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Release: Putting the Credit
Union Difference to Work
For Immediate
Release
Contact: Patrick Harris
Director of Media Relations
Ohio Credit Union League
pharris@ohiocul.org
800-486-2917
People vs. Profit: Central Ohio Credit Unions Put
the Credit Union Difference to Work for Their Members
Here the members tell their stories
about how
credit unions helped them improve their lives.
Columbus, Ohio (October 26, 2011) Like many Ohioans,
Cherita Peeks struggled with her finances. Not long ago, the
single, working mother of two was unable to obtain a traditional
checking account as a result of some previous unintended
overdrafts. Peeks’ only option was to cash her paychecks at
check cashing outlets, paying fees that took a bite out of her
income. Then she happened upon a Central Ohio credit union.
“I was going to different corner stores, cashing my checks,
getting charged fees that were unnecessary,” said Peeks. “I just
so happened to drive past BMI [Federal Credit Union] one day,
stopped, and asked them what I needed to do to join.”
Because her
employer was one of the more than 300 business partners that
benefit from Dublin-based BMI Federal Credit Union, Peeks joined
and was introduced to the credit union’s 2nd Chance
Checking product. 2nd Chance Checking was developed
for members like Peeks, who need help re-establishing their
checking account history. The product provides members with
direct deposit and an ATM Card. After 12 months, members in good
standing receive financial education and can then apply to take
part in free checking at the credit union.
“Everyone
deserves a second chance,” said Christy Paugh, an Assistant
Manager with BMI. “More of our members are living paycheck to
paycheck, which is why credit unions are essential to the
community. If we have a member that comes to us with a problem,
I don’t want to offer a short-term solution, I want something
that is going to continue to help them.”
Credit unions are not-for-profit, democratically-controlled
cooperative financial institutions that follow a simple, but
important, philosophy of “People Helping People.” The
not-for-profit structure and service-oriented philosophy allow
credit unions to offer affordable products and services designed
to provide real solutions to the financial stressors plaguing
Ohioans.
“As
member-owned cooperatives, credit unions’ sole purpose is to
help members get ahead,” said Paul Mercer, President of the Ohio
Credit Union League. “Ohio families are facing tough
circumstances, living paycheck to paycheck and are unable to
save. Ohio credit unions are addressing the problem by creating
affordable products and services that help build a strong
financial foundation.”
Ben and
Jeanette Karns, KEMBA Financial Credit Union members, understand
the financial pressures that working Ohioans face. The family of
four was struggling to save money before competing in the
Gahanna-based credit union’s Biggest Saver competition. The
eight month challenge pitted member families against each other
with the goal of improving their individual financial situations
by increasing savings and reducing debt. The Karns won the
challenge after increasing their savings by $6,500 and reducing
their debt by nearly $13,000. Their-first place prize netted
them $10,000, a portion of which was donated to their church and
to minor household renovations, while the rest was deposited
into their “emergency fund.”
“Our credit
score has improved, we are saving a lot more, we are better
prepared for those emergency needs for our house and our car,
and for our financial future,” said Jeanette Karns.
Laura Ille,
Project Manager at KEMBA Financial Credit Union, knows the Karns
are not alone. The six families who competed saved a total of
$42,000 and reduced their overall debt by $53,000. But there is
more work to be done. “Our end goal is not to make money for
stockholders, our goal is to enrich the financial lives of all
of the members of our organization,” said Ille. “What was great
about KEMBA’s Biggest Saver was that the contest was visible to
all of our members, so it showcased how they were making changes
in their financial life.”
As for Peeks,
her experience at BMI encouraged her to instill the lessons she
learned into her children’s financial habits. “I’ve also opened
up accounts for my children, so I’ve started them off young.
It’s been great being a member, and I will continue to be a
member for the rest of my life.”
The Ohio Credit Union League, with offices in Columbus, is a
state trade association representing 382 credit unions. Credit
unions are not-for-profit financial institutions owned and
democratically-controlled by their members. Ohio credit unions
provide savings, loans, and other consumer financial services to
their 2.68 million members. To learn more, visit
www.ASmarterChoice.org.
