I want to tell you about an important piece of legislation that was introduced in the Ohio House Representative’s committee this past Wednesday, House Bill 317. The proposed bill would provide a choice to Ohio school districts, township trustees, county treasurers and other public entities – the choice of being able to invest their funds in Ohio’s credit unions – in other words become eligible depositories for public funds.

Currently the Ohio Revised Code prevents the use of credit unions as public depositories under Ohio’s Uniform Depository Act. Currently, more than twenty states (including our neighbors of Michigan, Indiana and West Virginia) allow credit unions to accept public funds and Ohio needs to follow in their footsteps by passing HB 317. 

At a time of increasing mergers and globalization of our banks and lending institutions it is time to allow credit unions the opportunity to accept state public funds and recognize their vital role as financial institutions in our local communities. There are fewer choices for public entities as to where they can deposit their funds which makes it difficult for local officials to find local financial institutions to do business with. This results in less competition, less choice, lower interest paid on deposits and higher rates on loans. Allowing credit unions to accept their deposits would benefit our community and all of us locally who live, work or worship here.

Please contact your local State Representative to support this bill when it comes before the Full House of Representatives. You can reach Representative Dan Dodd who is a member of the committee hearing this bill, at district91@ohr.state.oh.us and ask him to support this bill in committee.

A recent blog posting on The Huffington Post recommended that consumers move their money from big banks as a New Year’s resolution. The point was that they had mismanaged things so badly it was time to send them a message where it would hurt – in the wallet. The message was made into a movie that runs about four minutes and you can see it here: www.moveyourmoney.info

In response to The Huffington Post blog, Credit Union National Association President Dan Mica posted on his blog, “Without question, financial consumers are angry at – and have lost their loyalty to – big banks. In today’s turbulent economy, credit unions’ cooperative business model has renewed relevance for American consumers.” Mica further commented that moving to a credit union now, amidst all of the turmoil makes perfect sense because of their service orientation, better rates and fees. You can read his full posting at: http://www.cuna.org/newsnow/10/system010710-9.html?ref=hed

If you live, work or worship in Licking County and you want to move your business to a community minded credit union from a for-profit bank, please consider Hopewell Federal to meet your financial service needs.

Credit Unions were once again highlighted in the news this week on CNN. The story mentioned not only the favorable rates on savings accounts and share certificates but also on their credit cards. You can see just how good our rates are by visiting our Web site. Beyond the better rates though, people felt like they were treated better at a credit union. CNN Story

 One of the advantages of belonging to a credit union is that you are treated with care and respect. You know us and we know you – our children go to school together, we work together and care about our community together because we are locally owned and operated.

 As this year draws to a close, all of us at the Hopewell Federal Credit Union family would like to wish you and your family a safe and prosperous New Year!

This has been a busy news week for credit unions. A lot of the buzz started after Suze Orman visited Larry King Live and discussed the current credit card situation with him. “Everyone should start looking into a credit union credit card and do a balance transfer,” she said. In her opinion credit unions offered more favorable rates than banks.

On her Web site www.suzeorman.com she offers a lot of great information. Did you know that a credit card issuer can raise your rates if you miss a student loan payment, even if you paid the credit card on time? She also has a quiz to test how much you know about your credit card – that has some interesting facts. Take it to find out the answer to this question: Of the 12 largest bank-issued credit card companies in America, how many violate at least one provision of the Credit CARD Act?

Suze’s site also has a link to www.creditcardconnection.org where you can find out information about a particular credit union and their credit card. The credit cards are rated based on a five star rating scale as follows:

1. Fixed or variable rates 18% and under.
2. No penalty rate.
3. No balance transfer fees.
4. No annual fee.
5. Late fees $25 and under.

I couldn’t be more pleased to tell you that Hopewell Federal Credit Union has a five star rating for our VISA card!

While Hopewell Federal is available to anyone who lives, works or worships in Licking County, for those of you who don’t meet that criteria you can go to www.CULookup.com to find a credit union that is available to you.

 

Seasons Greetings from Hopewell Federal Credit Union!

I came across this recently and thought I would share it. It’s interesting to note how people are handling the holiday shopping season in this economy.

According to an online poll conducted in November by the National Foundation for Credit Counseling (NFCC), consumers are much more concerned about paying down their existing debt load than they are with spending on holiday purchases.

More than 8,500 people responded to a Web poll, which asked “If you had an extra $500, would you…”

• Pay down existing debt – 77%
• Put it in savings – 14%
• Use it toward holiday expenses – 7%
• Spend it on yourself – 2%

A similar survey conducted in October by the NFCC showed that 68% of consumers intend to pay for their holiday purchases with cash, indicating that consumers are reluctant to charge.

The annual holiday survey from the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA) showed similar results:

• 43% of consumers said they intend to cut back their holiday spending, compared to 55% last year.
• The 43% figure is still much higher than in the previous eight years of 2000 to 2007, a period when the percentage intending to spend less never exceeded 35% and dipped as low as 21% (in 2002).
• A key reason for this intended spending restraint is how consumers assess their financial situation compared to last year. Far more consumers said their situation was worse (36%) than better (19%), though nearly half (44%) said their situation was about the same.

Just a little something to think about as we head into the holiday season.

The credit union philosophy of helping people versus making a profit is guided by the seven cooperative principles for credit unions. Today I would like to discuss one of those principles, Concern for Community.

Although Hopewell Federal Credit Union demonstrates our concern and commitment to the Licking County community in many ways, this week we had the opportunity to meet with our future – high school freshman. On Tuesday I staffed a booth with our new Marketing Director, Teresa Cennamo at Denison’s Mitchell Field House for the 2009 Licking County Career Fair presented by CTEC and the BCAC. The event was well organized and about 2,000 students and numerous businesses and professions interacted.

As the morning wore on, I realized what a unique opportunity this was for these students. I talked just about non-stop, but the students were eager to listen and eager to learn. They were learning what a day in the life of would be like. Questions like, “What do you do when you come into your office in the morning?”, “What sort of education and training did you need to get your job?”, “What is your biggest challenge?” and “What do you like the most about your job?” were asked repeatedly. The answers were often surprising for the students and prompted more questions. We talked about job opportunities, hard work and work experience, educational requirements and personal skills. “How did you get your job?” “Was this what you planned on doing when you were in high school?”

For many students it was an opportunity to meet with professionals they wouldn’t cross paths with in their daily lives. They could imagine and dream and plan what their careers would be like. It made their dreams seem realistic and possible, even at their young age.

Probably the most valuable lesson I taught them that day was the difference between a credit union and a bank, and I did that without saying a word – by taking the time to care about them.

Many local communities, municipalities, school systems and townships have come to Ohio’s credit unions looking to do business, but our current state law prohibits us from accepting their business. For example, the City of Heath could deposit funds in our credit union, but currently Ohio law won’t allow the city to do this. Credit unions are the only financial institutions in Ohio that cannot accept public funds. This just doesn’t seem right – does it? 

Legislation has been introduced in the Ohio General Assembly (House Bill 317) to correct this situation and allow credit unions to accept public deposits from the state, communities, schools and other public systems. Allowing these groups to make deposits in their community’s credit union will in turn make those funds available for lending to others in their local community.

Over the years, credit unions have grown within their communities and become very active members of the community. At Hopewell Federal we are active in the Licking County Chamber of Commerce, Rotary Club, Sertoma, Food Pantry Network and LICCO just to name a few. We are a great financial institution for our members now and will be a great financial institution for Licking County public systems too. 

Ohio can join two dozen other states like Indiana, Michigan and West Virginia along with the U.S. Government and allow credit unions to accept public deposits. The passage of this bill would also allow credit unions to participate in the Ohio Department of Development’s Minority Business Enterprise Program and Capital Loan Program for small businesses.

Please show your support for this bill by notifying your State Representative, Jay Hottinger at district71@ohr.state.oh.us or Dan Dodd at district91@ohr.state.oh.us.

We have just learned that the House Financial Services Committee may begin debating two bills that could dramatically affect overdraft protection. The most significant development is that both bills (H.R. 3904 and S. 1799) have the backing of key leaders in both chambers.                  

The most damaging provision in the bills is one that would limit the number of times a credit union member could access overdraft protection to once per month and six times per year.  

Please go to the Grassroots Action Center, http://capwiz.com/cuna, and send a message to your U.S. Representative and to Senator Brown urging them to oppose these two bills.

We also have letters available in our offices for you to sign that we will fax to the legislative offices.

This has been a very difficult year for the financial services industry, including credit unions. Credit unions have fared much better than banks. As of October 26th, 107 banks have gone out of business in 2009. In the same time period only 21 credit unions have gone out of business. 

You might ask, why have so many banks gone out of business compared to credit unions? I believe the answers are simple:

Credit unions focus on what is best for our member/owners (they aren’t just customers to us), while banks focus on what is best for their stockholders – at the expense of their customers.

• Credit unions did not get caught up in the secondary mortgage market like many banks, or chase the yield on risky mortgage products just to increase our income. 
• Our approach to lending and investing is tried and true. When you entrust us with your money we manage it as carefully as if it were our own money, because after all as a member/owner – we work for you.

I tell members that they should put safety first when investing their hard-earned dollars. Even if that means not getting the highest rate in the market place all the time. I also encourage members to ladder their investments at the credit union. Don’t have all of your certificates coming due at the same time; spread them out over time from short term to long term. You may pass up some short term yield, but in the long term I believe you will come out ahead. You can Google “ladder a certificate portfolio” on the Internet and get more information. 

Credit unions have received favorable press this year from many national organizations and news networks. If you are not a credit union member you may want to consider joining ours – we are open to anyone who lives, works, worships or attends school in Licking County.

 

On Thursday, October 16, International Credit Union Day, Hopewell Federal sponsored the Licking County Chamber’s Candidates Night at the Granville Inn.   About 70 individuals attended and the event was broadcast live on the local radio stations, 1430 WCLT and T-100 – the Newark radio stations.  As the sponsor of the event, we were given the opportunity to tell the audience a little about Hopewell Federal Credit Union.  Since it was International Credit Union Day, it made the event more special in my mind. You can hear the whole program by going to wclt.com.

 Here is my opening remarks for last night meeting.

 Today is International Credit Union Day, the day that credit unions take the time to celebrate the credit union difference and recognize the contributions that credit unions make every day in the lives of their members worldwide. 

 

Beginning in 1948, credit unions have come together annually on the third Thursday in October to commemorate the credit union movement’s history and achievements.  This year’s the event organizers have chosen the theme Your Money, Your Choice, Your Credit Union to anchor our celebration. 

 Your Money, Your Choice, Your Credit Union represents the many reasons why 177 million people worldwide choose credit unions for access to fair and affordable financial services.  This year, credit unions are especially proud of their repeated acclaim as safe and sound institutions and their continued service to members, even through difficult economic times.

 Hopewell Federal Credit Unions is just one of more than 49,000 credit unions in the world.  Today we join our fellow credit union members in 96 countries in celebrations.  With access to a safe, convenient place to save their money and secure affordable loans, members from all walks of life are able to create new opportunities for themselves. 

 Hopewell Federal opened its doors in 1962 with the vision to serve our members.  Since then, our goal has always been the same: To Help Members Get Ahead Financially.

 No matter where you are in the world, access to financial services is vital. Rich or poor, we all face similar challenges in life.  Together, credit unions are helping members overcome those challenges not only here in Licking County but throughout the world.  The credit union motto is and always will be “Not for profit, not for charity but for service”. 

 Al Smith