credit union getting greedy

[buckeyefarmer]

My cu just announced an end to free overdraft protection, and increase to the interest. I called to ask why but couldn't get an answer, other that its not as much as other banks. I reminded them they exist because of their members, they are not a bank. Their loan rates are no longer competitive. I've been with them 30 yrs but am looking at another cu. the soap box is now available for someone else.

 

[300UGUY]

My cu just announced an end to free overdraft protection, and increase to the interest. I called to ask why but couldn't get an answer, other that its not as much as other banks. I reminded them they exist because of their members, they are not a bank. Their loan rates are no longer competitive. I've been with them 30 yrs but am looking at another cu. the soap box is now available for someone else.

I am thinking of going to a cu. Our local bank has charges on everything, and the interest paid is non existent. As far as loans, I bought some property last year, they were 1% higher on a mortgage, and the fees were higher also. I didn't do biz with them... I don't know why anybody would. All the small banks around here are the same, high costs and no return. I really think that small banks are going to go the way of small retail stores, because that is what they really are. They sell money, and the simply are never going to be competitive.

 

[kenmac]

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

 

[Tomtint]

I have said it before on a previous thread.... Banks are starving, they need to create ways to generate new revenue " fees" to cover the losses they are seeing because they can not lend money on housing. Mortgage and auto loans are a banks cash cow. No mortgages,.... they will find a way another way to get in your pocket. some smaller banks and CU have been playing on the push back from the big banks, picking up depositors and market share by offering low/no fees. Problem is that is is a strategic bait and switch.

 

[Bird]

Everything is changing. I've been a member of the same credit union for more than 48 years. Back when I started, it was basically a "savings and loan" outfit. It paid more interest on savings accounts than most banks, and charged less interest on loans. Then they started checking accounts as well; later moved into a big new facility that included safety deposit boxes, etc. and basically became a full service bank, including credit cards and all that stuff. Long ago, I financed cars, RVs, and in 1977, even a new house, with the credit union.

And in the early 70's, I even financed RVs without even going to the office; just took care of it on the telephone.

But all that changed. I do still have free checking, with even a tiny bit of interest, but they now pay very low interest and they charge so much on loans, that I can easily beat the deals offer. When I wanted a home mortgage, I got a better interest rate and faster, easier service by going elsewhere.

But since i've never had any interest in, or concern for, overdraft protection, I had to go to their website just now to see if they still offer it, and they do, but there's a fee if you ever use it.:laughing: And of course that's no surprise.

 

[sam5570]

Everything is changing. I've been a member of the same credit union for more than 48 years. Back when I started, it was basically a "savings and loan" outfit. It paid more interest on savings accounts than most banks, and charged less interest on loans. Then they started checking accounts as well; later moved into a big new facility that included safety deposit boxes, etc. and basically became a full service bank, including credit cards and all that stuff. Long ago, I financed cars, RVs, and in 1977, even a new house, with the credit union.

And in the early 70's, I even financed RVs without even going to the office; just took care of it on the telephone.

But all that changed. I do still have free checking, with even a tiny bit of interest, but they now pay very low interest and they charge so much on loans, that I can easily beat the deals offer. When I wanted a home mortgage, I got a better interest rate and faster, easier service by going elsewhere.

But since i've never had any interest in, or concern for, overdraft protection, I had to go to their website just now to see if they still offer it, and they do, but there's a fee if you ever use it.:laughing: And of course that's no surprise.

Bird in today's world the time you have been with one bank or cu really count's aganist you. i delt with one bank for year's when i was in business i would go to sales and buy equipment and call the bank on monday tell the guy to put x amount of dollars in my acount no problem my wife would even go by and sign the paper because she was already in town. the guy i delt with retired and i called the bank one day and guy told me i would need to come in fill out a credit app and we could go from there. i left that bank but the thing thst bother's me is for years they been charging people anywhere from 14 to 21 percent intrest on loans and right now ther paying less than one percent on saving's that's just wrong.

 

[Stimw]

The stupid CU that I belong to-
I applied for a VISA card 10 years ago. I had over $20,000. in CD's with them. (perfect credit) They turned me down!
I closed out some CD's a year and a half ago when buying a new Manufactured Home. They charged me $5. for a Casheers Check!!
I went in to deposit $1000. last week. I had not had any transactions since removing the CD's. I had to show my ID TO MAKE A DEPOSIT!! And fill out a form TO MAKE A DEPOSIT!
HOW DO THESE D#$%& CROOKS GET AWAY WITH ALL THAT FRAUD!!!!
All the fees are paying for the new buildings. They have lost touch with their roots.

 

[zzvyb6]

Sounds like you are using the c.u. to provide free bridge loans. I'd object, too. I keep a surplus in my account. Why are you using my money to make up for your carelessness ? Try spending less than you take in and you won't have anything more to complain about.

 

[etcallhome]

Like others have stated ours has started to charge for different services ,compared to years ago. Been member for 39 yrs. 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 . So even if the CU interest rate was a little higher at the end of the loan you would still end up paying less.

 

[kenmac]

I get no fees. I find what I need and pay with something almost unheard of these days. CASH ! If I don't have the CASH. I don't buy it.If you'er paying over draft fees, you don't have the money to buy.I sure wouldn't rant about someone charging me a fee If I bought something and didn't have the money in the bank to cover it and, the lending institution charged me a fee to cover my bad check,debt card withdrawal,etc., Maybe they should just do away with that protection and just let the check bounce

 

[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.