News

Another Customer Survey Ranks CUs above Banks

ANDOVER, Mass. (4/14/10)--Members/customers at credit unions and community banks continue to show much more satisfaction and better advocacy rates than customers of larger regional or national banks, according to a recent study.

Ath Power Consulting's Banking Study 2010 indicates that 50% of credit union members surveyed are highly satisfied with their financial institution, compared to 31% at large regional or national banks and 46% at small local or regional banks.

About 61% said they were likely to recommend credit unions, compared with 51% who were likely would recommend small local or regional banks and 36% who were likely to recommend large regional or national banks.

"The largest financial institutions are trying to replicate the positive experience most customers enjoy in smaller institutions," said Frank Aloi, president of the Andover, Mass.-based banking market research firm. "Customers are most interested in strong service, personal relationships and personal advice. This is where the smaller institutions have an edge."

Consumers surveyed by Ath said the most important thing they want in a banking relationship is customer service, followed by convenience, rates and fees, and trust and respect.

The survey also found that problem resolution is not being adequately addressed by most financial institutions. Only 25% of customers who experienced a problem felt it was resolved to their satisfaction. Customers whose problems were resolved satisfactorily were likely to remain satisfied with their banking relationship. More than half said those who did not receive an adequate resolution to their problems were likely to change banks.

"When customer service expectations are met or exceeded, the outcome is a substantial increase in advocacy/referrals, additional product sales and long-term loyalty," Aloi said. "This study shows that banks need to do a better job of meeting and exceeding customer expectations."

Health Care Law Confusion Spawns 'Perfect Storm' for Crooks

WASHINGTON (4/14/10)--Industry professionals fear that confusion over the recent health care legislation is a key ingredient in a recipe for disaster. Add in the rising cost of health insurance premiums, millions of uninsured Americans, and high unemployment, and crooks are salivating at what's being called a "perfect storm of vulnerabilities" (npr.org April 1).

The new law commits funds for beefing up anti-fraud enforcement and oversight, but that's not going to stop con artists from taking advantage of a confused public. Scams started popping up within days after President Barack Obama signed the law. One cable TV ad urged viewers to call a toll-free number to avoid missing out on a "limited enrollment" period to obtain coverage. Some crooks already are going door-to-door selling so-called "Obamacare" insurance policies.

The Coalition Against Insurance Fraud, Washington, D.C., warns that the best defense is to educate yourself. Don't allow anyone to rush you into making decisions about any kind of insurance. Take these precautions:

• Beware invasive sales pitches. Crooks are using the phone, fax machine, and e-mail messages to promise you good insurance deals. Don't bite.
• Steer clear of slick, evasive websites. Bogus plans are popping up online that are high on hype but slight on details. If you're asked for a credit card number without seeing the policy first, walk away.
• Tell pushy sales reps to back off. If anyone tries to get you to act fast and give up your credit card or financial account numbers, that's a sure sign the deal is no good.
• Be suspicious of enticing offers. If the sign-up process seems too easy, or the premiums seem unreasonably low, or the medical questionnaire isn't very detailed, that's a red flag.
• Watch for language about "federal oversight." If the salesperson tells you the plan doesn't require state licenses because it's regulated by ERISA or some other federal law, run--don't walk--to the nearest exit.

If you think you've been swindled, contact your state insurance department immediately. Visit naic.org/state_web_map.htm for the office nearest you.

Your Money is SAFE at Magnolia Federal Credit Union

NCUA to insure accounts up to at least $250,000 through 2013

Credit unions remain a safe harbor for your savings and other accounts. Thanks to federal insurance, members' shares are backed by the full faith and credit of the U.S. Treasury.

All Mississippi credit unions, including MagFedCU, are insured by the National Credit Union Share Insurance Fund (NCUSIF), which insures savings to at least $250,000 (through 2013) per account. Certain retirement accounts such as IRAs and Keoghs benefit from additional coverage. In the history of the NCUSIF, not one penny of insured savings has ever been lost by a member of a federally insured credit union.

In fact, in today's tough economic environment, there is no better time to be a credit union member!

One of the biggest differences in credit unions versus other financial institutions is that credit unions are not-for-profit financial cooperatives. They are local and owned by their member-owners. That means credit unions value people over profit.

The Credit Union National Association estimates credit union members in Mississippi received over $76 million in direct financial benefits in 2007--equivalent to $126 per member -- through lower loan rates, higher saving rates, and fewer fees than other financial institutions.

To learn more about credit unions, visit www.creditunion.coop.

To determine how much of your savings at your credit union is covered by federal insurance, use the NCUA Share Insurance Estimator.