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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

468.0. "What a Credit Union can be" by LJOHUB::SYIEK () Tue Feb 18 1992 13:41

The following is the text of a special announcement from another credit union
that I have shares in. I am posting it as a comparison with DCU, and as a sample
for the DCU BoD candidates, not as a solicitation for membership. Also, to 
comply with the corporate guideline prohibiting the posting of private 
information in Notes, I have omitted the full name of the credit union.	  -Jim

			************************

Dear Member,

As we begin a new year, it's only natural to look back on the one just finished.
Without doubt, 1991 was one of our most challenging years and despite a sluggish
economy, it was a year of healthy performance for *** Federal Credit Union.

To show our gratitude and thanks to you, the members of  *** Federal Credit 
Union for your continued support, the Board of Directors is pleased to announce
the following, which appears on your enclosed December 1991 statement:

    * A 3% interest-refund on loans. Every  member of record on December 31,
      1991 who made loan payments to *** in 1991, including VISA credit cards
      and mortgages, received a 3% refund on the total finance charges paid
      during the year.

    * A 1/2% dividend-bonus for the 4th quarter. An additional 1/2% dividend
      was paid on all Prime Share Savings Accounts for the 4th quarter of 1991
      (4.50% + 0.50% = 5.00%).

Our tradition continues into the new year, too. *** Federal Credit Union is
kicking off 1992 with a special promotion we call, "The $10,000,000 Credit
Countdown." That's the amount of additional cash we have put aside to make sure
our members have the money they need -- for bill consolidation, for new cars,
for college tuition, etc. -- as our regional and national economies recover.
And, every month there will be one special loan rate along with a special
drawing. Come find out how easy it can be to get the credit you need and take
full advantage of our $10,000,000 Credit Countdown. At our low rates, we expect
the money to go fast!

*** Federal Credit Union also helps you save when you do borrow. We continuously
review our rates and make adjustments whenever possible. Today, our consumer 
loan rates are the lowest in years. For example, our VISA credit card rate has
dropped again to just 14.5%. That's 30% less than the national average. And, 
with a 25-day no-interest grace period on purchases, no-cost credit life 
insurance, no-cost travel insurance up to $250,000, and no-cost purchase
security and extended protection, it's definitely one of the best deals around!

Again, we thank you for your continued support and our best wishes for a happy,
healthy and prosperous new year.

Sincerely,

*************
Chairman of the Board

T.R	Title	User	Personal Name	Date	Lines
468.1	A goal to shoot for	GUFFAW::GRANSEWICZ	Vote for DCU Petition Candidates	`Tue Feb 18 1992 14:13`	6
	It's nice to see that not all credit unions have taken the commercial bank route. If everything that we have worked very hard for comes to pass, hopefully all DCU members can receive a similar notice sometime in the not too distant future.
468.2		SCHOOL::RIEU	Support DCU Petition Candidates!	`Tue Feb 18 1992 15:41`	2
	Amazing what a REAL Credit Union can do isn't it? Denny
468.3		PATE::MACNEAL	ruck `n' roll	`Tue Feb 18 1992 16:02`	4
	They seem to be a dieing breed though Denny, based on my experiences anyway. I've been involved with 3 credit unions over the past 8 years or so (and am still involved with 2 of them) and haven't yet seen any bonuses from any of them.
468.4		GUFFAW::GRANSEWICZ	Vote for DCU Petition Candidates	`Tue Feb 18 1992 16:21`	17
	RE: .3 Hmmmm..... Bankers running them by any chance??? 8-) As for a 'dieing breed', I'm not so sure. Got any nationwide statistics? Maybe people all over have been convinced that credit unions are banks and banks don't give dividend bonuses. I guess we should all be asking ourselves the question, "How much profit should a credit union be allowed to make and keep, without returning dividends to the membership?" DCU made over $7 million the last two years ($4 million of which was lost). If they made $10 million a year, would anybody out there expect a dividend? If you said "No.", then you belong to a bank. If you said, "Yes.", then you belong to a credit union. Your perceptions drive your expectations...
468.5	We used to get things like that	STAR::PARKE	True Engineers Combat Obfuscation	`Tue Feb 18 1992 16:23`	10
	When I first joined, in the early 80's, even DCU had end of year "presents". This does NOT meai I would assume "presents" in extra dividends, in times like these, from our credit union. Better loan rates, helping members, yes. PROFIT, not necessary. Just a message about where we stand and how WE (members doing ok) are helping OURselves (members in a tight spot) that sounded sincere, from a OUR member owned organization's Board and President. This is exactly one of the reasons that I think it is time for a change.
468.6		PATE::MACNEAL	ruck `n' roll	`Tue Feb 18 1992 16:37`	4
	� As for a 'dieing breed', I'm not so sure. Got any nationwide statistics? I did say that this was based on my own experience. Your mileage may vary.
468.7	what was - could it be again?	CVG::THOMPSON	Radical Centralist	`Tue Feb 18 1992 16:37`	6
	I remember when the DCU sent us year end messages like that. The good old days. I wonder why they stopped here and yet continue other places? Management differences perhaps? Nah, couldn't be. That CU must live of a different planet. :-) Alfred
468.8		VSSCAD::RITCHIE	Elaine Kokernak Ritchie	`Tue Feb 18 1992 16:41`	8
	That was certainly refreshing to read! I was beginning to think that there was no hope for credit unions, given what's been happening to Barnstable, DCU, and the Rhode Island credit unions. It's nice to know there is a light at the end of the tunnel, even if we can't see it yet. Elaine
468.9	Credit unions may get their wish	CSC32::B_SHAW		`Wed Feb 19 1992 09:59`	14
	If credit unions want to be banks, they may get their wish. I recall hearing that the money hungary politicians are eyeing the credit unions as a new source of tax revenue (probably with the assistance of real banks). Having a large earnings position and not distributing it to the memebers (so it can be taxed) or adjusting rates to reduce the earnings to minimal levels just make the polititians all the more anxious to tax the credit unions. So DCU and others who want to be banks may get their wish...and get taxed just like banks. Then they will need to raise their rates to cover the additional costs and make them less competitive with banks. It may be too late to reverse this process even if credit unions go back to the basics of being credit unions and not disguised banks.