Conference 7.286::dcu

>    1. AutoNet - Oh boy! Another "valuable service" that my credit union is
>       using it's (our) profits to provide that I don't need and won't use.

In light of recent developments, how befitting for the DCU to go 
into the used car business...

-- Ron    

    What IS the reason for the two month dividend to Share 5 on the August
    statement?
    
    I'm asking here to save a flood of calls to DCU on Monday morning (and
    to take advantage of my three hour time zone difference)
    
    Jeff
    

    
    RE: 2 month dividend
    
    I would venture to guess that they did the 2 month calculation because
    of the changes to checking.  My impression is that their software is
    not very flexible so trying to perform 2 different calculations in the
    same 3 month interest period would difficult or impossible.
    
    RE: Autonet
    
    To misquote Ted Koppel, "You just don't get it, do you DCU?"  For all
    those waiting for DCU to change and steer this ship back to its credit
    union course, here is your answer.  Autonet.  More ridiculous services
    that "we" must keep asking for.  Alright, fess up!  Who asked for this
    service?  My bet is its the same person that asked for blender
    insurance.
    
    Everybody MUST realize that every one of these stupid little services
    requires DCU employees to administer them.  1 or 2 people in
    headquarters, not to mention to time of the people in the branches. 
    Now do you think all the current people will do all the work?  Probably
    not.  "Select option 3 for DCU employment."  And the beat goes on.
    

    Here's another slant on the dividends...
    
    It used to be that Credit Unions couldn't have "checking accounts".
    Instead, they were called Share Draft accounts and what you wrote were
    "Negotiable Orders of Withdrawal" (and were accepted as checks by
    nearly everyone).
    
    Is it possible that Credit Unions can now have real checking accounts?
    This would have required a change in the NCUA guidelines covering all
    Credit Unions. (Note, the word "Checking" appears in all of the
    literature now.  If so, please give me my old ShareDraft account back.)
    
    Re:  the auto-buying service:  First, how is this different in any way
    from the various Buying services that DEC already provides for us?  One
    is available in most localities.    Is this new "service" *costing* us
    anything?  That is, if zero members sign up, does the DCU have to pay? 
    Note that I've yet to buy a car for more than any buying service can
    get me.  Spend the $20 or so and get the Consumer's Report sheet on
    your vehicle and go in armed with that.  You'll usually do better than
    even the buying services do for you.  Of course, if you want a buyer
    for you, there are "one time buyers" that will locate vehicles for you
    and you don't have to pay an "annual" membership.
    
    What a crock.

  Yea and they aren't even as good as the AAA here which will help you find
buyers for your old car!

    I asked a teller about the premature dividends to share 5, she said
    that the accounts were being brought up to date ($-wise) before
    implementation of the new fees.
    
    Fred

re:  AutoNet

	Nope,  I guess they just DON'T GET IT.  This is ridiculous.  Here
	they are, slapping us with a  bunch  of  fees,  paying  us  lousy
	interest  on  our money, loaning money at lousy rates, making (in
	my opinion) risky investments in real estate, and now  they  give
	us a service we probably don't need.

	Hey  DCU...ever  hear  of  Mass Buying Power?  It's a FREE fringe
	benefit to Digital employees to help them get good deals on major
	purchases.   Including cars.  Additionally, how many places offer
	similar  services  to  this:   MBP,  AAA,  insurance   companies,
	AARP, etc. etc. etc.

	Geez, how much is this going to co$t us?

	What I think everyone wants:

		* No hassles, no frills, cheap checking
 
		* Reasonable interest rates on small savings

		* Competitive rates on larger savings instruments

		* Competitive rates on home mortgages and other loans

		* Timely and complete reporting of Financial Condition

		* A Board who is perceived as looking out for members

		* A few smiles and "thank yous" from their employees

		* No expensive "services" like those from banks

		* No "blender insurance" and other fee-raising 
		  enticements on plastic

	Is that asking too much?!?!?!?!?!?

Seriously Confused,
/Chris

    Re: .7:  Yes, there is Mass Buying Power, but somehow or other, I get
    the feeling that DCU members in Seattle Washington might not find that
    too useful.
    
    However, I'll bet you a dollar that DEC has some equivalent arrangement
    with an organization similar to MBP in nearly every area where a large
    concentration of DECcies can be found.
    
    This ought to make for some interesting discussions at tonight's
    meeting...  Too bad I can't be there.

        I know that we have a similar "deal" here in Chicago. If the DCU
        offer is just as good as the rest of these deals, then free is
        already paying too much for the service!
        
        Bob

Getting back to the topic...

	I for one have had this "early" dividend without notice cost me the $2.

	I had two, first time, large (for me), automated withdrawals scheduled
for late August/1-Sept. I had also written several checks (drafts?) in this
timeframe. I became very worried about the status of my account when I couldn't
get my idea of the balance to jive with DCU's balance. I wanted to make sure
I hadn't messed up the account and paid the $2 for a demand statement even 
though I would be getting one in the mail this week. I HAD to ensure that 
the automated withdrawal wasn't rejected because I had forgotten to record
a transaction.

	It turns out that the difference was my dividend which I had not
expected. Granted it was small, but it was unexpected enough to make me 
want to double check my status.

	I will be asking for my $2 to be refunded.

								Mark

    Got more information tonight about the new auto plan cost.  It
    basically cost about 6 PCs to do this program to track lease and
    purchase prices on different configurations.  The intent is to provide
    this type of service to help folks get the best prices on cars.  Then,
    this will hopefully entice them to finance through DCU rather than in
    the showroom.  The goal is to increase DCUs auto loans to members.
    Can't argue with that.
    
    The problem is that this program was introduced as Yet Another Service
    when what folks are looking for are really good deals on the basics:
    loans and savings.  They see this program, probably incorrectly, as
    another way that DCU wastes its resources by enlarging the set of
    services.  In reality, this is probably a good program and can
    potentially save shareholders some bucks at low cost to the DCU.
    
    In short, we are at the point where we look to DCU for barely
    competitive rates used to subsidize services we don't need.  This
    program may be good, but the timing and style of the announcement 
    was probably off.
    
    Steve 

    re .11:  That was how I viewed the new auto plan, as an incentive to
    get more people to borrow money from DCU.
    
    Some people are calling to do away with PayMate on the grounds of an
    increased service at increased cost.  As a user, I disagree.  I will be
    paying a fee each time I choose to use PayMate.  The DCU will not have
    to handle the clearing of checks.  They might even be able to pick up a
    little "float" money along the way.
    
    Let's understand the real costs and motivations behind these services
    before arbitrarily calling a halt to them all.

Autonet is different from the purchase protection, as it is optional and
costs $$.  Hopefully they'll can it if it isn't self-supporting.  We're
all going to pay for purchase protection, and an insurance company some-
where is going to be making profits from it.  Drop it now!

Tim

    
    Any non-essential service DCU offers MUST be self supporting (ie. 
    making money).  If it is not money generating or break even, then 
    it should be dropped.
    
    We were told last night that Autonet only cost DCU 6 PCs.  No
    additional people at the branches or headquarters.  So the same people
    that were providing all of the other DCU services will now support yet
    another service.  Sooner or later, this practice will result in one of
    two things.  Either more DCU employees to maintain a certain level of
    service (for all services) or reduced level of service for DCU
    members.  There IS a personnel or member cost for EVERY service DCU 
    provides.
    

    Heres a quick point of reference.... I just signed an auto loan with
    Chase Manhattan (I'm in Arizona).  Best rate I could get from my local
    bank was 10.00%, Chase gave me 9.75% on a five year loan.  I did not
    even check with DCU because they were not competitive last time (in
    '82 they were very slow with the paperwork, Chase took less than 30
    minutes right there in the dealership)
    
    Jeff
    

	I received (and accepted) a mail flyer offer from the Monterey (CA) 
Federal Credit Union to refinance my auto loan at 9.1%, down from 13.25% at 
New Hampshire Savings Bank. I am a member of that credit union.

-stephen

I felt they had a good story about why they started AutoNet (although I
doubt that the cost in terms of DCU employee time is anywhere near zero).

The question becomes: why was it necessary to hold a special meeting 
and get confrontational with the board before we got that simple answer?

Also note that this question -- one of the few that was clearly and 
concisely answered in over 3 hours -- was answered by the new president, 
not by any member of the board of directors.  Some board members were
much better than others at giving understandable answers to questions,
but on the whole, getting answers to questions I felt people had a right
to ask was like struggling through molasses.  This is not to say that
I disliked all the answers that the board eventually gave us.  But I am
very frustrated that it should be that hard to get answers, at a meeting
that they called so that we could ask them questions.

	Larry

    
    The stated reason for offering Autonet was to get DCU members to take
    out auto loans from DCU.  There is also a leasing aspect to this
    service.  I don't know any of the details.
    
    I offer a much simpler solution.  Offer auto loans whose terms and
    rates are better than 'competitive'.  DCU members do not use DCU for
    auto loans because their rates and terms stink.  Will offering a
    gimmick make those rates smell better?
    
    Basics.  Back to basics.  The problem is the rates and terms being
    Offered.  Again DCU, ask your members if they have taken loans with
    other institutions instead of DCU.  Ask them if they checked DCU out? 
    You will get a much better evaluation of your competitive rates than
    just asking a lot of people that haven't been looking around at other
    institutions.
    
    Maybe DCU should start matching rates and terms being offered to its
    member by other institutions?  If a DCU member gets a written auto loan
    commitment from another financial institution within say 1%-2% of what DCU
    is offering, then DCU will match their rate (terms must also match).  We 
    keep members money working for members that way.  DCU members have proven 
    themselves over the last 11 years to be the LOWEST risk loan.  Invest 
    in the best; DCU members!
    

    
    Re: .18
    
    Yes, basics.  I took out a DCU auto loan in February specifically
    because, with the extra half point for payroll deduction, they
    were 1.25 points lower than dealer financed AND the payroll deduction
    saves me the hassle of writing and mailing a check each month.  In
    this case it worked for me and this is precisely the kind of thing
    I am looking for DCU to provide.
    
    Steve