credit union getting greedy

[buckeyefarmer]

In my case it's not a free loan, there is interest on the money loaned, so the new fee is to simply transfer money from a preapproved loan to my checking. This is a service they have always provided free so you don't have to track your instantaneous balance, and now they are changing their policy and I'm objecting to it. I'm objecting that it used to not cost a fee for them to apply the loan against a negative balance, and now they decided to apply a fee. This is a credit union, not a bank. It's a member owned, non profit organization for the benefit of the members, so today as a member I called and objected to their new policy. One of the nice things about a CU is they don't (didn't) have all the nickel and dime fee's that banks do, they have always had very reasonable rates. For those that said "try spending more than you take in", that's not the issue at all, you've missed the point. I have plenty of money in other accounts and don't like keeping a large surplus in checking and I used this overdraft as it was intended. I also found another Credit union, closer to my house, that I can join. They have a no fee overdraft protection. I'm considering joining them. Anyway, I just felt the need to rant, now I feel so much better. :laughing:

 

[Uncle Doug]

Been using the same CU for 20 years and still very pleased with their service and fee structure. Things change in all businesses, even CU. Just bought a new car at 2.1% with just a phone call first. Bought a new motorhome last summer with just a phone call also.

I got no complaints.

 

[mrmikey]

If you don't have the money in the account don't spend it. Problem sloved

My theory also, I do have overdraft on my accounts is case I screw up, which I've done once in the past 10 years, (I had a brain fart and was thinking it was a pay week and it wasn't) I have no problem them charging me for the service.
What does tick me off is charging to transfer money between accounts via the internet, sure it's only $1.50 but it's the principal. No people involved, no time so why the charge.
As far as earning money on your deposit, hahhh, good luck with that. My definition of interst is something you have for a nice looking girl, it doesn't even enter the equasion in reference to banks. IMHO they are bloodsuckers, in the same vein as lawyers, politicians, gas companies etc. They have a monopoly so you're scr**ed.
Rant off ......Mike

 

[Bird]

I did find out long ago banks and most auto loans charge you interest for the length of the loan on total amount borrowed. CU only charge interest on the balance of the loan .

Wasn't that practice by all the banks halted many, many years ago? I hadn't even heard of that in a lot of years.

 

[Bird]

What does tick me off is charging to transfer money between accounts via the internet, sure it's only $1.50 but it's the principal.

Ssshhhhhh, quiet. Don't let my credit union find out about that 'cause that's a fee they haven't learned about yet. And actually, I don't pay any fees unless I use their debit card to get cash from an ATM, which I very rarely do. And the debit card has never been used for anything else.

 

[mjarrels]

Navy Federal Credit Union still treats me right, only problem is they are 90 miles away. Local credit union still offers free money orders and cashiers checks but no safety deposit boxes. I'm looking for a good quality xxx safe now. BIL just bought a new one, weights about 700 pounds.

mark

 

[jinman]

I've been with the same bank since 1982. Of course, it's been bought out and resold about three times. I now pay most everything through electronic draft or with a credit card at point of purchase. I use very few actual paper checks. I think the Clarke Checks company is feeling the squeeze of electronic transfers. The last time I went to re-order checks, they were up to nearly $30 for a box of 100 checks. Instead of paying that bloated price, I went to Walmart and ordered 150 checks for around $13 with delivery. At my current rate of use, that may be the last checks I ever order. It's a lifetime supply.

I keep most of my 'savings' money in a Money Market Mutual Fund at Vanguard. When I need money, I can write an actual check for $250 or more on that money or write the check to myself and deposit it to my checking where I can break it down to smaller amounts. The easiest way is send the money directly to my bank account online. For that service, neither Vanguard nor the bank charges me a fee. That money market account is also my escrow account for purchase of mutual funds and stocks. Stocks sales roll right into that account and I purchase from it when I see a stock or fund I want to buy. The funds are not FDIC insured, but FDIC protection has limits I would exceed anyhow.

 

[dmccarty]

I have tried to give our CU business but their rates are usually worse than other lenders. When we tried to buy land they would not offer a loan because they considered it a business loan to buy more than 15-20 acres. Fine, give me the loan. No can do said the CU. I went with a large bank for the land loan and eventually the bank got the construction and house loan. I tried to refi with the CU last summer because their rates were lower than the bank which was a surprise. That cost me $750 to NOT get a loan because of the appraisals. We called up the loan officer at the bank and she said she would not recommend trying to refi right now because it is hard to get a good appraisal with fair comparable. Dumb A...s am I. We should have talked to our local bank loan officer first before the CU. The CU did not have a clue but the local loan officer sure as heck does.

There is another local CU we can use but their rates are even worse than our primary CU. Unreal what they charge on a mortgage.

CU's need to wake up or they are going to go out of business. The only reason we stay with the CU is ease of access. If I left my current employer we would move to the bank since there would be no real reason to stay with the CU.

Later,
Dan

 

[Bird]

I use very few actual paper checks.

I used ONE last year and that was to renew the registration my little trailer.:laughing: I've already done this year online, so I may not use any this year. And since I bought a box of checks 7 years ago, and still have most of them, I don't anticipate buying any more in my lifetime.:laughing:

 

[MossRoad]

Many folks don't realize there are federal rules regarding electronic money transfers. You can go to the bank in person, or an ATM and make transfers out of your savings account as many times as you want. But you can't ELECTRONICALLY transfer money out of your savings account more than 6 times in a 4 week period. ELECTRONICALLY means internet and phone.

BTW, I've been with the same Credit Union for over 40 years. My mom got me in when I was a kid. I do my savings and checking there. But we did our mortgages and land loans at other financial institutions due to better rates. We now have a home equity line of credit with the Credit Union because they had the better rate. Also, better service overall. We have IRAs there, too.