What’s a Credit Union?
A credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to members. It is member-owned and controlled through a board of directors elected by the membership. The board serves on a volunteer basis and may hire a management team to run the credit union. The board also establishes and revises policy, sets dividend and loan rates, and directs certain operations. The result: members are provided with a safe, convenient place to save and borrow at reasonable rates at an institution which exists to benefit them, not to make a profit.
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Who owns a credit union?
Most financial institutions are owned by stockholders, who own a part of the institution and intend on making money from their investment. A credit union doesn't operate in that manner. Rather, each credit union member owns one "share" of the organization. The user of credit union services is also an owner, and is even entitled to vote on important issues, such as the election of member representatives to serve on the board of directors.
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How did credit unions start?
The first credit union cooperatives started in Germany over a century ago. Today, credit unions are found everywhere in the world. The credit union movement started in this country in Manchester, New Hampshire. There, the St. Mary's Cooperative Credit Association, a church-affiliated credit union, opened its doors in 1909. Today, one in every three Americans is a credit union member.
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What is the purpose of a credit union?
The primary purpose in furthering their goal of service is to encourage members to save money. Another purpose is to offer loans to members. In fact, credit unions have traditionally made loans to people of ordinary means. Credit unions can charge lower rates for loans (as well as pay higher dividends on savings) because they are nonprofit cooperatives. Rather than paying profits to stockholders, credit unions return earnings to members in the form of dividends or improved services.
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Are share deposits insured?
Yes. All share accounts are insured up to $250,000(until 12/31/2013 then it will revert back to $100,000), by the NCUA the National Credit Union Administration, an agency of the federal government. Recent Legislation has increased the coverage on certain retirement accounts, such as IRAs and Keoghs, up to $250,000.
For more information please stop in to one of our convenient locations or give us a call at (717)840-4981.
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Who can join a credit union?
A credit union exists to serve a specific group of people, such as a group of employees or the members of a professional or religious group. This is called a "field of membership." The field of membership may include where they live, where they work, or their membership in a social or economic group.
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Who should I contact if I fear my identity may have been compromised?
First, contact us and we will help you take the necessary measures to protect your Heritage Valley account.
You then may also want to contact the following agencies to request a free copy of your credit report to review for discrepancies and possibly add an alert to your credit report.
Contact List
For a Free Copy of Your Credit Report
Annual Credit Report Request Service (a service of the three credit reporting agencies)
P.O. Box 105283
Atlanta, GA 30348-5283
877-322-8228
www.annualcreditreport.com
To place a Fraud Alert on Your Credit Report (Call any one of the following. They are required by law to inform the other two)
Equifax
P.O. Box 740241
Atlanta, GA 30347
800-685-1111
www.equifax.com
Experian
P.O. Box 2002
Allen, TX 75013
888-397-3742
www.experian.com
Trans Union
P.O. Box 2000
Chester, PA 19022
www.transunion.com
To Report Identity Theft
See your Local Blue Pages for your Local Police Department or County Sheriff’s Department.
Federal Trade Commission (In all cases, particularly internet-related theft)
ID Theft Clearing House
600 Pennsylvania Avenue, NW
Washington DC 20580
877-ID-THEFT (438-4338); TTY 866-653-4261
www.consumer.gov/idtheft
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