Credit Union and Cooperative Patronage Refunds - Filene ...

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The ABA is eager to gripe about the credit unions’ tax exemption, but nowhere on its website does the ABA wrestle with these ethical charter conversion issues or the laudatory social and economic benefits that accrue to members of credit unions over IOF banks. The ABA either does not see or ignores the fact that credit unions are more sustainable than IOFs, that credit unions do not hoard capital for their own use, and that credit unions return unneeded capital to members. 59
Appendix Exhibit A: 2007 Newsletter Article Announcing the Patronage Dividend at CoVantage Credit Union ($861M, Antigo, Wisconsin) $1.4 Million Rebated to Members Over 14,000 CoVantage members will “step into cash” when their loan interest rebate checks arrive in next week’s mail. This year’s 5% rebate will provide the largest payback ever, and will put a record $1.4 million back into the hands of credit union member-owners. If you’re new to CoVantage, getting a rebate from the place you have your loan may be unheard of. But, members with a history of borrowing here see it as a valued reward for their patronage. And, this year’s rebate marks the 26th year that directors have determined there is sufficient net income to provide this benefit. Here’s how the rebate works. If you had a loan with CoVantage during 2007, and all of your payments are current, you’ll automatically receive a check returning 5% of the interest you’ve paid. No application required! So, if you paid $5,000 in interest on your CoVantage home loan during 2007, you’ll receive a rebate for $250! This year we have enhanced our program to combine the interest paid on all loans under one account number. Because we send checks only when the rebate totals at least $5.00, this improvement will allow even more members to get their rebate. (Student loans are not eligible for the rebate.) The loan interest rebate is just one way members receive exceptional value from their credit union. Throughout the year we work to keep loan rates low, charge fewer fees than others, and pay market- leading rates on deposits. To ensure our rates and fees are competitive, we monitor what others are offering. And while some may have special rates and gimmicks, we are confident that CoVantage is one of the best when it comes to overall member value. To give you an outsider’s viewpoint, we would like to share that out of [thousands of U.S. credit unions] we were ranked in the top 1% for “Return to Savers.” This ranking was provided by an independent consulting group, and is a measure of the deposit services a credit union provides. As a member- owner of CoVantage Credit Union, you deserve the best from your credit union. Staff, management, and directors are committed to ensure that each and every member receives outstanding value. 60
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Credit Union and Cooperative Patron
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Copyright © 2011 by Filene Researc
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Acknowledgments We appreciate and a
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List of Figures 1. Average of 27 Cr
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What Are the Credit Union Implicati
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Introduction There are many ways in
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to us is a philosophical gulf betwe
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CHAPTER 1 Patronage Refunds Are Mor
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Page 25 and 26: principles. When we discuss other c
Page 27 and 28: A recent post to the Filene Researc
Page 29 and 30: Our response to the blog post quest
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Page 35 and 36: Figure 2: Contrast Statutes Governi
Page 37 and 38: Patronage earnings that are allocat
Page 39 and 40: When rural electric cooperatives ar
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Page 45 and 46: y row 9). All in all, this is a ver
Page 47 and 48: Badgerland, all of this association
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Page 59 and 60: Patronage Refunds: A Differentiator
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Page 73 and 74: Think of how much more you, and oth
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