Why Was I Dreading This Letter?

As a long-time credit union member, I’ve come to expect that I’ll be treated differently than a bank customer (AKA profit center, but I digress). So why had I been dreading the letter I got yesterday, announcing the reset of my two year ARM?

It’s probably all the news stories I’ve seen – earnings are challenging for banks and credit unions, there’s the fear of job losses, and the increasing loan delinquencies that come in a bad economy. Plus I knew my credit union could “play by the rules” of the ARM and bump up my APR on the loan by one percent, no questions asked (which in the wake of the above headlines, had become my expectation).    

It’s human nature I guess to let go of the truth about our own situation when we see a different (and in this case scarier) reality happening to others.

All across the country, people like me are opening letters from their bank – ARM resets are going up because “by the rules” they can, and credit card & other rates are heading up. All because numbers have to be hit, Wall Street fat-cats have to be pleased, and capital reserves have to be rebuilt in the wake of loans the banks shouldn’t have made in the first place.    

But I am a credit union member, and this is the notice I got in the mail: the APR on my mortgage for the next two years is adjusting DOWNWARD 50 basis points, to 4.75%.

Why is this? Because my credit union isn’t looking out for Wall Street or trying to milk a number – they’re looking out for me. 

It’s just one more – very personal – example of how credit unions are different from banks.  

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6 Responses

  1. Way to go —– this is an awesome example of the credit union philosophy!

  2. This kind of experience is what generates long-term loyalty between a member and an organization. Two things happened right here: The credit union did something in your favor, which means that you can trust them to act in your best interests (not true for a bank), and two, you have a new shared story with the credit union, one which has generated tremendous good will on your part, that you are now sharing with the rest of the world. This was a moment of truth…. and the credit union delivered, BIG time. Awesome. Thanks for letting us know.

  3. Awesome, thats exactly the way it should be. Thanks for sharing the story Jeff 🙂

  4. @morriss

    I think that speaks to what we talked about at BCBNE, its a great way to create a story that a member (in this case, Mr. Hardin) tells themselves as they are looking to buy new products or pass on a tip to a friend.

  5. @Morriss: Well said! I am busy spreading the word about this letter. It’s one part relief and one part “THAT’S why I’m a CU member.”

    @Andy: Couldn’t agree with you more … but what’s this “Mr. Hardin” business? 😉

  6. Great testimonial!

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