Mrs_Sweetpeach (mrs_sweetpeach) wrote,

  • Mood:

I have never been pissed off about free money before

We forgot to bring in the mail last night, so I got it out of the mailbox and brought it to work with me this morning. One of the things in there was a letter regarding DFCU Financial's 2007 Election of Directors. It's no surprise the credit union wants members to re-elect the incumbent directors, but as these are the people who wanted the credit union to convert to a bank, I don't trust their judgment.

This lead to a trip to DFCU Owners United's home page and the discovery that the credit union will issue each of its 160,000 members at least $50 in January. To quote from the article, "These are excess funds, which belong to the members and are being returned to them," said Bruce Gearns, a member of the credit union for 28 years. We're due this money, but there's some interesting questions about timing and what would have happened to this money if the credit union had become a bank."

My sense is that if the conversion had taken place, the $17.5 million going toward dividends would have disappeared. I won't refuse the money, of course, but I'm annoyed that the surplus exists in the first place. Most credit unions don't offer a dividend. Most choose to deliver financial benefits on a daily basis by offering higher interest rates on savings, lower interest rates on loans or fewer and lower fees.
Tags: credit union politics
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