MARLBOROUGH, Mass. (10/14/08)--Consumers' lack of understanding when it comes to the credit union difference can have an adverse effect on credit unions, wrote the president of the Massachusetts Credit Union League in a "president's message" to credit unions in the state.
Daniel F. Egan, Jr. wrote that with the passage of the Emergency Economic Stabilization Act of 2008, financial and credit markets should hopefully stabilize, but credit unions need to do their part (Values & Visions Oct. 6).
"One issue that has become clear as we dealt with the reverberations from this financial crisis is that the consumers' lack of understanding when it comes to the credit union difference comes a cost to us," Egan wrote. "We have expended considerable effort to make our credit unions the safe and sound institutions they are.
"Likewise, we fund a very well-capitalized and safe federal deposit insurance system, yet numerous credit unions indicate that they heard from many consumers who were nervous about the money that they had in a credit union," he continued. "We all need to do more to communicate the fact that credit unions are unique and distinct."
Consumers desire the benefits that credit unions offer, such as concentrating investments in loans to members because that is the main purpose and commitment of credit unions, Egan added.
When consumers are made aware of this--along with the fact that credit unions have a true commitment to safeguard members' deposits--then all credit unions "will enjoy their true power in the marketplace," Egan concluded.
courtesy of cuna.org