee hand picks people like yourselves
    and ignors the wishes of all the employees.  And the write in
    procedures make it impossible for a write in candidate to win.
    
    The BOD does not communicate with employees.  I feel they are really
    out of touch with our wishes.  I don't feel we want this continued
    increases in services.  We need to get back to the basics and
    be competative. with banks that make a profit.  We do not need to 
    accumulate excess in funds that promote the idea that they should be 
    invested in risky venters.
    
    Lastly, the way these fees were communicated to me is an insult to
    me.  Did you really believe that you could push these fees out and have
    people cheering for you?
    
    Ed Badger
    

    Dear DCU,
    
    I have also been a member as many from Worker' Credit Union to DCU
    when it originally openned and feel it is becoming no longer an
    "Employees" credit union but just another bank.
    
    Given what has been happening over the past several years the credit
    union no longer seems to be accountable to the membership but rather
    itself.  When you begin to forget the membership who are also your
    customers you are really missing an important factor. 
    
    This most recent outragious campaign of checking fees published as
    a benefit is one of the last acts of self distruction.  It is percieved
    by me as dishonest and underhanded for an institution to think it
    can continue with this practice.  I wanted to just add a quick response
    to this open letter to DCU with more to follow.  I do not normally
    respond it such haste but if this policy of checking fees are not
    revoked and DCU does not begin to act like a true employees' credit
    union you will have three less members in the union.
    
    Regards,
    
    L. E. Cornell
    

    
    
    to whomever reads this...

    It's no longer in my financial interest to continue banking with
    DCU.  Unless the planned fee increases are canceled, I will be
    moving my accounts out of DCU. The past advantages of DCU (free
    checking, lower interest rates) are gone and the recent increase
    in fees has made DCU less competitive than a full service bank. 
    Other events, such as:

    	- giving members less than a months notice about major policy	 
    	  changes

    	- attempting to package the rate increase as a feature

    	- offering frivolous services as a substitute for free basic
    	  services

    	- investing large sums of money as poorly as any Savings and
    	  Loan

    give me little reason to believe that DCU services and credibility
    will improve in the future.

    I'm sure you anticipated a response similar to the one you are
    receiving.  You're probably hoping that outcry will soon pass and
    in the end, the money you make on fee increases will make up for
    the loss created by the members who leave.  For the sake of
    members that remain, I hope you're right.

    	Jim Stenoish

To:  DCU

Re:  New checking-account fee structure "choices"


Dear DCU,

I have today withdrawn all but $10 from each of my DCU checking and savings
accounts.

In the happy event that DCU reconsiders and elects to continue offering savings
and checking as it has since the days when I joined (what was then called) WCU,
I shall be pleased to re-deposit my money and offer you my thanks.

-Bill Sconce

Just to let you all know;
    A special extraction containing the stripped topic replies since the
    last regular extraction and note 255.8 (inclusive) was forwarded to
    DCU. (See note 2.0 for normal extraction information).
    
Carl Leeber
Batched Notes Extractor

P.S. I'm going back on vacation for two weeks so I will be unable to
forward to DCU until I return 26-AUG-1991.

    
    
    	When my last bank was bought out by a larger company and
    	started to charge me for everything I did, I decided it
    	was high time I get myself to a bank that works *for me*
    	rather than the other way around.
    
    	I came to the DCU because of convenience and the ability
    	to have FREE checking.  I was actually able to balance
    	my statements each month without wondering whether I had
    	a service charge or not.  
    
    	Now I'm going to be "allowed" to NOT get interest AND I'm	
    	going to be charged on TOP of that.  This charge isn't
    	applied to my main checking account, it's applied to EACH
    	of my checking accounts (of which I have three).  
    
    	I've toyed with the idea of putting all three accounts
    	together into one.  So goes my own independent checking
    	account and I STILL wouldn't have enough in there to 
    	enable me to get free checking AND interest.  In my eyes,
    	I lose both ways.
    
    	I had every intention of using the DCU for CDs, loans, 
    	mortgages, etc. when the need arose.  However, now I
    	think I'll deal with a little inconvenience and save myself
    	some money by finding a bank that works for me and isn't
    	out to make a buck on it's "owners"
    
    	/Kim Gallant

(I'm a new member to this conference, after hearing about the rate increase
being imposed next month. I'm not normally a real vocal person, but I felt
compelled to respond to this issue. Here's a copy of the letter I just 
sent to the DCU Board of Directors.  - alan)


							August 13, 1991

To the DCU Board Of Directors, 


I'm sure you're probably getting a lot of mail these past few days, relating
to the imminent hike in DCU service charges. I hope you don't mind reading 
one more on the subject, although it wouldn't surprise me if a lot of it is 
somewhat repetitious from other letters you're getting.

I have been a member of DCU since shortly after I joined Digital 3 years ago.
I don't have a ton of money in my accounts, nor am I likely to in the near
future. Then again, its people like me that are getting hurt the most, so
maybe its more appropriate to hear complaints from me than from some of the
big money depositors.

I should note that I have been very satisfied with the DCU before this point.
The service reps at all levels have been friendly and courteous. I've never
had any problems with the many deposits, withdrawals, and transfers I've
done in the past. I applied for a mortgage loan with you this past winter,
and just six weeks ago took out a car loan. At all times, everyone has been
efficient, professional, and a pleasure to work with.

However, with the new policies, I do have some complaints.

First, as I'm sure its been made clear to you, the manner of announcing the
new rates (as a "choice") was a bit insulting, and I hope you realize the 
marketing error that was made there. Not a big deal though, I got the same
message no matter how it was worded, and I can ignore the hype easy enough.

Basically, I wanted to point out that, in your eyes, you (DCU) seem to be 
justifying your actions by saying "shop around" (this information comes 
second-hand, through quotes posted in the DCU notesfile). You seem to
feel that you still have competitive rates compared to other banks, and
that justifies the action.

However, the problem is that you don't have the services that other banks 
provide. Most important to me:

	o Open nights and weekends for more convenient banking
	o Free use of ATM machines throughout New England ($1 a pop gets
	  real expensive, real quick!)
	o Returning canceled checks
	o Good interest rates (in all cases of my calling around, no one
	  was lower, and quite a few offered higher interest rates on
	  both savings and checking)

I was willing to forgo most of the above conveniences in exchange for the
free checking account that the DCU offered. But with the initiation of the
charges (and the extravagantly high minimums required to avoid them), I
now feel its makes sense to do my banking elsewhere.

I hope there is enough of an outcry to modify the new policies before they
take effect. However, being a realist, I imagine that the most of the 
members will just accept them. All I can do is hope that you take my 
message as one that (I feel) reflects the majority, even if they don't also 
voice their opinions as vocally as I have here, and will reconsider 
these actions.

Regards,
Alan Starr
DCU Account #______

QRYCHE::STARR
dtn 289-1817
Andover, MA (APO)

    	As an eighteen year Decie, I have been a staunch supporter of DCU
    even when I disagreed with some of the policies and lower than market
    interest rates/higher Visa etc. I will not add verbage to the rhetoric
    which has preceeded me, since it would be repetitive. I have however
    taken the following action:
    
    	I have signed authorization to transfer all IRA funds to another
    	institution.
    
    	I am in the process of evaluating other institutions and have
    already discovered two in the Worcester Mass area that appear to be
    better in all/most areas.
    
    	If there is no evidence of reconsideration, I will remove all my
    funds prior to the September 1 deadline.
    
    I do this with deep regret. My relationship with DCU and it's people
    have been great, but I cannot and will not support this recent action.
    
    Other ramifications include:
    	Negative effect on the Digital program to increase the % of Direct
    Payroll deposit.
    
    	Negative effect on the program to move Petty cash funds
    electronically.
    
    I urge the BOD to make a statement ASAp to the DCU members and the
    populace as a whole who MIGHT have been considering DCU as their
    banking agent.
    
    Regretfully============SANFORD=============

Digital Credit Union BoD,
   This is to inform you that because of your latest actions regarding imposing
fees for checking accounts I will be closing my DCU checking account as 
soon as my new Dirext Deposit form clears. I would also be closing my savings
account, but I must keep a $5 minimum in it until I pay off my stock loan. I
will try to do that within the next few weeks. In the meantime I'll remove all
but the $5. I may just keep the savings account active with the $5 so I can
vote in the next election.
   Your actions in imposing a monthly fee were the final straw thet caused
me to leave, This has been building for a while. First it was your slowly
but staedily raising the VISA interest rate. Then the $1000 minimum checking
balance for interest payment. Which you did without notice. Then your closing
of branches during lunch. 
   What really annoys me is spending MY money for the slick brochure you sent
out with the latest statements. This thing is an insult. You must really think
the membership is foolish to think paying for something I can get for free makes
sense.
   I called Mary Madden's office and was told if I didn't like the new policy
I could "shop around". Well, I did. There were 2 ads in my local paper for
'Free Checking' last week. So I took 'option 3', the one you didn't mention
in your brochure, I left.
                                     A disatisfied member,
                                      Dennis C. Rieu  
                                       Account# 27183

    If DCU does in fact impose monthly checking account fees, I will
    cancell my account immediatley...and look fo another bank. There are
    many Banks/Credit Unions that offer FREE checking for direct
    Depositors.

    Perhaps a constructive suggestion may help.  To make the new "choices"
    truly palatable and competitive, suggest that no-fee checking be offered
    to members if:
    
    1.  Direct deduction of more than $100 per week to checking, OR
                                                                 --
    2.  Balance equal to or exceeding $1000, OR
                                             --
    3.  CD deposit of $2500 or more.
    
    This simple change to OR instead of AND would make the new choices
    much more competitive (at least in New England).  It would seem to me
    that the weekly infusion of $100 to a checking account would meet the
    objective of weeding out inactive or multiple accounts.

    Dear DCU:
    
    I've been a "member" (customer) since 1983.  Over the years, I've been
    generally satisfied with the level of service I've received from you,
    and in fact have been one of your staunchest supporters.
    
    I can understand that your institution (I'd say "our" institution, but
    it's clear that I have little or no say in its operation) has fallen on
    hard times, and I'd be nominally willing to help you ride it out.  With
    that in mind, had you come to me and said:
    
    "We're having problems.  Effective xx/xx/91, we're hitting you with the
    following service charges."  I'd be happy.  Even without having to
    admit to problems, if you'd said "Effective xx/xx/91, we're hitting you
    with the following service charges", I'd have grumbled a bit and
    probably stayed with you.
    
    What I find instead is a glossy brochure, produced at non-null expense,
    telling me that I have all sorts of new "options", all of which
    accessible to me are those that will cost me money.  I do not like
    being told that someone's doing me a favor by taking my money.  I
    further do not much care for the assumption that sugar coating the
    words like this would somehow cause me to fail to notice what's really
    happening.
    
    Therefore my question is this:  What possible purpose did you (DCU)
    hope to achieve by treating me like an idiot?  This was clearly a
    premeditated action on your part (as evidenced by the slick and
    insulting brochure), so exactly what was the goal here?
    
    If your goal has been to insult and anger one of your happiest
    customers, then you've achieved it quite nicely.  I can only hope to do
    so well with my goals in life.
    
    							Dawn R. Banks

    As a shareholder I am disappointed in the current attitude of
    my Credit Union. The brochure and announcement in my statement
    is insulting and I do not intend to pay these fees.
    
    I am currently looking elsewhere (as suggested by Ms. Madden) for
    another direct deposit bank.
    
    I didn't steal $70M and I don't plan to pay it back for the one 
    that did!
    
    Janet
    

    
    I am presently investigating other banking/checking options.
    DCU has been my ONLY banking choice since 1982.  The "choice"
    brochure alone has ticked me off enough to do this let alone
    the $2 fee.  You will lose my business faster by treating me
    with arrogance than by costing me money and you've managed to
    do both!
    
    You already get $372 a week direct deposited to DCU for checking,
    loan escrow, vacation club, U-name-it, Christmas club, etc.  That
    is nearly $20,000 of my money flowing through your hands yearly.
    On any given day throughout the year with the various accounts
    considered I have a couple of thousand or more on deposit.
    
    I agree with a lot of what has been said in this file.  I live in
    southern New Hamspshire.  If I find a better deal, and with all
    indications it shouldn't be hard to, I am gone.
    
    Steve
    

                                                               16-Aug-191
    
   To whom it may concern,

  
   As you all know by now the DCU has informed us that our checking accounts
   will be taking on a new twist, LifeStyle checking.  A checking account that
   is designed to give us flexibility and unlimited access to our funds. 

   The DCU boasts that the "LifeStyle" checking has "More Choices" and will
   present "More Options".  They go ahead and quote Henry Ford, "You can choose
   any color you want, as long as it is black."  Then you open the pamphlet and
   you are astonished.  You think to yourself, is there more than this or do 
   they take me for a total idiot.  That was my impression of this "New" 
   checking not offered but rather thrown upon us by the DCU.

   What the people at DCU are trying to tell us in their quaint little way is,
   they will be charging us a fee for our once "FREE" checking.  I find it 
   quite comical the way they went about this.  Making it sound like we are 
   getting outstanding benefits with this "New" checking account.  When all 
   that we are getting is raked over the coals.

   Remember back a few months when the DCU sent out the real reasons why the
   President of their establishment was fired.  Well to refresh your memory,
   he single-handedly stole *70,000,000.00 or so dollars right out from under
   our noses.  Now it's time to recover the money by passing the collection
   tray to the members. 

   I don't agree with the increase although I don't feel the DCU will change
   that.......but, I am appalled at the way it is being handled.  Again the 
   "poor" are taxed and the "rich" are getting the full benefit of the 
   thievery rained upon us. 

   Speaking for myself, a balance of 1,000 dollars at "all" times is not an
   easy task.  Especially considering the economy and the hard times Digital
   is facing within. 

   It is sad to say that politics are so rampant throughout our society that
   even our financial institution isn't autonomous from its graft.  It's also 
   not enough to have to put up with this type of rhetoric in the press but 
   now the DCU puts out a pamphlet that is totally ludicrous.  It is an utter
   insult to our intelligence and financial well being. 

   If the DCU really gave us a choice, I would choose black.....


    * I've been quoted many different $$$ ranges. Why doesn't the DCU give
      us the REAL numbers. Let's stop all the speculation !!!
                              
                              Stephen B. Neff
                              APO-1/C3
                              DTN : 289-1259
                              DISCVR::NEFF


_sbn

    
    Having joined Digital as my place of work in 1981, the two things I did
    on my first day here was sign health forms and open up my $5.00 account
    with DCU.  We were promised a branch at our location in New York City
    back then.  This eventually came to fruition last year.  What a great
    day, the credit union was on my floor, not more than 100 yards from my
    cube!!!  What better convenience could I possibly want???
    
    The premise of DCU is great - an institution devoted to its members! 
    An non-profit instution who gives back the profits in the form of
    interest at the end of the year.  
    
    As time went on I availed myself of a multitude of DCU's services,
    including: checking, savings, Visa, RSVP, Xmas, CD's.  
    
    Then the changes began to occur.  Charging for the Visa account,
    increasing the interest percentage (nice to start off with that
    artifically low rate of 10.9%!), no interest for checking accounts
    under a certain amount, etc.  
    
    Now the ultimate insult, charging checking fees under the guise of
    increasing DCU's benefit package!!!  Given the present situation, and
    given the fact that I can walk out of this building and walk to at 
    least 10 banking instituions not more than a 1/2 block away, I will 
    certainly be checking their service packages today.  
    
    I plan to close out my checking account immediately and will not reopen
    it until you reverse this uncalled for change in policy.  Just because
    the old president of DCU acted irresponsibly doesn't mean that the
    shareholders have to bear the brunt of the BOD's lack of controls.
    
    Regards from a now dissatisfied client,
    
    Fredda Turnof 

 








                                             Mark Buda
                                             6 Patten Road
                                             Merrimack, NH
                                             August 16, 1991


          Digital Federal Employees' Credit Union
          Communications Department
          Attention: Mary Madden PK05
          141 Parker Street
          Maynard, MA 01754

          SUBJECT:Objection to the new schedule of fees

          Dear Mrs. Madden:

          In reading about the new few schedule DCU has chosen to
          impose on its owners, I was shocked, to say the least.
          After thinking about it, I became angry, as DCU is
          supposed to serve its owners, not shaft them.

          DCU has been increasing fees for the last couple years,
          quite regularly. While USAA dropped their interest
          rate on their VISA credit card recently, DCU increased
          theirs. In doing so, there are 3 banks, in New Hamp-
          shire, who have cheaper credit cards and many more are
          roughly the same. If you are having less defaulting
          than the normal bank, WHY?

          You raised the CRT interest rate to new levels, while
          interest rates were dropping. I called and talked about
          this and was never given a reason that made any sense.
          It seems that it was chosen as an arbitrary account to
          increase. I often wondered why the CRT and VISA rates
          were not the same. Do you know WHY?

 


                                                           Page 2



          You have also increased your minimum balances for
          interest bearing accounts from $500 to $1000. At the
          same time, you chose not to give the member their
          interest money every month, but instead chose to give
          it to them every 3 months. Most credit unions still
          give the interest money every month. WHY?

          You have chosen to hide behind the skirts of a federal
          law that said you must have a consistent manner for
          cashing and depositing checks. Instead of working for
          the members, you chose to have minimums of 1-3 days,
          up to 5 days, or more depending if the funds to be
          deposited were local or not. Local banks have chosen
          to use roughly the same time frames, but they want to
          MAKE money for their share holders and provide services
          to a less known customer base. You are non-profit,
          and choose what the banks use. Other credit unions put
          holds on checks for fewer days. WHY?

          I now turn around and see that you want to be a bank
          and start charging fees to have the privilege to have
          an account at DCU. $2 if the NET deposit of the pay-
          check is direct deposited. $4 if otherwise. If we are
          foolish enough to have been married and have 2 accounts
          with direct deposit, then chalk up another $4 bucks
          for DCU, not its members. As I read your declaration of
          excessive fees intent, I could not wonder if I might be
          charged $4 for having my wife direct deposit her check
          into my account. WHY?

          In closing, I would suggest that you examine your goals
          and who you serve. It is VERY evident that you are not
          serving the members any longer. I would be glad to talk
          to you by phone or in person and explain, as I have
          done in the past by phone, what it is really like, in
          the field.

 


                                                           Page 3



          If you would happen to have the urge to communicate
          with an owner, I can be reached at DTN 381-1969 or at
          home (603)424-0922. After September 31, 1991, I doubt
          that I will be an owner in longer. Time to get an up to
          date model...


                                             Regards



                                             Mark Buda

	Dear DCU Management and BoD,

	I wish to add my vote of no confidence to the many already 
	mentioned here.  I have initiated steps to remove most of my 
	funds as they become available.  I have initiated removal of 
	my Payroll deduction, canceled my VISA, and removed much of my 
	liquid funds.  I have shopped and am moving to a much 
	firmer ground.  I cannot afford delays in funds access if, 
	as it appears to me, you get shut down to re-organize by the 
	NCUA.  Your cavalier opinion of your fellow employees and 
	customers, daring them to find a better supplier of services
	when many are available, convinced me.  I have chosen my local 
	bank over my 'member-owned' DCU.  Is that what you hoped for?
	It is not what I desired, but until you improve your opinions 
	of us and provide sound, competative place to do business, I 
	will put my money elsewhere.

	David Atkinson
	166815

    Actually, you have left me only one choice. By the end of this week I
    will have cancelled all my accounts with DCU except to hold the minimum
    required amount in my Share Account so as to be eligible to particpate
    in the next BOD election.
    
    I could have accepted the fees, but not the manner in which they were
    introduced.
    
    Regretfully,
    
    Steven Murtagh
    
    PS: My wife, who is not a DEC employee and so not able to post here,
        will be taking similar action this week..
    

    re enough money in account to vote in next BOD election...
    
    That got me to thinking...how many elections do we need to go through
    to vote out all of the current board?
    
    Don

    
    RE: .25
    
    3 elections are required to turn the entire board.  3 are up for
    re-election this year, 2 the year after, 2 the year after that.
    
    Right now the board has 4 people on it that have been on it for a
    while.  The 3 up for re-election this year are it's "junior" members.
    

       If the special election happens they may all be gone after that.
                                 Denny

    21-Aug-1991
    
    
     
    
    Digital Federal Employees' Credit Union 
    Communications Department
    Attention: Mary Madden 
    PK05 - 141 Parker Street 
    Maynard, MA 01754
     
    Dear Ms. Madden,
    
    Please add me to the list of folks who are displeased with the recent
    changes made to the rate structure at DCU.  There are no longer any
    benefits to belonging to the DCU and I will be withdrawing my meager
    funds to move them to another institution.
    
    If this is what DCU intended - that those with lesser amounts withdraw
    their monies - then they have succeeded. 
    
    Perhaps DCU ought to change their name to something more commercial.  I
    don't like the name DIGITAL put in front of an institution that really
    does not exist for the benefit of this company's employees.  The DCU is
    a separate commercial entity, in business for profit only, and their
    motivation is not to serve and benefit the employees of Digital.
    
    Very truly yours,
    
    
    
    Marcia M. Landingham
    DIGITAL EQUIPMENT CORP., UPO1-5
    2 Mount Royal Avenue
    Marlboro, MA  01752-1996
    

    8/21/91
    
    To the DCU board:
    
    I was angry when I received the notice last week that the DCU would now
    be assessing fees on the "checking" accounts if DCU members did not
    meet the criteria for what the DCU considers a "good-customer" (i.e.
    specified minimum balance and minimum weekly direct deposit).  I was
    just going to complain to my friends and then move my account to
    another band and that would be the end of it.  I am pleased to say that 
    I am not the only one that feels this way...there are many of us, and 
    we DON'T like it and we ARE NOT going to sit still for it.
    
    As many employees do, I utilize the DCU solely for the purpose of the
    free checking and the convenience of the DCU being located right in my
    building (MRO4).  With the "free" leaving the checking, there is no
    longer an incentive to keep my DCU account.  I'm now in search of a
    bank, not a credit union (don't forget about Rhode Island !!!), to 
    handle my account. 
    
    We, the DCU members, do not understand *exactly* why you have taken such
    urgent action with such a short lead time to begin reaping the profits
    from the fees - but we can only wonder if this is tied to the problem
    with the past chairman....
    
    I guess the end result of this fiasco will be that many Digital
    employees will close-out their accounts; other employees will be
    discouraged from joining the credit union; remaining DCU members may
    choose to obtain certain banking services elsewhere (loans, credit
    cards, CDs, etc).  Is this REALLY what you want?  You do, afterall,
    have a limited market for potential members, how will the bottom line look
    then?
    
    I wish you luck straigtening this out.  I hope you have the courage
    to withdraw the proposed checking policies and make a serious effort to
    restore belief in the DCU once again.  From what I understand DCU
    members have tolerated other things in the past, but they won't any
    longer.
    
    - Sharon Foster
      Badge 303263
      MRO4
                             

    I was very upset when I read the brochure stating that DCU services
    would now cost $2/month.  I was concerned about the short lead time
    of the announcement as well as its placement in my statement as
    advertising (I don't always read advertising).  I believe that credit
    unions should not charge service fees.  It is very dangerous for
    a financial institution to engage in deceptive advertising.  If
    DCU management would send a separate statement (like the one announcing
    the reasons the president was fired) and explain that the brochure
    announcing the service changes was in poor taste and follow it up
    with an apology, member confidence might be restored.
    
    I had planned to make alternate banking arrangements but after reading
    other notes it's evident that DCU has the option of recinding the
    service charge position.  I would much rather have DCU continue
    to provide free checking that change my accounts to another
    institution.  I will wait through the month of September to see
    if the Board of Directors acts in good faith and reverses the service
    charge decision.
    
    Gwendolyn Grosjean (@WNP)
    

I am very much against the idea of a service charge/fee on my DCU checking 
account. 

MY VOTE = NO on FEES!

Fred Vaughn
Marlboro MA 

	Dear DCU representatives:


	I have read your official rebuttal concerning the new checking 
account fees and how these accounts are the most costly for DCU. I shall 
help you save money......

	         ...... by closing my account and doing business elsewhere.


						Mike Gilon


   P.S. Your sugar coated poison pill pamplet with the More Choices/More 
Options theme was unbelievable, simply unbelievable. 

    Dear DCU Representatives,
    
      I joined the DCU when I joined Digital 5 years ago.  I was working
    in the Greater Maynard Area at the time and enjoyed the convenience of
    DCU offices in the facilities where I worked and convenience of 
    free checking.
    
      I have held CDs at DCU and have taken out loans from DCU.  When I was
    visiting the DCU branches I was very happy with the courteous service
    of your representatives.
    
      Now I work on the West Coast.  The nearest branch office is in
    another time zone, and there are no DCU ATMs within 1000 miles.
    But, the convenience of free checking and direct deposit were incentive
    enough for my wife and me to maintain our accounts.
    
      A month or so ago I received word of financial impropriety by a major
    DCU officer.  These things occasionally happen, and I was willing to 
    assume that better oversight in the future would prevent such incidents
    from happening again.
    
      More recently I received a very insulting brochure from DCU stating
    that I have "new choices", and that the DCU is doing me a service by 
    implementing fees on my checking accounts.  As an additional insult I
    was given less than 30 days notice of this "new service".
    
      The DCU holds no benefit for me at this point.  To make matters
    worse,  it has insulted me and spent *my money* to do it.  I am
    immediately closing my checking account and my wife's checking and
    savings.  I will maintain the $5 minimum in my personal savings account
    until I have completed payment of my loan.  This $5 will also allow me 
    to express my displeasure with my vote at the next election of DCU officers.
    
      Formerly I opposed the arguments of the banks that Credit Unions
    should not be regulated any differently than banks.  I saw credit unions as
    something apart - an institution that dealt with its members/customers
    in a human and non-cynical way.  I am sad to see that I was wrong.
    
      I am saddened and angered by this recent action of the DCU.  If this
    is a plan toward eliminating the DCU altogether, it has been a wonderful 
    success.  If not, then it has been a serious mistake.
    
    Sincerely,
    
    David J. Wiegleb

    Dear DCU,
    
    I have heeded Mary Madden's good advice to shop around.  I have found
    many local insititutions which are much more competitive than DCU for
    the products and services I need and want, including net pay deposit to
    a primary account and internal automatic transfers to sub-accounts.  I 
    have inititated the process to transfer the bulk of my banking business 
    elsewhere.
    
    I would like to thank DCU management for the sound advice to shop
    around.  I'm glad I did.  The creeping non-competitiveness of the DCU 
    has finally outweighed the advantages of payroll deduction and offices
    in the workplace.  I cannot imagine why you would be encouraging
    members to shop around.  Based upon my experience, this is akin to
    holding yourself hostage, waiting to be rescued.  
    
    No one is coming.

	Dear DCU:

	Since my balance generally fluctuates between $10 and $1000, but
	rarely goes above $1000, I have opened up a "Passport I" checking 
	account with Nashua Federal Savings Bank.  At NFS, I get:

	  o Interest paid on my balance of $100 or more
	  o Unlimited check writing
	  o An ATM card (free use at NFS branches, only $.50 at any other)
	  o Saturday banking hours
	  o Checks returned monthly
	  o Interest paid monthly 

	The only item you can match is unlimited check writing.  With your
	new fee schedule and limited hours I am better off banking elsewhere.
	
	Jim Morgan, DCU member since June 1982.

	To whom it may concern:

	I came to work for DEC almost 5 years ago and opened my accounts
	(checking, savings and RSVP) at that time. However, my experiences
	with credit unions goes back to the time when I first started earning
	money. The reason I went with credit unions is their basic charter to 
	serve their membership. This credit union has failed in this regard.

	Count me among the multitudes that have been told if you don't like 
	the DCU, shop around. I have and have found two BANKS that beat the 
	DCU hands down. I haven't even begun to look at other credit unions.
	Once my research is done I will be moving all of my accounts out of 
	the DCU if the board continues it's blatant disregard of it's members. 

	Ms. Madden, if you truly are out there, can you answer a question?
	A credit union is built on it's members How does the DCU expect 
	to survive, let alone prosper, if it continues to drive away members?

	Chuck Freiwald
	Colorado Spring	

					August 29, 1991

					Joseph P. Rice
					PKO2/K64




Mary Madden
Digital Employee's Federal Credit Union



Dear Mary:

I am very disappointed at the institution of fees on checking 
accounts at the DCU. I realize that the fee is not exorbitant, 
and that most users will simply not go to the trouble of closing 
their accounts. 

Frankly, the no-charge checking was the only DCU feature that gave the
DCU any competitive edge over other institutions. The free checking has 
kept my account at DCU, even though I already have accounts at banks 
with a wider variety of options. Adding a charge, no matter how small,
provides the incentive is to move all business to other banks.

In light of the reduction in window services, transactions 
handled by ATMs, truncated drafts, and significant deposits via
automatic payroll deductions; most of your operations seem
to handled with little human intervention. 

To ask members to pay the same fees as a full service bank, and not
make up for it with convenience, and/or significantly better rates 
on deposits and loans is to me, a sign that the DCU is not responsive 
to the members.




				Sincerely,


				Joseph P. Rice


                                                 

        I sent this note directly to DCU BoD Chairman two weeks ago. It
        was marked with a read receipt, thus I know that Mark read the
        note that afternoon. To date I have recieved no reply.
        
                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     15-Aug-1991 09:43am CDT
                                        From:     Bob Kaplow
                                                  KAPLOW.BOB
                                        Dept:     SWS
                                        Tel No:   DTN 474-5416

TO:  Remote Addressee                     ( MARK STEINKRAUSS @MLO )


Subject: DCU "choices"

Mark; 

    I'm sending this directly to you because of the concern you
expressed after my last note of June 20th, regarding the Mangone
incident. 

    Monday I returned from vacation, and found a surprise in my
monthly DCU statement. I am now offered the choice of paying for
services that used to be free! I dislike these additional fees, but
the two things that really anger me are that it is being implemented
with extremely short notice, and that the DCU chooses to "market" to
its members by trying to disguise costs as features. What little
trust I had left in the DCU just vanished. 

    I joined DCU almost from the beginning, because my local bank
instituted service charges like the ones that DCU has now announced.
Since that time, I have seen the level of service provided by DCU
decrease, the costs of those services increase, interest rates are
no longer competitive, and customer satisfaction has fallen like a
rock. I have been led on for at least 5 years with the promise of a
local branch in the Chicago area, but those promises have never
materialized. I've been disenfranchised in two straight elections
for the DCU BoD. After the first of these incidents, I wrote to the
NCUA to request an investigation. 

    I am most concerned as to what this "choice" will do to the DCU.
Savings and deposits to the DCU are down. The last thing the DCU
needs to do in the current financial climate is to drive away a
large portion of its depositors. Yet that is exactly what it is
doing. It makes me wonder what the DCU management is thinking. It
does not make me want to stay around and see what is in store for us
next. 

    As a result of my decreasing satisfaction with DCU, two years
ago I moved over $20,000.00 to other institutions, who paid higher
rates, and were interested in serving me as opposed to serving
themselves. This note is to inform you that unless the new "choices"
are rescinded, I will take my remaining funds, and do exactly as
Mary Madden has directed me to: shop around and take my business
elsewhere. There are many financial institutions in the Chicago area
that want my business, don't feel the need to charge me for giving
them my business, and are more accessible and honest than the DCU. 

    			Bob Kaplow	
    		and 	Judy Kaplow	

        [account numbers withheld from notes]

To:  DCU

Re:  Continuing support for DCU


Dear DCU,

On 9 August I wrote to you:

     I have today withdrawn all but $10 from each of my DCU checking and
     savings accounts.

     In the happy event that DCU reconsiders and elects to continue offering
     savings and checking as it has since the days when I joined (what was
     then called) WCU, I shall be pleased to re-deposit my money and offer
     you my thanks.

Since DCU has reconsidered (by postponing consideration of the fees) I have
today brought my money back to DCU.  I offer you my thanks.

I remain alert to the fact that no promise has been made to not re-institute
the fees at a later date.  Against that unhappy prospect I have kept the
accounts at my commercial bank open until we see what happens at the special
meeting of DCU's membership.


Hopefully,

Bill Sconce

[I have been communicating privately with a DCU board member.  I just
sent the following message to summarize my frustrations with the lack
of action on the part of the Board.  This message does not identify
the board member I've talked with.  I would appreciate a response to
it from *any* board member or officer of the DCU, and will post here
any postable answer that I get.  Permission is granted to distribute
this message, with my name attached, to any member of the DCU, or to
write to me at RGB::Seiler to ask for further explanation if needed.]


Dear [Board Member],

...

I think we're having a basic disconnect.  Reading between the lines of
your messages to me and considering what I heard you say at the
meeting, it sounds like you don't think the board has done anything
wrong (or at least not since February) and that all of the fuss is
either due to misunderstandings or people who are deliberately causing
trouble.  Am I reading your opinion accurately?

If that isn't what you think, then there's a lot of things that I
don't understand, like why you feel badly about my now seeing the
BoD as a closed shop.  I see so many ways in which the  BoD as a
whole is *obviously* acting like a closed shop that I don't understand
how my saying it can make you feel badly -- the *conditions* that make
me feel that way should be what make you feel badly, and they should
make you speak out against some of the ways the BoD has been acting!

Here's a short list of some reasons to think the BoD is a closed shop:
initial refusal to let any member see the auditor's report;  continued
delays in letting any member have a copy of the auditor's report in
spite of months of requests;  no independent oversight of loans to BoD
members (I've explained this point in detail elsewhere);  BoD control
of the election process to the BoD;  BoD free to change any bylaw
without visibility or accountability to members;  BoD calling a
meeting to talk with members, then giving obvious doubletalk instead
of answers to the questions they knew would be asked (no BoD member
ever objected to the doubletalk some were giving);  BoD members
actively hostile to those who asked questions (the questions may not 
have been friendly but the askers have been getting a runaround for a
long time and the BoD should have taken account of that); and verbal
attacks on members by a lawyer who shouldn't even have been talking
(he's the DCU's lawyer, not the BoD's lawyer), and which were condoned
and encouraged by the chairman of the BoD.  Among other things.

I feel very badly about all of the above problems.  I feel that every
single thing on the list above is not just unreasonable, but is
intolerable.  I can well understand why those who have been trying to
work with the BoD on these problems for a long time have given up.  
...I think you should understand their feelings, instead of dismissing
them.  Further, as a person whom I believe highly values integrity and
openness, I think you should have the integrity to oppose these
actions on the part of some members of the BoD, and the openness to do
so publically.  I understand why it is hard to break ranks with your
fellow board members.  But silence is consent -- anyone who observes
members of their group doing wrong and says nothing cannot help but
share the responsibility.

Note that I'm not saying whether I think there should be checking
account fees -- that's a morass I don't care to enter.  I'm not even
raising the issue of whether the participation loans should have
been made.  I do think all members are owed an apology from Mr.
Steinkraus for saying that the DCU only invests conservatively (e.g.
in government securities) at a time that the participation loans were
going on.  Don't you see how justifiable people's suspicions are when
the chairman of the Board of Directors engages in what looks like
deliberate deception?  And I do think that, given all that's happened
as a result of trusting one DCU officer, ex-president Mangone, the 
Board should have patience with those members who wish to verify the
actions of other DCU officers and board members.

I guess the bottom line is this.  I went to that meeting because I
wanted to find out what was going on.  I found a few board members
who didn't engage in doubletalk -- such as you.  At that meeting and
since, I've heard you saying the right sorts of things about openness.
But I as yet have not seen you *do* anything about any of the problems.  

What can you do?  Send me a message (with explicit permission to
forward it) saying that you feel that members should be allowed to
have copies of the auditor's report.  Propose a method for oversight
of DCU loan and investment policy (including loans to board members)
that is independent of the board.  Propose bylaw changes to make the 
election process more open -- even if you think this point is just a
misunderstanding, surely you see that it is an important issue?
There are lots of other concrete things that you can do or support
that will convince people that you actively support making the BoD
more responsive to the members and more responsible to the members.

If you do this, I'll help -- I'll publicize your words to people I
know and make it clear that I think the problem isn't with the board
as a whole, but just with certain members.  I'll try to help arrange
constructive dialog about how to improve things, short of the extreme
measures that are being taken by those that have given up expecting
the DCU BoD to ever respond to requests that they think are completely
reasonable -- like giving members copies of the auditor's statement.
I personally cannot imagine a reputable company refusing that request.

If you do nothing but talk about the need to communicate, I don't know 
what you expect me to do to help the situation.  For that matter, I
don't know how you could expect me to think that you disagree with
the actions of the BoD that I find so intolerable.  At the meeting with 
the BoD, I picked you out as someone who seemed to stand for integrity 
in your personal dealings.  I hope I was right.  But surely you can see
that I have to see proof of this integrity, not just in your personal
dealings, but in your dealings as a member of the BoD.  And that means
more than just saying that things are under consideration.

Now that the petitions have been submitted for the special meeting,
presumably the meeting will be held.  But note that the meeting, even
if its instigators get everything they want, need not result in the
removal of the entire Board of Directors.  Instead, they are simply
asking for open elections.  I'm confident that any current director who
demonstrates openness and integrity will be re-elected.  I expect that
many current board members will be re-elected no matter what.  After
all, how many incumbents have *ever* lost re-election to the DCU BoD?
And besides, if the Board as a whole really proves itself to be open
and responsive, then I don't think the special meeting will succeed.
There isn't much time left to prove this.  You can be the beginning.
Talk and requests for compromise are pointless.  Quick action is needed.

Hoping that you will take these comments in the constructive spirit in
which they are intended, and then prove your integrity and openness
by your public actions, I remain,

	Yours sincerely,
	Larry Seiler
	HLO2-1/J11

 






               Dear DCU,

               I have been observing and evaluating DCU's actions for
               sometime now and have made these observations:


               o  It appears that DCU financial problems have been
                  smoothed over.

               o  DCU has engaged in prevarication concerning the
                  Richard Mangone situation and the BOD's culpability.

               o  Attempts by members to find out what is going on have
                  been stonewalled.

               o  New and increased charges have not been presented in
                  an honest way.

               o  DCU has dealt with its members in a decidedly un-
                  expected manner given that it is an EMPLOYEE OWNED
                  operation.

               These observations cause me to be VERY concerned.

               I had been moving my finances to DCU because it is em-
               ployee owned, it is convenient, we are able to help each
               other and I really like the DCU people that I have had
               dealings with. That I am not out for maximum profits is
               obvious because DCU lost that decision long ago.

               In view of the trouble (delays) that people can experi-
               ence in getting access to their money when a bank goes
               under, even though it was insured, I have come to the
               conclusion that it is just not safe to have DCU as the
               primary custodian of my resources. It also is not safe
               to continue to have my pay automatically deposited into
               DCU given its demonstrated unpredictability. I am truly
               sorry that things have turned out this way.

                                                  Sincerely,

                                                  David Brown

    
    Prevaricate -- To stray from or evade the truth; equivocate.
    
    RE: .41
    
    Very well stated!  I hope you also take a moment or two to forward your
    thoughts to the NCUA.
    

        re: .38
        
        5 weeks after my note I got a call from Mary Madden. After a week
        of playing phone tag, we finally spoke. She was "thrilled" to tell
        me that the fees had been eliminated, I mean delayed. I was
        thrilled to tell her that I had collected 70 petitions from the
        field to remove the BoD anyway! 

    I finally received an answer to my letter (.22) that I sent to DCU my
    pony express.
    
    It was a canned letter saying they were enclosing a copy of the
    newsletter that we receive in our monthly statements.  It referred to
    the Q&A with BOD and Chuck as a response to my letter.
    
    It never attepmted to answer ANY question.  Since I had already
    received the newsletter from DCU, and the letter said nothing and
    answered none of my questions, I wondered why they sent it?  It was a
    waste of money a good 2 months late...
    
    	- mark

re: .44

yep, I got one of the canned responses yesterday. An extremely feeble attempt
at communicating. I took the time and effort to try and express my concerns
in a positive and non-flaming manner, and get the brush off.

Actually, I guess it was a very powerful and effective communication after
all. It said loud and clear, "Mr. Kittell, we could care less about what
you think. You and your financial dealings are an insignificant drop in
the bucket of the mighty Bank of Digital. We'd just as soon you take your
business elsewhere and quit hassling us as though you are some kind of
shareholder."

Message received and understood.

    I got the same canned response yesterday.  I had sent a letter to the
    DCU two months ago to explain why I was turning in my DCU VISA cards. 
    The gist of the letter was that their means of communicating changes in
    terms was at best poor and at worst deceitful.
    
    Receiving a form letter and a glossy brochure that said absolutely
    nothing about the concerns I expressed in my letter said exactly the
    same to me as Rich's canned response (see .45) said to him.
    
    Over the last two months, I've been trying to give the BoD the benefit
    of the doubt.  My patience, however, is wearing thin.
    
    Sid