Is a Credit Union Better Than a Bank?

Is a CU better than a bank? Jack Otter of CBS Moneywatch weighs in…

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Celebrate International Credit Union Day: Local Beginnings Bring Global Change

The credit union idea arose centuries ago as people worked under a common effort without thought of profit – they put out fires, harvested crops, and avoided high-priced loans by lending to one another.

In the 1850s, hard times hit Germany, and people turned to each other for help. They removed small savings from under mattresses and made reasonably priced loans to one another, forming the original credit unions. In the 1920s, Edward Filene took cooperative finance to the next level in Boston, as a means of lifting working people out of debt and creating a better life.

On January 17, 1927, the Credit Union League of Massachusetts celebrated the first official credit union holiday. January 17th is the birthday of Benjamin Franklin, America’s “Apostle of Thrift,” who credit union founders believed to symbolize the purpose and spirit of credit unions. During this time, the credit union movement was new and spreading. People involved only began to recognize the celebration’s significance and were unable to devote the time required for sufficient planning. Credit Union Day quietly faded away.

The U.S. Credit Union National Association (CUNA) and CUNA Mutual Insurance Society initiated a new national Credit Union Day celebration in 1948. The third Thursday of October was set aside as the national day of observance. This occasion brought members together to promote the credit union philosophy nationally and reflect upon credit union achievements and history. Members raised funds for the movement and paid homage to loyal supporters and pioneers.

The World Council of Credit Unions (WOCCU), established in 1971, assists credit union movements and supports their development around the world. WOCCU observed the first International Credit Union (ICU) Day more than 30 years ago, and continues to endorse global celebrations. The credit union movement has grown to 188 million members in 100 countries. Celebrate the credit union difference during this year’s ICU Day – October 18, 2012.

New Cybercrime Trends Developing

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While cybercriminals focus on making a fast buck with email, texting, and phone frauds designed to capture consumers’ account numbers, other cybercrime trends are worth noting. Several new ones are featured in the Internet Crime Complaint Center’s (IC3) August 2012 scam alert. They include:

• A multi-choice “political survey” is taking advantage of consumers during the election year, according to IC3, which is a partnership between the Federal Bureau of Investigation and the National White Collar Crime Center. The scam involves telephone calls to consumers. After answering the survey, they’re told they’ve won a free cruise to the Bahamas. The caller, after providing a website address to “prove legitimacy,” requests the “winner’s” email address for notification purposes and credit card information to cover port fees. The website has limited information, with photos, testimonials, and “Caribbean Line” banner.
• Online phonebook. IC3 received several complaints about a phonebook website, where anyone could post other individuals’ information.  Some were verbally bullied—seeing uncensored comments and false accusations posted about them. Personal information available on the site included full name, unlisted cell phone numbers, email addresses, direct links to private Facebook accounts, photos, and more. The website allowed users to anonymously call anyone on the site directly from the Web, as well as to track them with a global positioning system.
• Free credit service website.  A website claiming to offer free credit services such as credit scores and credit monitoring generated more than 2,000 complaints to IC3. Customers reported being charged a monthly service fee. The agreement terms advise that the “free” report lasts only for a limited time. At the end of the term, the website, using financial information the customer provided, charged a monthly membership service fee ranging from $19.95 to $29.95. The Better Business Bureau (bbb.org) has given the website an F rating because 1,037 complaints were filed against the business, eight were not resolved, 17 were deemed serious, and advertising issues were involved, according to IC3.

Hopewell Federal Credit Union is committed to preserving your privacy and security.  Please remember…Hopewell Federal and its affiliate partners will NEVER request your sensitive account information via text, phone or email.   We are here to assist you if you have questions or feel you have been victim of a cybercrime.