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Show Mr ' Answer! Mint !- 3 - I . v On Credit Unions Many questions are asked every day of people operating credit unions, mostly by people who want to know more about them. Some- times these questions are asked by critics of credit unions, who demand straight answers. Following are some of the most frequently asked questions, with frank an- swers: Q. Can you reaily borrow money at lower rates from a ci edit union than from any other source? A. If you are a member, and if youre talking about consumer loans, the answer almost always is yes. The exceptions include bank passbook loans, some banks offering special low rates on new cars, and loans obtained from friends or relatives. If you can get an interest-fre- e loan from a friend you obviously can beat the but credit unions rate experience shows you may lose a friend. credit union Q. Sly charges higher interest rates on new car loans than I can get at my bank.' Should I use the bank? It seems like good business. A. First make sure the bank rate really is lower. If it is, your credit union will tell you so, and probably advise you to finance your new car at the bank. One of the credit unions functions is providing good advice. money-handlin- g Q. My credit union has special low rates of interit est on new cars lower are rates its claims than the local bank's. Isn't this unfair to me, a used car customer? I have to pay straight 1 percent per month. A. You have pointed out a controversial area. 1970 12, October Monday, Many credit unions feel the only fair way to operate is to charge the same interest to all members for all loans. They feel it is discriminatory to offer a better deal to a member who can afford to buy a new car than to another member who must buy used cars. This offers the best deal to the member who needs it . least, they say, at the expense of the member who needs it most. Other credit unions believe they should make it possible for members to do all their borrowing at their credit union by offering rates that make it unnecessary to go anywhere else credit. This means competing with banks and other lenders in certain areas such as new car loans, edrcational loans, etc. You can present a good case for both sides; meanwhile the argument goes on. Its significant that there is room for argument and difference of opinion in the credit union. There always is in a democratic institution. for ' Q. Credit union literature gives the impression that credit union people are all idealistic, altruistic paragons of virtue. Is this true? Dont credit unions have problems like everyone else? A. Credit unions have their share of bad actors. The movement has had its embezzlers, manipulators, poor businessmen, and incompetents. Credit unions, after all, are made up of human beings, among whom perfection has seldom been achieved. But there is evidence that the credit union idea itself attracts people who are ba-sical- ly honest and fundamentally interested in the cooperative idea of mutual help. A certain percentage of people entrusted with credit union money have violated that trust. But the movement has possibly the finest bonding program in existence, and very few people have lost money through the shenanigans of dishonest treaand surers, managers, record Our employees. compares most faborably in this respect with all other lending institutions. I have heard credit unions referred to as a bunch of amateurs." Should I entrust my finanQ. cial affairs to people who have no formal training in finance? A. Credit unions are proud to be thought of as a bunch of amateurs" because their record of serv- ice and performance has been so good. But the amateur" label is not really that accurate. It is true that a group of people can start and continue a successful credit union without any formal training, relying at first on a few fundamentals, a lot of common sense, and a willingness to be of help to each other. But good credit Continued on Page 9 Any member of the Utah Stale Retirement Sys, UTAH STAfl IMPUO'i . . . serving more than Highly trained, skilled people helping thousands of people, the democratic way, in promoting thrift and the wise use of their money. Thats the Utah State Employees Credit Union! Lowest Cost Loans are QUICK! Our Credit Committee meets every morning, Monday through Friday, long before regular business hours, to make sure that YOUR money is there for you when you need it. And every eligible loan is fully insured in case of death, at no added cost. Every dollar you invest in savings earns IN0UR15TH YEAR PROUDLY SERVING NEWS, CITY, COUNTY AND POSTAL EMPLOYEES IN DAVIS COUNTY FOR LOW-COS- T LOANS Above Average Dividends See Us' DAVIS COUNTY GOVERNMENT C 8 EMPLOYEES CREDIT UNION 745 South Main Bountiful, Utah 540 Salt Lake EAST 5TH SOUTH, SALT 521-330- 0 |