Thursday, August 23, 2018

Altura Credit Union Provides Emergency Loans to Non-members

Altura Credit Union (Riverside, CA) is providing emergency loans to members and non-members affected by the Holy Fire.

According to the credit union's website, the emergency loan to non-members has:
  • an interest rate of 5.99 percent;
  • a maturity of 18 months;
  • no pre-payment penalty;
  • no loan processing fee; and
  • no payment for the first 90 days.
But credit unions are only supposed to serve their members.

So, how can this credit union provide loans to non-members?

15 comments:

  1. Don't let the federal NCUA regulations cause you concern. The federal regulations are only recommendations. The NCUA does selective enforcement of regulations. Look at Melrose FCU, Progressive FCU, etc. The regulation on concentration risk was not enforced. Not a member? Who cares. Get in line. Fog a mirror. Get a loan.

    ReplyDelete
  2. As a community credit union, most of the fire victims would be eligible. Altura could pay for the membership fee as permitted under California state law. Thus, it would make the loan to a member.

    ReplyDelete
  3. “Wells Fargo fires 5,300 workers for opening millions of fake accounts.” Keith....Silence

    “Wells Fargo fined $1 billion for selling more than 500k clients auto insurance they didn’t need” Keith....Silence

    “B. of A. pays $430 million in a settlement for misusing customers’ cash” Keith…Silence

    “U.S. Bank pays $200 million for banking fraud case” Keith....silence

    “Altura Credit Union is providing emergency loans to members and non-members affected by the Holy Fire” Keith....Oh the humanity!!! How dare they provide emergency short-term loans to non-members in their community impacted by a devastating fire!

    ReplyDelete
    Replies
    1. You are changing the subject. Rather than discuss the issue of emergency loans to non-members, you would rather talk about fines paid by large banks.

      Delete
    2. No Keith, I'm pointing out you and your industry's lack of benevolence. You're so caught up in your talking points, you forget that real people, with real problems are being offered assistance during their time of need. To use this disaster, and a credit union's willingness to help, as a platform to advance your anti-credit union rhetoric is pathetic. It does however, provide an excellent example of just how low bankers will go in their efforts to demonize credit unions.

      Delete
    3. Not following your logic - you want a blog titled "Credit Union Watch" to report on bank news? Also, you don't get to change the rules on your own because of an external event, even for a good cause

      Delete
  4. Perhaps if local banks stepped up to help their neighbors in need, the Credit Union wouldn't have to offer these loans?

    Perhaps they are offering them thru their CUSO, a taxable C-Corporation?

    Sounds to me like they are fulfilling their mission of serving the underserved.

    ReplyDelete
  5. Members get this loan per the website at 0.0% interest. The non-member pays 5.99%. Seems the credit union wants the interest income over the lousy $5 membership fee. Stick it to 'em. Lost your home? Pay the loan. Not member service. But they are not members.

    ReplyDelete
    Replies
    1. No. But the non-members did not contribute to the success and net worth of the credit union. Thus the zero percent to members is an acknowledgment of the contribution. Next time, these new members will get the membership benefit.

      Delete
    2. just love the cu logic of "contribute" to success and nw of the cu. as if members care and as if they do it because they care.
      if altura was so altruistic, they would club the non member by 599 bps over the member. 199/299 maybe.
      you need to join grandmaster b and his delusional silliness in the cu graveyard.
      proven before in this blog to be brainwashed, grandmaster b shows up to repeat without thinking the cu propaganda.

      Delete
    3. Join the credit union 1 week before the fire and you qualify for a 0.0% interest rate. WHY? Because you contributed to the credit unions success. Join the credit union 1 week after the fire and you qualify for a 5.99% interest rate. WHY? Because you did not contribute to the credit unions success. Brilliant. How do you say: extortion? Marketing genius. Shakedown.

      Delete
    4. Not exactly sure how running non-member business thru a taxable CUSO is propaganda or silliness...always enjoy the enlightened conversations here!

      Delete
    5. Credit unions are financial cooperatives. That is how the contribution goes.

      Delete
  6. credit union memberAugust 28, 2018 at 11:13 AM

    The distinction lost on most posters here is following the rules. When rules are selectively enforced, the rules lose meaning, and create injustices. In this case a small injustice, but still an injustice nonetheless.


    I had a credit union president tell me just today that it is the law to require a person to be within the field of membership for any credit union.

    The NCUA has an inherent bias for credit unions, unjustly allowing them to violate the rules of both NCUA and the CU.

    ReplyDelete
    Replies
    1. Exactly.
      NCUA acts like a trade association not a regulator.
      Perhaps because there is no effective trade association or perhaps because the NCUA is focused on remaining an independent regulator, or both.

      Delete

 

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