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Topic: Credit Unions
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Wilf Day
rabble-rouser
Babbler # 3276
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posted 27 August 2004 11:51 AM
quote: Originally posted by audra trower williams: I'm not a member of my local credit union because they treated me like jerks.
This deserves its own thread. Has any one else had such a problem? Since credit unions are owned and controlled by their members, who elect the credit union board at the AGM like any democratic organization, I've never heard anyone say that about our community credit union. However, I've heard that some credit unions are trying to masquerade as commercial enterprises for some weird reason, likely an empire-building manager. Credit unions can be as vital to empowerment and community self-determination as unions. Does anyone have any tips or horror stories?
From: Port Hope, Ontario | Registered: Oct 2002
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'lance
rabble-rouser
Babbler # 1064
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posted 27 August 2004 12:58 PM
quote: Are there credit unions that can let me do things on my computer, as the banks do?
Our credit union, VanCity, is as computerized as any bank -- to the extent that when we moved here, we didn't bother getting accounts at the local equivalent, Calgary Savings. But if we had, we'd have access to the same online services. I've had the impression that credit unions are not as big or as well-developed in Ontario as in BC or Quebec, say. But that could be outdated, as I haven't lived in Ontario in fifteen years.
From: that enchanted place on the top of the Forest | Registered: Jul 2001
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Scott Piatkowski
rabble-rouser
Babbler # 1299
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posted 27 August 2004 01:17 PM
I've dealt exclusively with Credit Unions since university (I had to deal with a bank then for my student loans). I haven't always been happy with them (I am currently, as noted below), but that was not a function of corporate structure. It was more that they were operating without regard to members' needs. But, the important thing is that I can complain to the elected Board of Directors or their Member Relations Committee and get a response. About a decade ago, things were bad enough that a group of us pulled together something called the "Campaign for a Democratic Credit Union". We asked for things like bike racks, wheelchair accessibility (seriously, it was an issue), better hours, more branches, more access to socially responsible investment options, posting of Board minutes, the aforementioned member relations committee, and more interaction with the broader co-operative sector. None of our Board candidates got in, but we opened the door for other non-incumbents to be elected. When a new CEO was hired shortly thereafter, all of the suggestions of the CDCU were quickly implemented. If you don't like your local credit union, you can change it. If you don't like your "local" bank, just throw up your hands.
From: Kitchener-Waterloo | Registered: Sep 2001
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Sharon
rabble-rouser
Babbler # 4090
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posted 27 August 2004 01:26 PM
We have our mortgage, our accounts, our RRSPs and our son's education fund, and other investments at our credit union. We do everything on-line as well -- transfer money from one place to another, pay the bills, etc.I occasionally have had conversations in check-out lines with people who see me using the debit card and they say something like, "Oh, I never use mine -- the fee is so high." And I'm always happy to share that we pay no fee for using the card. On top of all that, our credit union staff are friendly and helpful -- and seem to treat everyone in true membership style. (They never let us bounce a cheque. They phone and say, "That chequing account is a little low...")
From: Halifax, Nova Scotia | Registered: May 2003
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Sharon
rabble-rouser
Babbler # 4090
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posted 27 August 2004 01:41 PM
quote: Which Credit Union is that, Sharon?
Well, I suppose the catch is that it's the Province House Credit Union downtown. I felt confident praising it though because all the services it offers are offered at all the other branches as well and we never feel any need to turn to a bank (where we've had awful experiences -- just trying to deal with a totally inefficient system and a constant turnover of staff.) And also, everyone we know -- even those who are not related to the provincial government -- uses different branches of the credit union around town and have very positive experiences with them. It's too bad you had that experience and I think it's true that the manager sets the tone and makes for a good or bad experience.
From: Halifax, Nova Scotia | Registered: May 2003
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audra trower williams
rabble-rouser
Babbler # 2
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posted 27 August 2004 01:44 PM
Sharon: I suspect you are right. The manager seemed like a total blowhard.Shit. Right. Young Street. Heh. See, I know they are big-picture-evil, but the TD Bank on Spring Garden has been SO AWESOME to me. Sigh. [ 27 August 2004: Message edited by: audra trower williams ]
From: And I'm a look you in the eye for every bar of the chorus | Registered: Apr 2001
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Privateer
rabble-rouser
Babbler # 3446
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posted 27 August 2004 02:41 PM
What's the typical annual Credit Union membership fee?If a credit union is not a reasonable option, I'd suggest using Presidents Choice for low-maintainance banking. They have free transactions and interest rates, both for borrowing and saving, are better than CIBC (owned by the same people as PC) or any other regular bank. And you get a little fringe benefit of the occassional free groceries. I use the TD on Spring Garden Rd. and found very good for high maintainence banking; they got my mortgage even though PC had a better rate because I like dealing with that branch and PC only has telephone agents to help you. Still TD does charge you those evil transaction charges that the banks are happily extracting from us. Why use the TD bank account, when the PC account is free? If you need branch services, whatever you do, do not deal with CIBC (my ex-employer) or RBC. Both have been competing in the last few years to be the quickest bank to eliminate branch, face-to-face, services. They are the two largest banks, and value your average customer the least because they are going for the big bucks.
From: Haligonia | Registered: Dec 2002
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Sara Mayo
rabble-rouser
Babbler # 3714
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posted 27 August 2004 03:06 PM
Has anyone had any experience with the Citizens bank?They have no branches, but with an agreement with many credit unions across Canada, clients have free access to more ATMs than the Bank of Montreal (my current bank). I think they are related to VanCity. I've wanted to join them for a while, but as I was a Quebecer I was ineligible. Now that I'm in Ontario, I think I will switch. Their services charges would be the same as on my BMO account (everything is free if your balance is over $1000). If I joined one of the three or four major credit unions here in Hamilton I'd pay more and I'd only have free access to their machines. With Citizens bank, I get 4 times the ATM locations. (If you haven't noticed, for me ATM access is far more important than being able to talk to a teller in person). I know the NDP switched a few years ago from the Bank of Montreal to Citizens Bank (BMO was charging them thousands of dollars a year in service charges!), but I've never heard anyone's experience with their personal banking services. [ 27 August 2004: Message edited by: Sara Mayo ] [ 27 August 2004: Message edited by: Sara Mayo ]
From: "Highways are monuments to inequality" - Enrique Penalosa | Registered: Feb 2003
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Wilf Day
rabble-rouser
Babbler # 3276
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posted 27 August 2004 08:58 PM
quote: Originally posted by abnormal: The big banks . . have the implicit support of the Federal Government (i.e., they're too big to fail).
Lots of answers here. quote: DICO provides deposit insurance protection for each individual depositor up to $100,000. The maximum basic coverage applies to the total of all insurable deposits held at the same institution. Basic deposit insurance protection applies to savings accounts, chequing accounts and term deposits including guaranteed investment certificates.
It includes a list of credit unions in your municipality. [ 27 August 2004: Message edited by: Wilfred Day ]
From: Port Hope, Ontario | Registered: Oct 2002
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DrConway
rabble-rouser
Babbler # 490
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posted 27 August 2004 09:47 PM
quote: Originally posted by Privateer: If a credit union is not a reasonable option, I'd suggest using Presidents Choice for low-maintainance banking. They have free transactions and interest rates, both for borrowing and saving, are better than CIBC (owned by the same people as PC) or any other regular bank. And you get a little fringe benefit of the occassional free groceries.
The only thing is, they cherry-pick people who have stable job histories and who can produce a last paycheck. I know this because when I signed up for an account back in 1998, they wanted a recent paycheck and ran a credit report on me. I declined overdraft, and I got an approval to set up an account. quote: As spake by abnormal: That's what I said. Deposit insurance doesn't cover a lot.
If $100,000 isn't "a lot" to you, I'd like to have your job, buster. [ 27 August 2004: Message edited by: DrConway ]
From: You shall not side with the great against the powerless. | Registered: May 2001
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Rush
rabble-rouser
Babbler # 6000
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posted 27 August 2004 10:12 PM
I don't bank at a credit union anymore because to my knowledge they don't have savings accounts that pay as much interest as the Bank of Montreal. http://www.bmo.com/cgi-bin/t3bmo.cgi/rates/viewSavings.taf Premium Rate Savings account up to $4,999.99 Interest Rates 1.850% as of August 27, 2004 I don't want to try ING Direct http://www.ingdirect.ca/en/acct_rate/index.html I'm not comfortable with an Internet only bank that does not have any physical branches. They do offer 2.25% interest though. Do any Canadian credit unions offer savings accounts with interest rates as high as BMO or ING?
From: Canada | Registered: Jun 2004
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Rich L
rabble-rouser
Babbler # 4915
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posted 10 September 2004 01:41 PM
Interesting dicussion on CUs. I'm personally a big promoter of credit unions for several reasons, though that's not to say that they can't be improved. Some thoughts and comments I have:1. They're owned by the community - everyone with an account is a member (a one-time refundable $5 share is all it takes to be a member at my CU) and gets a vote. Of course, like other democratic organizations including unions, that doesn't always guarantee progressiveness. Some CUs are quite conservative and focus disproportionately on returns to members for the shares or level of business they do. 2. CUs typically offer lending rates that are superior to those offered by the banks. Unfortunately, they tend to be more conservative lenders in my experience, to the point where many people I know have left their CU for a bank that offers them a loan where their CU wouldn't. My Mastercard is still a BMO one - when I was a student, my CU turned me down for a Mastercard, while BMO offered guaranteed approval for any student application. 3. Perhaps one of the biggest benefits of banking at a CU is the customer service. I used to have an account at BMO - the line-ups were NEVER shorter than a 45 minute or hour-long wait, with only 2 of the 6 wickets ever open (I think they were purposely understaffed to force people to move to ATMs) and the tellers were generally surly, judgemental, and rude. The level of service was despicable! I am at Assiniboine CU in Manitoba now and the line ups are never more than 5 minutes long and the tellers are extremely friendly, courteous, and very competent. 4. Community economic development is an important reason why I support ACU. They offer seed money that has helped a number of organizations and created many jobs in the inner city. ACU also opened the first branch in the West Broadway area of Winnipeg (which is generally very low income) - the first opening for any fin'l institution in the area in something like 80 years. CUs have generally opened branches or taken over branches in inner cities and remote towns when the banks moved out, leaving people with no banking option. 5. Is your money safer at a bank? Some people have said they wouldn't bank at a CU because they're smaller and, as a result, more prone to failure. The reality is that your money is insured at either type of institution. Which type of institution is more likely to make riskier investments that threaten its own financial health? The banks - a few years ago, TD made a bunch of massive bad international investments that caused that year's profit (about $1billion in previous years) to shrink to almost nothing. Banks are often invested in various things around the world so that they are quite vulnerable to a financial meltdown. CUs meanwhile are invested in real people in the community. 6. CUs tend to actually hire people in the community. I read a financial services study that found that people who identified themselves as being a visible minority also tended to use ATMs way more frequently than did the population at large. The reason? They were generally being treated in a rude and patronizing manner by largely white tellers, so they avoided them by relying on the ATMs. My CU's staff is strikingly different from any bank I know of in that it genuinely reflects the diversity of the community I live in. 7. Services - some people have suggested that the CU isn't able to offer the same services as the banks. In my experience in Winnipeg, this hasn't been the case. All CU members can use any CU ATM and they all offer the same range of online banking, investment services, and mortgage and savings options that any bank would. I have found my CUs service charges to be less than that of any bank in the city, though I think they could still come down some (if you have $1000 or more as a balance at ACU, you pay no service fees - I think that threshhold could be lowered and that fees for those with less than that could be reduced).
From: Winnipeg | Registered: Jan 2004
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arborman
rabble-rouser
Babbler # 4372
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posted 11 September 2004 12:21 PM
I'm a member of Vancity, and I couldn't be happier.Our accounts have minimal service charges ($7 a month for unlimited transactions, ZERO if the balance is more than $1000) They gave us an astonishingly good rate on our mortgage, which none of the other 4 banks I talked to could match. Very friendly repayment terms as well. Also, they give out $1M in annual grants to small non-profits (in $10K increments) for various community development projects. They also give $1M in capital/big funding for a non-profit each year, which is selected by the members. 3 years ago it was arborwoman's workplace, last year it was a desperately needed women's shelter. These are good things. Some of their board members are fantastic (Cheeying Ho, for example). Honestly, though I know there are some lousy credit unions out there, I just can't imagine using a 'mainstream' bank anymore. Because of a job I had, I needed an account at RBC for a few years, and had endless troubles with it. I had similar experiences with CIBC.
From: I'm a solipsist - isn't everyone? | Registered: Aug 2003
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