Gathering will tout how depositors- not outside investors- benefit from owning their financial institution
JEFFERSON, WI (March 11, 2015) -- When Fort Community Credit Union (FCCU) holds its annual Meeting at 4:00 p.m. on March 19th in the Puerner Room in the Jefferson FCCU Branch, it won't be just a few investors sizing up their profits. It'll be a wide diversity of average working people celebrating the savings they receive by owning a financial institution where they borrow and save.
That's because credit unions, which are not-for-profit financial institutions owned by consumers, return profits to all of their accounts holders in the form of lower rates on loans, higher returns on savings and lower and fewer fees. The meeting is open to all FCCU depositors that FCCU serves in Dane, Dodge, Jefferson, Rock, Walworth and Waukesha counties.
All depositors, regardless of how much they have in their accounts, enjoy equal ownership of the credit union- a cooperative- whose sole purpose is to benefit the members who do business with them. The annual meeting gives each depositor, called a "member", one vote on who will serve on the board of directors plus other items that require a vote.
Giving all members a say ensures that the credit union's practices and policies favor members- a concept that's grown important to consumers disgruntled by the typically high cost of banking.
"The purpose of most lenders is to generate profits for shareholders. That's not the case with credit unions," said Jim Simdon, Executive Vice President and Vice President of Lending. "We're owned by our members, our board consists of local citizens elected from within the membership and their role is to ensure members' financial needs are met. That means we'll help people in ways that other financial institutions won't. Our annual meeting is where we celebrate the benefits of local ownership and give every depositor the kind of say in how they're treated- a say they don't have at banks."
Simdon explains that the annual meeting helps to ensure that the services consumers need are available even if they don't drive the bottom line- an effort credit unions call REAL Solutions. The effort helps consumers to save, avoid financial predators, access low-cost loans, and improve credit worthiness and build wealth.
For example, Simdon said FCCU, doesn't charge members for using ATMs- a service that can save a family that uses ATMs frequently hundreds of dollars per year. The credit union also makes low- interest loans for as little as $500 and sometimes even smaller to help make ends meet- an alternative to the debt traps caused by payday lenders. The credit union also gives a bonus dividend to members each year as a true way to show the power of giving the profits back to the members. Since 2007, the credit union has given over $1.76 million back to its members. The credit union also works individually with members who have suffered financial setbacks such as a job loss or illness so they can avoid foreclosure, maintain their creditworthiness and get back on their feet.
Collectively, Wisconsin Credit Unions returned more that $1 billion to consumers since the start of the Great Recession in 2007. The Scorecard for Wisconsin Credit Unions- at www.theleague.coop/scorecard- explains more.
About FCCU: Established in 1940, FCCU is a member-owned financial cooperative open to anyone living or working in Dane, Dodge, Jefferson, Rock, Walworth or Waukesha counties, any employee of this credit union and any member of the immediate family of any other eligible person. Fort Community holds over $200 million in assets and has more than 17,000 members. For more information, visit www.fortcommunity.com or call (262)473-2130.