Wednesday, August 05, 2009

Hey VanCity!


Double Secret Probation Update, Aug 11/09:
Vancity backs down.....


Just in case you've forgotten, I joined your credit union twenty years ago because I did NOT want to be screwed by a financial institution with the mentality of a big bank:

...Vancity has sent letters to 18,000 of its members, urging them to sign amendments to their credit line agreements. The new paperwork would allow the credit union to hike their rates unilaterally, which is not legally allowed under most of its existing contracts.....

{snippety doodle dandy}

.....The credit union wants the right to raise rates by one percentage point now, plus make future adjustments without having to ask for customers' consent. The letters tell members the "rapidly dropping prime rate," currently at 2.25 per cent, makes Vancity's existing fees — set as low as prime plus zero — "unsustainable."

"We found that the pricing of our lines of credit is no longer competitive with the market," said Vancity CEO Tamara Vrooman. "This particular product line is not profitable for us — so we feel it is reasonable given what else is happening in the market to go to our members [with the requested amendment].".....

Sure thing Ms. Vrooman.

And my mortgage is most definitely not profitable for me and mine.

So, when it comes due in a couple of months*, perhaps I'll take my (non-big banking) business to another credit union.

*And isn't it funny how those rates have risen also in the last couple of months despite a Fed rate that is still historically low.....

Monday Aug 10/09....This Post Has Been Updated Here.