“HOW IS THE CREDIT UNION AFFECTED BY THE CURRENT FINANCIAL CRISIS?”
This is a question many members have been asking us lately. The BCFCU's investment policy does not allow the credit union to invest in the types of financial instruments which have caused losses for our banking competitors. Our main investments are to our members in the form of loans. Deposits which are not loaned to members are invested in certificates of deposit up to a maximum of $100,000.00 per financial institution; the maximum amount insured by NCUA or FDIC, the agencies that regulate credit unions and banks.
The biggest risk which the BCFCU faces in the current crisis comes from members who may default on their loans. As the economy falters, some members may lose their jobs, or experience reduction in income, making it difficult for them to repay.
What can members do to support their credit union? First, if you have a loan, do your very best to keep current on your payments. If you have trouble making your payments, please call us. Second, if you are in the market for a loan, come talk to us first. Our loan terms are fair and easy to understand. Third, take the time to safeguard your accounts by keeping track of your activity and securing your checks and debit cards. Fraud hurts everyone. Lastly, spread the word. When you hear that friends are shopping for credit, send them to the credit union.
In the coming months, the BCFCU may lower dividend rates as the economy slips deeper into recession. However, members who may need to borrow money may benefit if loan rates fall.
Credit Unions are the most stable financial institutions around. They are owned and controlled by the members that use them. YOU play an active role in keeping the BCFCU safe and sound!
