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Thread: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

  1. #71
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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    Quote Originally Posted by buck View Post
    How about to get depositers, loans, etc from different geographical locations that still meet membership requirements? If move your money really proves to be a success of any type, current CU's will chase the money to different locations.
    That makes essentially no sense. A CU couldn't offer branches in enough places to make it worth while to be that open. Remember the largest one basically has tiny outlets on naval bases and it's still tiny. Bank Movement day is going to spread millions of new accounts across tens of thousands of CUs. No CU is going to chase a few accounts across the country per region. That's stupid. They're just going to pick up deposits in their region. Instead of going one block over to a BoA outlet, they'll go one block that way to a local CU. The CU doesn't have to do anything except accept their money and not be BoA.

    Actually, in looking through the thread, he blamed both the number of deposits to CUs and he also blamed the government. However, I am stating that CU's and banks will both be charging fees due to the government. They have stated as such. Almost all CU's will start charging fees, probably even yours and any CU that you might want to move to.
    Depends. My CU hasn't and isn't (at least publicly) stating they'll charge fees. Furthermore, the Frank-Dodd doesn't even apply to them. And that's likely to be the case for many CUs. A CU (or any bank) I believe has to have $10 billion in assets. That rules out the vast majority of CUs not to mention community banks. So their costs aren't going to rise because of government. If anything, a CU that starts to charge a new fee is either poorly run, or has a greedy board.

    What exactly is the government doing that's costing CUs money? Frank-Dodd is largely irrelevant to them. So what other piece of legislation are you talking about?
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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    Quote Originally Posted by obvious Child View Post
    That makes essentially no sense. A CU couldn't offer branches in enough places to make it worth while to be that open. Remember the largest one basically has tiny outlets on naval bases and it's still tiny. Bank Movement day is going to spread millions of new accounts across tens of thousands of CUs. No CU is going to chase a few accounts across the country per region. That's stupid. They're just going to pick up deposits in their region. Instead of going one block over to a BoA outlet, they'll go one block that way to a local CU. The CU doesn't have to do anything except accept their money and not be BoA.
    Credit Unions open new branches all the time. Here is a recent example.
    Tinker Federal Credit Union to open downtown Tulsa branch | Tulsa World
    Icon Credit Union to open new branch in Meridian | Business | Idaho Statesman


    Depends. My CU hasn't and isn't (at least publicly) stating they'll charge fees. Furthermore, the Frank-Dodd doesn't even apply to them. And that's likely to be the case for many CUs. A CU (or any bank) I believe has to have $10 billion in assets. That rules out the vast majority of CUs not to mention community banks. So their costs aren't going to rise because of government. If anything, a CU that starts to charge a new fee is either poorly run, or has a greedy board. What exactly is the government doing that's costing CUs money? Frank-Dodd is largely irrelevant to them. So what other piece of legislation are you talking about?
    Unintended conseuquences. The CU's realize how the Durbin Ammendment will affect them, which is why 92% of CU's that offer debit cards say they will start charging fees.
    Last edited by buck; 11-11-11 at 09:49 AM.

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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    I have noticed sponsorship of college and pro sports teams by some credit unions.....that bothers me. Are the CU's using member funds for this?
    As for charging fees, they already get paid when I use my debit card aand if that isn't enough, they can increase what they charge the stores when I use the card. If they charge ME a fee, I will go back to cash or check....
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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    I'm in favor of this movement to CUs because I'm against really big businesses of all stripes. CUs are local. That's local business. That's where I live. This movement needs to carry over until people realize that banks are not the only businesses that have lost their local significance and the local incentiveness that goes with that. We need to re-structure if we are going to grow out of our economic problems. The most important part is thought re-structure. Stop reinforcing stereotypical thought patterns that are patently false. Blame the Mass Media for that. If it makes them money, they'll propagate it. That's just busuness.

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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    Quote Originally Posted by UtahBill View Post
    I have noticed sponsorship of college and pro sports teams by some credit unions.....that bothers me. Are the CU's using member funds for this?
    As for charging fees, they already get paid when I use my debit card aand if that isn't enough, they can increase what they charge the stores when I use the card. If they charge ME a fee, I will go back to cash or check....
    They'll figure out a way to get the lost revenue back. I can't tell you exactly what that will ultimately look like - it's very possible that debit cards at both CU and banks will go the way of the dinosaur as financial instituions push customers to other means that can provide a larger profit, as just one thought.

    Anyway, they won't be able to increase what they charge the store in swipe fees and will have to lower to approxaimtely what hte banks are charing. They can try to maintain their current price structure, but competition won't let them. The stores would sign up with networks that have lower swipe fees (as required by the Durbin ammendment), which will force CU's to lower their fees.

  6. #76
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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    Quote Originally Posted by buck View Post
    Credit Unions open new branches all the time.
    No one said they didn't. I said it would be stupid to open additional branches to serve an area where you didn't have a reasonable concentration of existing clients. Aka, no CU is going to open up a branch where it has no clients.

    Unintended conseuquences. The CU's realize how the Durbin Ammendment will affect them, which is why 92% of CU's that offer debit cards say they will start charging fees.
    CUs are exempted from the Durbin Amendment for the vast majority. Very few CUs break $10 billion.

    Perspectives on the Durbin Amendment: Prof. Todd Zywicki

    Furthermore, that's actually not what they said:

    The Durbin Amendment and the truth behind debit card fees - Mywesttexas.com: Columnists

    "According to the Credit Union National Association's 2010-2011 Fee Survey, 91 percent of credit unions offering debit cards anticipate making some sort of change to their rates, fees and/or services as a result of the negative impact of the regulation."
    Last edited by obvious Child; 11-11-11 at 09:15 PM.
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    Re: Hundreds of Thousands of Consumers, Billions of $$ Move to Credit Unions

    Quote Originally Posted by obvious Child View Post
    No one said they didn't. I said it would be stupid to open additional branches to serve an area where you didn't have a reasonable concentration of existing clients. Aka, no CU is going to open up a branch where it has no clients.
    And I originally indicated, way back when, that CU's would open branches in other areas to chase people that meet their membership requirements. The fact that more money is moving into that branch of hte financial industry just makes that even more likely.



    CUs are exempted from the Durbin Amendment for the vast majority. Very few CUs break $10 billion.

    Perspectives on the Durbin Amendment: Prof. Todd Zywicki

    Furthermore, that's actually not what they said:

    The Durbin Amendment and the truth behind debit card fees - Mywesttexas.com: Columnists

    "According to the Credit Union National Association's 2010-2011 Fee Survey, 91 percent of credit unions offering debit cards anticipate making some sort of change to their rates, fees and/or services as a result of the negative impact of the regulation."
    I guess you don't quite understand unintended consequences. As the CUs are well aware, as they have stated, and why they were against the Durbin ammendment, no business will pay CU's what they currently pay them in swipe fees when they can just pay much lower swipe fees to the banks by going with other networks. You run a business and have the choice of paying 11 cents in swipe fees to network A that has big banks and the millions of customers or 25 cents in swipe fees to network B that has mostly CUs and their few thousand customers. Which one would you do business with?

    All of those things are basically fees. The CU ends free checking - the result? an increased fee or a new fee where none previously existed. But if you prefer... due to the Durbin Ammendment, customers of 91% of CU's will be paying more to the CU or getting less value from the CU. Once 91.0% of the CU's do it, what do you think the chances of the other 9% not following? Probably 0%.

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