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Arizona FCU's Membership Fee Breaks New Ground

Friday, May 3, 2013 - 7:14 AMArizona Credit Union - Details
From the Credit Union Times:
Since the $3 a month membership dues requirement was announced in last December, about 15,000 members closed their accounts, and some of them expressed their anger over the new fee on Facebook.

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I wrote about this new membership fee in this blog post. Why did the credit union decide to start this fee. According to the credit union's senior director of marketing:
Our entire purpose in doing this is to increase the percentage of members to actively use the services of the credit union and contribute to the cooperative

 
5
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Friday, May 3, 2013 - 8:55 AM
It appears many credit union members are actively using the services one final time to close their account. 

Me1004 brought up an interesting point (comment #2 in your blog post) - did the fee apply to members who had, for example, a 5-year CD?  As he pointed out, it's one thing to know about the fee upfront, but to have it imposed after the fact is unfair. 
5
pearlbrownpearlbrown1,431 posts since
Nov 2, 2010
Rep Points: 6,249
2. Friday, May 3, 2013 - 9:09 AM
me1004's point does highlight a risk for using credit unions for CDs. During the CD term, the credit union can add a membership fee (or increase it). I received no indication from Arizona FCU that members with long-term CDs could have this fee waived until the CD matures.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
3. Friday, May 3, 2013 - 9:50 AM
After reading the complete article, it sounds like a good deal for everyone.  This Credit Union gives everyone Indentity Theft and restortation services, and annual dividend, not every credit union does that, so that would me worth the $36 annual fee.  But then people should not have to keep that annoying $5 balance in the saving account...
1
dpandslemmendpandslemmen27 posts since
Feb 10, 2011
Rep Points: 117
4. Friday, May 3, 2013 - 4:42 PM
“Our entire purpose in doing this is to increase the percentage of members to actively use the services of the credit union and contribute to the cooperative,” said Steve Kelley, senior director of marketing. “We think [it is] an application of one of the seven cooperatives principles, members’ economic participation, [which] says members contribute to the capital of the organization, and this is an opportunity for our members to do that, to invest in the credit union and stand to reap the benefit of the returns that come from that investment.”

What patronizing and sneaky way of stealing money from their own loyal members!! 

If I want to invest in something, I will use my own discretion and invest as I like; not being forced to and cheated on by such a silly credit union. 

ID Theft coverage or not, this is highway robbery, especially for those long-term CD holders.

I certainly hope that these crooks are not opening a trend here.
4
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
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