Addressing the Credit Union Problems

Is this finally an industry position paper on itself that makes sense? [broken link removed]

The report should get people talking which it seems to be geared for. It's refreshing to see that finally some common sense is being written about the future of credit unions. Far cry from the propoganda we have become so used to from the League.

Wonder what their response will be ?

R

Riddler said:

Far cry from the propoganda we have become so used to from the League.

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Maybe not such a far cry? The highlighted comments are not necessarily true:

Credit Union Membership....what does it mean?

• Every person who saves in a credit union is an owner, and has a say in its running. Each member has one vote in the running of the credit union, regardless of the amount of business he or she has at the credit union. The member has a right to vote at Annual General Meetings, and when electing the Board of Directors. Members can also stand for positions on the board.
• Credit unions are motivated to put their members' needs first, and therefore provide excellent service. There are no external shareholders influencing its activities. Credit unions are owned by members for members and their Boards reflect the will of the membership.
• The credit union movement does not focus on profit-making alone. Credit unions are not-for-profit mutual financial co- operatives, with all profits going back to the members.
• Credit unions provide low cost finance, with loans tailored to the member's needs. They offer the flexibility to make larger repayments than agreed or to make lump sum repayments at no penalty. There are no hidden or additional costs.
• Excellent dividends are paid to members for all savings or shares in the credit union.

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In particular there arguably are hidden costs to CU credit when you consider that most require the borrower to maintain money in shares/on deposits thus inflating the real cost of credit.

Clubman
Have you read the paper yet ? I have and for the first time it seems that credit unions are writing honestly about themselves and dealing with the issues they face.

Riddler