CUs in CA turn IOUs into Members

by Ron Daly

 

We're all aware of the big-time budget problems that are plaguing The Golden State. A cash-strapped California is having to offer IOUs to citizens and businesses that earned a tax refund. This system has been used before in 1992 when the coffers were empty, and will offer IOUs that mature in October of this year.

But not everyone likes IOUs. I refer specifically to the larger banks - your Bank of Americas, your Wells Fargos - who are refusing (at least as of this writing) to accept IOUs issued by California. Isn't that something? The banks that asked for billions in bailout money and came back for more aren't honoring IOUs. Huh. 

Well, as usual, where the big banks fail, CUs succeed. 

California CUs are ready, willing and able to accept IOUs from the state. [Read in the CU Journal]

From the article: 

"More than two dozen credit unions, including SchoolsFirst FCU, The Golden 1 CU, Travis CU, Yolo FCU, San Francisco FCU, Community First CU, Provident CY, SRI FCU, Kaiperm Diablo FCU, Contra Costa FCU and Chabot FCU, have announced they will accept the IOUs, some them indefinitely."

What a great opportunity. As Golden One CU President/CEO Terry Halleck said in this article:

"However, I believe it would be great for credit unions if the banks did not accept the Registered Warrants because that service shortfall and strategic misstep should then cause many bank customers to rethink their banking relationship," Halleck said.

A willingness to be there when the big banks aren't - the CU difference strikes again. 

How are you showcasing the difference your CU can make? Were you able to do what a bank was unable to do recently? Tell us about it. 

Comments

[Jonathan]

To be fair, Wells Fargo asked not to take the bailout money, but was strong-armed into taking it anyway. Everything else, though... right on!