Credit unions – Blog Campcee Fri, 04 Jun 2021 21:43:15 +0000 en-US hourly 1 Credit unions – Blog Campcee 32 32 Congress has repeatedly approved the structure of credit unions Fri, 04 Jun 2021 19:48:00 +0000

Credit unions, exempt from corporate taxes, contribute more than $ 17 billion in federal, state and local taxes.

Credit unions, exempt from corporate taxes, contribute more than $ 17 billion in federal, state and local taxes.

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We are in 2021. The country is still grappling with a global pandemic and its effects. There are millions of Americans unemployed, after businesses were forced to shut down, and more than 500,000 people in our country have lost their lives to COVID-19.

You would think all of this would lead Florida bankers to kick their boots and find a way to help the country recover. You would think that they are focusing on how they can set up more branches in underserved areas and take advantage of the fact that their profits soar despite scandals.

But in his May 5 editorial, “Biden, Congress must tackle the national debt before it brings down this nation,” Alex Sanchez, president of the Florida Bankers Association, targets credit unions, which are exempt from corporation tax.

But what Sanchez didn’t say is that credit unions are exempt from corporate tax because they are not-for-profit financial cooperatives. Credit unions, by virtue of their structure and the fact that they reinvest all of their income in their members and communities, remain tax-exempt entities. This exemption has been considered several times by Congress, most recently during comprehensive tax reform efforts in 2017. And, once again, Congress has spoken loudly, saying that credit unions continue to benefit from their tax relief. exemption every day. That same effort, the Tax Cuts and Jobs Act (TCJA) of 2017 resulted in an annual tax cut for U.S. banks of an average of $ 30 billion per year, or 15 times the size of the tax status of co-ops. credit.

In Florida last year alone, deposits in banks increased by $ 105 billion, 45% more than all deposits accumulated by Florida credit unions since they began operating in the United States. ‘State almost 100 years ago.

Also in 2020, Florida credit unions provided more than $ 637 million in direct financial benefits to 6.2 million members of state credit unions. That’s $ 103 per member and $ 215 per household. Florida credit unions managed to do this when they only had a 9.2% market share in Florida, slightly above the national market share of 7.9%.

Nationally, the tax status of credit unions is not an unfair advantage. Each year, credit unions contribute more than $ 17 billion in federal, state and local taxes. Members of credit unions pay more than $ 1.5 trillion in income taxes each year. Imposing an income tax on credit unions would generate enough revenue to run the government for just 2.7 hours. Instead, this money is used by citizens to buy tangible goods, such as houses and cars. It benefits the people and communities served by credit unions.

Sanchez wants everyone to believe that taxing credit unions is the solution to solving the national debt. It’s ridiculous – besides, the premise is wrong in math. If Congress imposed federal income taxes on credit unions, it wouldn’t increase the amount of money Sanchez thinks, and it would likely result in a deleterious change to the credit union system. It could end in a banking monopoly, which I’m sure Sanchez wants.

Finally, Sanchez says banks don’t have such tax-exempt status, but what he doesn’t say is that there are 21 subchapter S banks in Florida that don’t pay d federal corporate tax; instead, taxes are paid by shareholders, much like members of a credit union. If Florida banks were structured like credit unions, the $ 4.9 billion paid out in dividends to shareholders over the past decade would have benefited members instead.

If it is so easy to be a credit union, we urge all banks to convert their charters to credit unions, give up their billions in profits and join the movement of people who help people.

Jared M. Ross is President of the League of Southeastern Credit Unions & Affiliates.

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Iafrate de Midland appointed to the Board of Directors of Credit Union Trust Fri, 04 Jun 2021 09:10:14 +0000

Credit Union Trust has appointed Carria Iafrate and Dana Tell to its board of directors. The appointments include:

Iafrate is Executive Vice President of Members First Credit Union headquartered in Midland. Tell is the executive of the holding companies of Team One Credit Union, headquartered in Saginaw.

“They are two extremely committed and respected representatives in their credit unions and in their Michigan regions, and we are delighted to have them as advisors and partners,” said Ron Lauren, Chairman of the Board of Directors of Credit Union Trust. “They bring strategic direction and valuable energy to our Board of Directors which serve Credit Union Trust very well.”

“I am honored to join other distinguished credit union owners and other members of the credit union board of directors,” said Iafrate. “This opportunity matches my love for the credit union movement and my passion for strategic leadership. We made history in Michigan; come together to provide our members with trusted family services. I look forward to working with my peers to lead the work of Credit Union Trust in our communities.

“I am truly touched and delighted to join the Board of Directors of Credit Union Trust Bank,” Tell said. “Credit Union Trust is well positioned to provide trusted services throughout the State of Michigan with a team of experienced industry leaders and I look forward to being a part of this great organization. “

Iafrate and Tell are replacing the CEOs of their respective credit unions, who were part of the original board formed in 2018 and helped launch Credit Union Trust.

Credit Union Trust is a limited-use trust bank established in 2019 by seven Michigan credit unions to provide reasonable, reliable, and accessible trust and trust services to a wider range of people – helping them protect their assets, build desired heirlooms and to enjoy peace of mind. .

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Credit unions add Apple Pay to their checking account offering Thu, 03 Jun 2021 13:58:00 +0000

Credit unions that offer checking accounts have added Apple Pay to their services.

The move comes as one of the state’s major credit unions has decided to no longer offer its members the option of a checking account.

Savvi Credit Union’s decision to drop its current account offering is seen as a blow to the industry to roll out current accounts along with debit cards.

It comes as credit unions are set to advocate for thousands of Ulster Bank current account customers to register with them, through the brand.

Savvi chief executive Mark Beirne said the current account option was weak among members.

He said a review of the lender’s offer and member feedback led to the decision to shut down current account services from next January and focus on mortgages and SME lending. It would still offer online banking, he said.

The credit union has 23,000 members and was formed by a merger of lenders serving BSE workers; people who work for Mediahuis Ireland, the Independent Irish editor; with the credit union for Irish weather Staff.

It has assets of 380 million euros and saw its surplus increase by 15% to 303,000 € last year.

Other credit unions are said to be ready to launch the checking account, which comes with a Mastercard debit card, through the brand.

Forty-five of the state’s largest credit unions are now registered to offer the account, with approximately 50,000 accounts opened.

The brand already offers Google Pay and Fitbit Pay, as well as debit cards, online banking and a mobile app. It has now added Apple Pay for those with an iPhone or Apple Watch.

Seamus Newcombe of said that Apple Pay is a secure, private payment method that eliminates the need to hand over a debit card to someone else, touch physical buttons, or redeem money. ‘silver.

Members of participating credit unions hold their iPhone or Apple Watch near a payment terminal to make a contactless payment.

He said every Apple Pay purchase is secure because it is authenticated with Face ID, Touch ID or a device password, as well as a one-time, one-time dynamic security code.

Five other credit unions have signed up to offer the checking account, according to Mr. Newcombe of, which was set up by the credit unions to provide the checking account.

Licensed by the Central Bank, the credit union checking account offers a Mastercard debit card, free point-of-sale and contactless payments, free standing orders and debit processing, and mobile and internet banking services.

There is a monthly fee of € 4, which financial experts said was the best value on the market.

There is also an overdraft facility, but credit unions do not charge additional interest on unauthorized overdrafts.

Mr Newcombe said his organization and member credit unions will advocate for some of the 500,000 checking accounts that are expected to be closed when Ulster Bank closes.

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Credit Union Expands FOM in Southeast Massachusetts Wed, 02 Jun 2021 21:36:07 +0000

Map of Massachusetts. (Source: Shutterstock)

Taunton Federal Credit Union, Taunton, Mass. announced Tuesday that the NCUA has expanded its community charter to include two more counties in southeastern Massachusetts.

Taunton FCU ($ 231.2 million in assets, 18,561 members) won the counties of Plymouth and Barnstable with the NCUA ruling.

The credit union now has two branches in Bristol County and plans to open a third later this year in Taunton County Headquarters. It has also had a branch in Middleboro, Plymouth County since 2012.

In 2015, the Taunton FCU Community Charter was expanded to include all of Bristol County and most of Rhode Island. But, in the process, he lost the county towns of Plymouth, Middleboro and Lakeville. From 2015 to today, the Middleboro site has acted as a service branch.

Taunton FCU’s membership field now includes all of Plymouth and Barnstable counties where NCUA data shows there were 30 branches of credit unions as of December 2020. It is a fractured area with most of the branches being six owned by Sharon & Crescent United Credit Union of Sharon, Mass. ($ 1.2 billion in assets, 78,527 members).

In Rhode Island, Taunton FCU’s scope of membership includes four of the state’s five counties: Bristol, Kent, Newport, and Providence. In the fifth, Washington County, it includes the cities of Charlestown, Exeter, Hopkinton, Narragansett, New Shoreham, North Kingstown, Richmond and South Kingstown.

NCUA data shows credit unions had 80 branches in Rhode Island as of December. The credit unions with the most were Navigant Credit Union of Smithfield, RI ($ 2.9 billion in assets, 113,855 members) with 22 branches and Pawtucket Credit Union of Pawtucket, RI ($ 2.7 billion in active, 127,057 members) with 17 branches.

In his Bristol County home, NCUA data shows 60 branches of credit unions at the end of 2020. St. Anne’s of Fall River Credit Union in Fall River, Mass. ($ 1.3 billion in assets, 56,488 members) had the most branches, 10, followed by seven branches of the First Citizens’ Federal Credit Union of Fairhaven, Mass. ($ 885.9 million in assets, 78,744 members).

Last year, Taunton’s membership increased 3.7%. It issued $ 78.3 million in loans in the 12 months ending Dec.31, up 30.9% from 2019.

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Consumer interest in financial protection altered by pandemic experience Wed, 02 Jun 2021 04:10:49 +0000

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Holidays, layoffs and general economic uncertainty due to Covid have left consumers understandably worried about their finances. Research conducted by CUNA Mutual Group before and after the onset of the pandemic indicates that as stress continues to mount, consumers are increasingly aware of and interested in financial protection.

Consumer sentiment before the pandemic

At the end of 2019, CUNA Mutual Group studied consumer knowledge about financial protection products (Understanding Preferences for Lending Decision Making). This pre-pandemic study indicated that people’s awareness of financial protection and their likelihood of purchasing were low.

Limited consumer awareness

Among those who recently took out a loan, less than half (48%) of respondents were “very” or “somewhat” familiar with financial protection options and 27% said they were unfamiliar with them at all. Of those seeking or planning to obtain a loan, 37% were “very” or “somewhat” familiar, but almost as many (30%) did not know.

Factors of interest in financial protection

Those who saw the potential value of financial protection tended to:

  • Safety first
  • Have more valuable vehicles or larger loans
  • Have previous experience
  • Be more likely to value insurance
  • Be more likely to have had the product offered during the loan process or to have had to purchase protection to get their loan.

Those who bought or intended to buy financial protection felt they got their money’s worth, liked the idea of ​​protection, and / or expected future uncertainty. Those who had not chosen protection on a recent loan or had no intention of obtaining it in the future found it too expensive, did not see the need or were not offered the product.

Consumers with concerns about their loan payment had similar concerns

Even before the pandemic, people who worried about their ability to repay their loan – whether they already had a loan or were looking for one – had the same two concerns: unforeseen costs and changes in their lives.

How has the Covid-19 pandemic affected consumer sentiment in terms of financial well-being and financial protection? We will take a look.

The pandemic has increased consumer anxiety

As the pandemic began to sweep the country at the end of the first quarter of 2020, American consumers were understandably worried about their jobs, livelihoods and finances.

Low awareness of early efforts of banks and credit unions

Traditional financial institutions have attempted to meet the growing needs and anxiety of consumers by rapidly improving their products and services. A survey conducted by CUNA and AACUL (American Association of Credit Union Leagues) in spring 2020 showed that most financial institutions offered loan modifications (95%), waived / reduced fees (90%) and created new loan products to meet people’s needs. needs (86%).

Unfortunately, given the fluid nature of the pandemic, people initially seemed unaware of these options. Research by CUNA Mutual Group in May 2020 found that many clients and members either did not tap into these resources or believed that financial service providers could not or would not provide the support they needed.

Subsequent research in November 2020 uncovered information on how consumer awareness and attitudes towards financial protection opportunities had changed since the pandemic began earlier in the year.

Main financial concerns: bills, job / income security and retirement

When asked to provide an open-ended response to the question “What’s your biggest financial worry right now?” 18% of respondents place the ability to pay their bills at the top of the list, followed by job / income security and retirement, closely followed by a variety of other finance-related topics.

Additionally, nearly half (49%) of people were concerned about their ability to pay their bills over the next 90 days – a level that was roughly stable throughout the year according to previous research. mutual CUNA conducted in May and August 2020.

More financial worries are the main fears related to Covid

In November 2020, several financial issues (retirement, money and economy / scholarship / government programs) were identified as more concerning than Covid-19 for the first time in 2020.

Main financial concerns of members May-November 2020

Growing appeal of financial protection insurance

As consumers faced the new financial realities created by Covid-19, they became increasingly interested in protection on a new loan. In fact, research conducted in May, August and November 2020 showed that consumer interest rose from 69% to 76%.

Interest of members and perception of financial protection

It is also important to note that, along with their growing interest, people’s perceptions of financial protection have become positive. Over half (53%) of consumers viewed financial protection insurance as “good financial planning,” a sentiment that grew steadily over the year.

Consumer stress and consumer loyalty

Research over the past few years has provided insight into the impact of anxiety on banking relationships. CUNA Mutual Group research from 2020 showed the importance of addressing the financial anxiety of customers and members: When asked to rank their customer service experience (CX), non-anxious consumers were more likely to give their primary financial institution (PFI) higher ratings than the anxious.

Higher financial anxiety leads to lower loyalty ratings

Research has also shown that the high anxiety / low customer experience relationship exists between product types.

Opportunity for Financial Institutions: Alleviate Anxiety, Deepen Relationships, Grow Business

As the effects of the pandemic are likely to be felt for the foreseeable future, the stress of financial uncertainty will continue to impact people. However, these challenges present an opportunity for banks and credit unions to step up their game. Here are some strategies to consider:

  • Make protection products available to consumers: The best options provide essential peace of mind for vulnerable consumers and can help improve relationships between individuals and financial institutions. As a secondary benefit, protection products can generate non-interest income.
  • Use a multi-channel approach to educate consumers about their protection options – before a loan event: Most protection products are linked to a loan; the average customer or member probably doesn’t know they exist. People tend to need limited exposure to understand the benefits of the product, and actively promoting protection offers – outside of a loan event – could increase the bank provider’s loan portfolio. Consumers who had not applied for a loan before because they feared they might encounter one of the issues the products protect against might reconsider their decision.
  • Ensure staff understand how protective products benefit consumers: Employees of banks and credit unions are outstanding advocates for customers and members, and are naturally wary of products that do not offer clear benefits to consumers. Make sure staff at all levels are familiar with the benefits of protection products and are trained to have consultative conversations with people, especially during the lending process.

The economic uncertainty induced by the pandemic has increased stress levels for consumers. But these difficult times also open our eyes to the availability and value of financial protection. If you aren’t already doing so, now is a great time to educate your clients and members about the many ways your financial institution can help them protect their financial well-being. They will feel more secure and you will build deeper relationships and ultimately grow your lending business.

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Customer Service Mistakes Financial Institutions Should Avoid Tue, 01 Jun 2021 10:00:35 +0000


2020 has been a tumultuous year for financial institutions (FIs), from regional and national banks, to credit unions and commercial banks. But it has brought customer service back to the forefront of the business planning agenda for 2021 and beyond. When planning and prioritizing your initiatives, it’s important to avoid mistakes. Here are a few to consider.

1. No pandemic, no digital
When the pandemic hit us all in early 2020, many financial institutions had to close their branches or reduce their hours of operation due to lockdowns. Consumers – and many bank employees as well – have opted for contactless interactions (also known as digital) to avoid getting infected.

In a survey conducted by Dimensional Research, 80% of consumers said they had increased use of digital customer service since the start of the pandemic.

This megatrend has forced financial institutions to strengthen their digital customer service capabilities.

  • A BAI study found that more than 50% of consumers have increased the use of digital channels even for more complex transactions such as loan applications since the start of the pandemic and 87% will continue to do so after the pandemic.

The FIs will do well to remember this, as they launch customer engagement initiatives for 2021. As Forrester says, “this digital genius doesn’t come back in the bottle”. In fact, Forrester predicts that digital customer service interactions will increase by 40% in 2021. The answer? Keep pressing that digital accelerator pedal!

2. Application for this, application for this
Despite sustained evangelism by industry experts, many FIs still take a piecemeal approach to implementing customer service channels. Some of them rushed to add a chatbot to handle the COVID-related spike in customer service traffic, without making sure the chatbots are connected for context and continuity with other touchpoints. Others are deploying messaging silos.

While banks have offered channel choice to their customers, the silo syndrome will only get worse in 2021. For example:

Forrester predicts that companies will increase the number of customer service channels they deploy from 8 to 11 to encompass a wider range of asynchronous messaging channels, introducing more silos than ever before.

Having to repeat information between contact points remains one of the main problems in obtaining good customer service.

  • What customers want is a true omnichannel banking experience that will allow them to seamlessly switch between physical and digital channels – 60% of consumers surveyed in an Accenture study said so.

Take a unified hub approach to your customer service initiatives to break down silos.

3. We hire smart – no knowledge base needed
Connecting with customers is only the first step in customer service. In fact, it is better not to connect with customers than to connect and not offer the solution or the advice they are looking for.

  • 67% of consumers in a Forrester survey said customer service agents at banks gave inconsistent answers or didn’t know the answer.

As self-service systems become smarter (which also requires knowledge), agents receive more complex resolution or advice requests from customers. That’s why a rich knowledge management (KM) solution is vital.

Make sure the solution goes beyond just dumping raw content on the client, to include ease of finding answers and conversational guidance for both customer self-service and human-assisted service. Equally important is that the same knowledge base is leveraged across all customer touchpoints to ensure consistency and regulatory compliance, which is often not the case.

  • In the aforementioned Dimensional Research consumer survey, 44% of bank consumers complained that they got different responses from chatbots and human agents, which reduced confidence in the ability to service to clientele of institutions.

Once you’ve solved customer issues with insights, be sure to optimize your service operations and knowledge base with analytics!

4. Customer service is unique
Yes, many customer service interactions are ad hoc, but forward-looking financial institutions are starting to take advantage personalized, proactive and lifelong commitment with clients to help them achieve their financial goals and expand their share of the portfolio. A good example is our Virtual Financial Coach ™ a solution that helps banks, financial services and insurance companies deliver personalized wellness advice at scale and proactively motivate them to stay on track to their wellness through automated messaging over time.

5. Toolboxes are pretty good
Some vendors tick all of the boxes in the RFP response, but look under the shiny covers and you will find that you need to build capabilities from scratch with a toolkit! It takes time and resources you can’t afford as the pressure to accelerate digital transformation escalates. The answer? Look for solutions that deliver rich, out-of-the-box functionality and a rapid return on investment.

6. Business value is an asset
According to McKinsey, less than 15% of companies can quantify the impact of their digital initiatives. Beware of vendors who cannot measure the success of their deployment. And stay away from the big iron sellers who promise to solve world hunger in five years, while putting your wallet on a drastic weight loss plan!

Let’s take AI to illustrate this point: Gartner says it takes an average of four years for companies to get their AI solutions up and running, not to mention their ROI.

Ask: What is the supplier’s approach to digital value creation? What is the typical recovery time? What return on investment can they register? Can they provide customer success stories?

7. The answer is only technology
As you evaluate solutions, look for vendor partners with proven customer service expertise. Technology is clearly important but also best practices for rapid business value and successful deployment. You don’t want a solution partner to learn your way!

8. On par with usual suspects
Financial institutions often make the mistake of simply comparing their customer service operations to those of their industry peers. However, today’s digital consumer expects you to perform as well as digital customer experience leaders like Amazon and Uber to deliver smart and easy experiences.

  • In fact, only one financial institution ranked in the top 5% of 13 leaders in the Forrester CX Index 2020and direct-to-consumer digital banking fell slightly in 2020 compared to 2019.

Plan to match the digital giants in customer service before your peers!

2021 is a year of transition, and experts predict a return to normalcy only in the fourth quarter of the year. Taking a digital-centric approach, while avoiding the above mistakes, will put you in a strong position to retain and develop your customers in 2021 and beyond.

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Letter: Thank a Lender Today Mon, 31 May 2021 17:00:00 +0000

In April 2020, the federal government introduced the Paycheque Protection Program, a new $ 349 billion program to keep workers employed, keep businesses open, and help the economy recover as quickly as possible. . Within hours of the announcement, North Dakota lenders were filling my inbox with requests for additional information, eager to do their part in serving our state’s small business community.

Their commitment has never ceased. Over the past 15 months, our state’s banks and credit unions have stepped up to work long hours connecting small businesses with much needed capital.

Our staff have countless examples of lenders contacting our office to discuss program guidelines in the hopes of maximizing benefits for one of their clients. At 1% interest, these lenders don’t make much profit, especially for the work they put into some of these transactions. They go out of their way to help their clients be more successful.

Our combined efforts have been incredibly successful. In North Dakota alone, lenders have approved more than 50,000 loans, providing assistance of about $ 2.8 billion through the Paycheck Protection Program.

Governor Burgum has declared May as the month of thanks to the bank or credit unions, and I could not be more sincere in my appreciation for the individuals and institutions who partner with the Small Business Administration for provide resources to small businesses. Without the lending community and their tireless partnership, we would not have been able to support our business community with the tenacity and effectiveness that has been a game-changer for business owners and entrepreneurs in our state.

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Al Haut is the director of the North Dakota district office of the US Small Business Administration.

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Are banks open on Memorial Day 2021? Sun, 30 May 2021 15:28:51 +0000

With coronavirus cases falling and 1.8 million U.S. residents vaccinated every day, more Americans are planning this next Memorial Day weekend to rediscover old pleasures like friends, parties, trips and afternoons at a ball game.

They will also encounter something new and less enjoyable: rising prices. Prices are expected to continue to rise for much of the summer, driven, among other things, by bottlenecks limiting the supply of materials and labor and by growing consumer demand.

Sin titulo A Boy Scout places American flags on graves ahead of Memorial Day in Los Angeles National Cemetery in Los Angeles, California on May 29, 2021. – The “Flags In” tradition takes place before Memorial Day that honors the military died while serving in the military. (Photo by Agustin PAULLIER / AFP)

Memorial Day Sales

Memorial Day sales are a lasting feature of the summer three-day opening weekend, with deals on big-ticket items like washing machines and mattresses. But with rising demand, rare parts and low inventories, durable goods prices were up 7.5% from February 2020.

Airfares have also increased for those looking to get away for the weekend with a big hike recently, including a 10% increase from March to April., airfares are still 18% lower than pre-pandemic levels, which means a plane ticket costs today about what it could have done about 15 years ago. Accommodation

Investing in Memorial Day 2021

Those hoping to get into their local banks on May 31 will not have luck with all major banking institutions and credit unions closed on Memorial Day 2021. Online banking and ATMs will still be active and customers should remember that while you can make a deposit at Remember, it is not considered a business day and the trade will not be published until June 1.

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Paycheck Advance apps: Reading the fine print Sun, 30 May 2021 05:58:01 +0000

Paycheck advance apps allow users to borrow a small amount of their expected income, usually for a small fee, and repay it on their next payday.

It sounds like a great deal if you need some extra cash between paychecks, and millions of users have accepted it. While it is possible to use these apps without harming your finances, some consumer advocates say they can lead to a cycle of debt.

If you’re considering using a paycheck advance app, here’s what you need to know before you download.

When Jose Polanco uses the Earnin app to borrow against his next paycheck, the app asks if he wants to leave a tip.

The school administrator says he gives the app $ 8 for the $ 100 he usually borrows. He says he’s convinced by the app’s message that leaving a larger tip helps pay users who can’t afford to tip at all.

Optional tips are a common way for these apps to reframe fees. Although they are generally not mandatory, they are often encouraged.

Earnin CEO Ram Palaniappan explains that tips allow the user to decide the value of the service to them rather than charging a fee that they might not be able to pay.

Some advances are accompanied by additional fees. Dave, another paycheck advance app, has three optional fees: a $ 1 monthly subscription, an express fee to get your money faster, and a tip.

For a few hundred dollars – the maximum amount you can borrow from most apps – the fees aren’t as high as most payday loans or overdraft fees.

But asking the user to decide how much to pay doesn’t give them the ability to assess the total cost of the loan like an annual percentage rate would, says Marisabel Torres, California policy director at the Center for Responsible. Lending.

“Not calling it a fee and presenting it as a tip is actually dishonest for the user because then it is confusing how much this product is actually costing you,” she says.

To sign up for a paycheck advance app, users normally need to provide proof of their payroll schedule and income, and often access their bank accounts so that the app can withdraw the money. ‘they owe when they get paid.

Some apps say they will monitor your bank account and try to avoid a debit if your balance is too low. Debiting too low a balance can result in overdraft fees – a fee that some apps sell as an alternative – and you may need to borrow again.

It is not yet clear how often the use of the apps triggers overdraft fees, says Alex Horowitz, senior research officer at Pew Charitable Trusts.

But an April report from the Financial Health Network found that 70% of consumers who used a service to access their income early returned to use it consecutively – a common behavior with payday loans, he says.

“It’s not just that they use it several times a year, it’s that they use it several times in a row,” says Horowitz. “This indicates that they couldn’t pay it back without taking another advance soon after to cover their bills.”

You may have cheaper alternatives if you need to borrow money, Torres says.

Credit unions and some banks offer small loans that are repaid in affordable monthly installments. A friend or family member may be able to lend you money and allow you to pay it back over time.

There isn’t enough research to know whether getting a lead from an app improves or weighs consumers down, says Nakita Cuttino, a visiting assistant professor at Duke University School of Law whose research focuses on financial services and financial inclusion.

In 2019, the New York City Department of Financial Services – along with several other states and Puerto Rico – announced an investigation into the Earned Wage Access industry, of which these types of apps are a part, to determine if they violate state loan laws.

When used to resolve a one-time emergency, Cuttino says, an advance can be cheaper and more convenient – and reduces the risk of excessive borrowing due to their low dollar amount.

If you borrow from any of these apps, understand how it will affect your budget and plan to pay it back, she says. And if you find yourself borrowing every pay period or having to pay overdraft fees frequently, this may not be right for you.

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UKRAINIAN CREDIT UNIONS ASSETS GROW IN Q1 Sat, 29 May 2021 13:29:58 +0000

The assets of credit unions in January-March 2021 increased by 1%, to 2.355 billion UAH, according to a review of the non-bank financial sector published on Friday on the website of the National Bank of Ukraine (NBU).
According to the review, the number of registered credit unions at the end of the first quarter of 2021 was 316, down 1.9% from the end of 2020 and 5.8% from the end of the first quarter of 2020.
The liabilities of credit unions since the beginning of this year have increased by 0.2%, to 1.29 billion UAH, including the amount of liabilities, on which interest is accrued, by 0.8%, to 1.19 billion UAH.
The income of credit unions in January-March remained at the level of the first quarter of last year and amounted to 220 million UAH, while expenditure fell 22.3% to 209 million UAH. UAH.
Credit union income was related to a decrease in payments to loan loss provisions, as well as a decrease in the ratio of operating expenses to operating income.
Equity of credit unions for the first quarter of 2021 increased 52.6% to UAH 1 billion.
As the NBU has said, the unsatisfactory financial performance of credit unions leads to a significant number of violators of the requirements. In particular, in January-March, nine credit unions violated capital requirements.


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