“Move Your Money” to Credit Unions in Dublin, CA
Bank customers in Dublin, Pleasanton, San Ramon, Livermore, and the rest of the United States are fed up and have had enough. The proverbial straw that broke the camel’s back was the recent announcement by big banks like Bank of America to collect additional fees from millions of their debit-card users. Although these banks have backed away from the proposed fee hikes as quickly as Netflix had abandoned the ill-conceived Qwikster service, the anger many of their customers feel continues to rage.
When the new banking regulation took effect October 1st, merchants had expected to accrue some cost savings on debit card transactions, which cost less than credit card transactions. Large banks have long warned that they not going to absorb the loss from the reduced fees, which were estimated to be about $6.6B in annual revenue. To make up the difference, the big banks hinted that they may have to get their pound of flesh from the consumers.
Under the new Federal banking law, interchange fees on debit card purchases are now being capped at no more than 21 cents per transaction, plus 0.05% of the purchase price and, in most cases, an extra one cent for fraud prevention. Many banks terminated rewards programs associated with debit cards and promised increased fees for use of debit cards. Bank of America announced a $5 monthly fee for making purchases with a debit card starting 2012. Wells Fargo and J.P. Morgan Chase also announced tests of a $3 monthly fee for debit card use. In response to the widespread ensuing public outrage against the big banks, all three have since backed down from the proposed fee hikes. Still, consumers are tired of the ever-increasing fees and stingy lending practices by Bank of America, Wells Fargo, Chase, and other large banks. Many are fleeing the larger banks in favor of the smaller credit unions.
A credit union is a cooperative financial institution owned and controlled by members. Many credit unions exist to provide credit and other financial services to their members with the ultimate goal of furthering local community development. Dublin currently has five different credit unions within its city borders.
Kristen Christian, the California small-business owner who started the Bank Transfer Day campaign on Facebook, said she has no connection to Occupy Wall Street. According to the event’s Facebook page, Christian “believes we can pull ourselves out of this economic mess the big banks caused by investing in local not-for-profit credit unions.”
The Progressive Change Campaign Committee, one of several groups that promoted Saturday November 5th as Move Your Money Day, did not hesitate to draw such a link. “The reason why it’s caught fire across the country is because of the change in conversation that Occupy Wall Street has inspired,” said spokesman Neil Sroka. “We’re actually talking about things like income inequality…and the degree that big banks have control.”
Move Your Money, a movement that encourages consumers to cut ties with big banks, has picked up momentum as the Occupy Wall Street protests have spread nationwide, channeling citizen unrest and garnering media attention. In the past month, more than 650,000 new accounts have been opened at credit unions alone with $4.5B in deposits, according to the Credit Union National Association, a trade group representing credit unions. That compares to 600,000 new accounts in all of 2010. By encouraging citizens to divert their deposits from Wall Street to community finance organizations, Move Your Money advocates hope to limit the economic clout of big banks that sparked today’s economic crisis, while empowering small business lending by institutions that did not partake in the subprime bonanza.
Chadot Federal Credit Union
7080 Donlon Way, Suite 100
(925) 828-1320
Meriwest Credit Union
4620 Tassajara Road, Suite B
(877) 637-4937
Operating Engineers Local
7300 Amador Plaza Road, Suite A
(925) 560-9660
Patelco Credit Union
7010 Amador Plaza Road
(800) 358-8228
Technology Credit Union
6601 Dublin Boulevard
(925) 828-7182
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6:02 AM on November 8th, 2011
The financial equivalent of buying locally grown…I like it…thanks Occupy Wall Street. Off the the credit unions I go and goodbye Big Banking.
7:05 AM on November 8th, 2011
The ignorance of people amazes me. Does anyone not realize why the banks did this? Democrats Chris Dodd, Barney Frank, and Dick Durbin introduced job killing legislation that will regulate how much banks can charge retailers for accepting debit cards. This will cost the big banks TONS of money in lost revenue, which is why they felt the need to charge customers. So it was not the greed of the big banks, but instead the greed of the Obama administration who caved to big retailers who threw money at them to introduce this legislation.
3:58 PM on November 8th, 2011
In response to the person who blames the Obama administration for this horrible economy – you are ignorant!
Do you not remember what we just went through with the Bush administration? He completely ignored the U.S. and focused his attention on fighting wars. That’s it. Oh and taking more vacations than any other U.S. president in history.
The banks are responsible for the mess we are in now! We are currently going through a short sale NIGHTMARE and it honestly is one of the worst experiences we’ve ever been through financially. It has come down to one person – literally ONE person – at Chase who has our fate in his grumpy, ego-driven hands. When this is all over we will immediately be transferring all of our money to a credit union! To hell with the big banks. They can use our money whenever and for whatever they want. But when we need help – they could care less.
5:56 PM on November 8th, 2011
Again with the blame game. If you are selling short its because you made a bad buying decision. Either you paid too much, lied about your income and really couldn’t afford the house…or looked at this purchase as a get rich quick scheme…flip the house and buy another McMansion…..lather….rinse…repeat.
If you truly could have afforded the house in the first place…you would just make your payments like the rest of us an quit complaining that “the man” stuck it to you!
My house was bought at 400….went to 975…like everyone’s and now is back to $500K. Big difference here….I didn’t mortgage it to 975 to cash out and go on that big vacation or buy the shiny new ski boat…
Really…if you are truly in a hardship….let the house go back to the bank and live with the 7 years of rebuilding….at least you will save the payments over the next two years.
7:20 AM on November 8th, 2011
I have joined Patelco Credit Union. So far, their customer service has been outstanding. Why did I not join sooner. They have an office over by Chipotle in Dublin and one over by WalMart in Pleasanton. They also have one in Oakland next to my work.
LOVE IT!!!
patelco.org
8:32 AM on November 8th, 2011
Been at a credit union for 20+ yrs – Patelco. Why more people aren’t banking at credit unions I don’t understand. Big banks are fee crazy!
9:00 AM on November 8th, 2011
Here’s what I want from a CU in order to make it worth my while to move to them:
1) No fees when using some other bank’s ATM– I can’t hunt all around town looking for a Patelco or Meriwest Credit Union, especially when I’m out of the area and don’t know where they are-
2) No Fees Checking-
3) Check Picture Deposit– Chase and some other banks have a cool feature where you take a picture of your check you want to deposit, and their iPhone banking app receives the deposit–
Anyone know of any CUs that have these three features
2:59 PM on November 8th, 2011
Anonymous asked “Anyone know of any CUs that have these three features?”.
I’ve been a very satisfied member of the Star One Credit Union for 33 years. According to Top 100 Credit Unions, Star One is the 10th largest credit union in the country, with assets of $5.1B. Their current interest rate on regular savings accounts is 0.80%, which is much higher than most banks or other credit unions.
As for your three criteria:
1) Members can use many thousands of surcharge-free ATMs in the U.S. They have a web app and an iPhone app that will locate free ATMs for you. I just did a search and there are 29 free ATM locations within 5 miles of Dublin’s city center. See ATM Locator.
2) I have had no-fee checking at Star One for 33 years.
3) They have a web app named ezDeposit that lets you submit a scan of a check to deposit it. It’s not an iPhone app, but I use it for all my check deposits and it works great.
The catch is that not everyone can join Star One. To be a member, you have to live, work, or attend school in Santa Clara County or be an employee of Lockheed Martin or certain other companies. For details, see Who Can Join?.
Tim Hall
Dublin, CA
9:09 AM on November 8th, 2011
Yeah, let’s go back to the days when Bush was making our economy grow by having two wars on separate continents!
6:43 PM on November 8th, 2011
Typical liberals, blaming Bush. Who was talking about Bush? We were talking about Dodd, Frank, and Durbin. Dodd/Frank are the ones who pressured the banks to give bad mortgages, and irresponsible people are the ones who bought homes they couldn’t afford. Man up to your mistakes and admit you were in over your heads. Now you blame Chase for a loan YOU agreed to.
Obama and his supporters can’t run on his record, so they have nothing else to do but blame Bush. Meanwhile it’s 3 years later, two of which he had control of both houses, and we’re worse off than before Bush left office. Bush’s highest unemployment rate was 7.3%. We’re now at 9% after 3 years of a liberal in charge.
California liberals never learn. That’s why this state is broke.
9:47 AM on November 9th, 2011
8 years of Bush coma led to this mess. 8 years of ignoring the internal problems and focusing on blasting other countries and raging war. Obama spent the last 3 years trying to clear the free-for-all mess that the country is in. Then in a few years we will go again in a Republican denial-fueled coma…no wonder the country is losing its edge as a powerhouse. Its so much easier to project a tough image than face the harsh reality.
10:45 AM on November 9th, 2011
Typical conservatives, blaming Obama. Who was talking about Obama? We were talking about Bush and those damn republicans, whose policies encouraged big banks and corporations to take on risky positions, overleveraged everything they had, and ended up getting Billions in bailout just so their CEOs can earn that extra hundred Million or two in bonuses.
Bush and his supporters can’t run on his record, so they have nothing else to do but blame Obama. Meanwhile it’s 10 years later, and we’re still trying to get ourselves out of the two unnecessary wars Bush got us into. The unemployment rate when Bush came in was 4.2% and was 7.6% when he left office. Bush had 8 years to get us into this mess. It’ll take time to get us out of it.
California conservatives never learn. That’s why this state is broke.
2:37 PM on November 9th, 2011
Anonymous 10:45 Nov 9;
Hate to correct people on the blog. But all presidents after 1990 is guilty of this economic downfall. Tinkering with the interest rate’s Greenspanism Economics created all Stock Market and housing bubble. That every president was scared to tackle. If they did their jobs, we should not be in this mess.
12:16 PM on November 10th, 2011
The big banks deserve what they are getting. Chase reneged on Washington Mutual’s guarantee of lifetime free checking. Before the new regulations kicked in, many banks increased minimum payments on credit cards and changed fixed rates to variable for long-time customers. (I just wish we had had Molly’s petition a few years ago!)
We need a strong watchdog agency. The Republicans and their contributors are doing everything they can to undermine the CFPB. Anyone who has ever filed a complaint with the OCC against one of the major banks knows what an exercise in futility that can be.
We have various excellent credit unions in the area. Several offer free checking. I believe Star One now charges a $3 monthly fee for checking accounts.
11:59 AM on November 11th, 2011
Anonymous pointed out that Star One Credit Union charges $3/month for checking accounts. While true for some accounts, note that there is no fee for checking accounts at Star One if you maintain a daily balance of at least $300 in your checking account, or $5000 in combined savings/checking, including CDs.
Tim Hall
Dublin, CA
5:02 PM on November 10th, 2011
Both Republicans and Democrats have looked the other way for far too long to put the country in the economic dump that is in now. It would be easy to point fingers at Bush and Obama (and-they-both-have-made-enough-mistakes-to-deserve-it) but this was long time in the making.
And I presume most of us commenting here are not one of the big cats immune from the effects of this downturn, so its silly to argue among ourselves when the truth is we are all getting shafted one way or the other. In fact all of us are paying for the policies drafted by the lobbyists of one special interest group or the other and passed/signed by the (my-vote-can-be-bought) politicians (and-I-wont-even-read-it-if-the-price-is-right).
Both parties are sold out to big business and the rich. Merchants’ lobbyists out bid Bank lobbyists to get debit card transaction fee changes into the Dodd/Frank Bill – booo hooo. Whether the banks hike the fees for the customers explicitly or not, they will recoup it one way or the other. And next time they will make it smooth, you will not even know you’ve been stung.
8:25 PM on November 11th, 2011
guess where Occupy Wall Street’s fundraising money is deposited – Wells Fargo!
10:32 AM on November 13th, 2011
It’s important to keep in mind that credit unions may not be charging their customers any debit-related fees, but the fees they charge retailers accepting their debit cards are now much higher (83%, to be exact) than what big banks charge. The reason is that they were exempted from the Durbin Amendment.
So we should not be losing sight of the issue that got the whole thing started – the size of the interchange fees. The way I see it, the issue is a very simple one. If a fee charged by one bank to a retailer is considered too high, it should also be considered too high if any other bank charges it to that retailer. I just can’t see it any other way and I can guarantee you that retailers see it exactly the way I do. http://blog.unibulmerchantservices.com/credit-unions-muscle-in-on-big-bank-territory