News

This Credit Union is federally insured by the National Credit Union Administration.

January 2009 issuefor WCCU Members NewsCommunity Community

Short on cash? Think twice before you take out a payday loan (AKA- cash advance loan, postdated check loan, or delayed deposit

check loan). This line of credit will provide you the money you need to get by until your next paycheck, but at what price?

Payday Loans:

The Hard Truth About “Easy” Money

Notice of Nominating Committee Meeting

In Accordance with the Westerly Commu-nity Credit Union bylaws, the Nominating Committee Meeting will be held on Monday, February 9, 2009. This meeting will be held in the boardroom of the Westerly Communi-ty Credit Union at 122 Granite St., Westerly RI from 6:30 pm to 7:00 pm. A copy of the Article XI Nominating Committee bylaws is shown. The 61st Annual Meeting will be held on Monday, March 30, 2009. If you have any questions, please call the Westerly Com-munity Credit Union at (401) 596-7000.

Steven W. Scales, Secretary

Here’s how it typically works: you write a postdated personal check for the amount needed plus the fee. The check casher holds the check until your next payday at which time you can pay the loan back or renew/roll-over by paying an additional fee.

Stated as an Annual Percentage Rate (APR), the fees are shocking. According to a Consumer Federation of America (CFA) and Public Interest Research Group (PIRG) report on the payday loan industry, the APR on $100 borrowed for 14 days ranged from 182% to 970%. The fees climbed even higher if you roll over the payday

loan. Before long the escalating charges dwarf the original balance.

Your first stop for loans should always be WCCU. Say you pay $120 to borrow $100 for one month from a payday loan company. If you were to instead take out a WCCU Personal Line of Credit for the same $100 at 6.00% APR*, you would pay only $.50 in interest when paid back at the end of the month- a savings of $19.50!

“You’d end of paying almost 40 times more for the payday loan than a Credit Union loan,” says Mike Lynch, VP of Lending at WCCU. “That’s before you take into account any other fees you might be charged.”

The Credit Union’s Personal Line of Credit loan offers no minimum loan amount. It is available for whatever your needs might be- buy gas, pay a bill, cover yourself for the ‘just in case’ situations etc.

There are better solutions than payday loans. For more info about the WCCU Personal Lines of Credit or fixed rate Personal Loans, con-tact us at 401-596-7000 or visit our website at www.westerlyccu.com.*Annual Percentage Rate (APY) as of Dec. 16, 2008 and subject to change. Rate shown is for A+ credit score. The APR is variable based on the Prime Rate as published in the Wall Street Journal five days prior to the end of the month. APR will never be more than 18% or less than 6% for the remaining life of the loan after the initial fixed period. No minimum loan amount. Maximum loan is determined at open-ing based on credit score but not to exceed $25,000. Other restrictions may apply.

Nominating Committee Meeting Bylaw- Article XINomination of candidates for election as members of the Board of Direc-tors and Supervisory Committee shall be made at the nomination meeting held at least 45 days prior to the annual meeting.The Chairperson of the Board of Directors shall appoint a nomination committee of at least three members who shall prepare a slate of candidates to fill vacancies occurring on the Board of Directors and the Supervisory Committee. No member shall be eligible for election unless nominated by the nominating committee, or by a nomination petition that is signed by a minimum of 25 qualified voting members, and presented at the nomination meeting. The secretary shall notify in writing all members eligible to vote at least 75 days prior to the an-nual meeting that nominations for vacancies may also be made by petition that is signed by a minimum of 25 qualified voting members and presented at the nomination meeting. All nominees shall be qualified members and shall be required to have three years consecutive membership in the Credit Union, which must be continuous up to the date of the member’s election, in order to be eligible for nomination and election as a member of the Board of Directors or Supervisory Committee. A “qualified voting member” is defined as a person who attained the age of eighteen (18) years and has been a member of the Credit Union for more than three (3) months and is not in default of any loan or obligation to the Credit Union.

Westerly~Wyoming~South Kingstown401-596-7000

www.westerlyccu.com

Seating is limited, please RSVP to Nancy Martin, WCCU Community Education Specialist, at 401-596-7000 x2142 or sign up online at

www.westerlyccu.com under ‘Educate Yourself’

Check out our free Seminars!!

All Seminars are FREE!6:00 pm- 7:30 pm ~ at WCCU, 122 Granite St, Westerly

Save for retirement in 3 easy

steps:

*Annual Percentage Yield (APY) effective Dec 9, 2008 and subject to change without notice. Minimum balance to open $25.00. Balances of $10,000 or more will earn 2.50% APY, balances of $5000-$9999.99 will earn 1.75% APY, balances of $25-$4999.99 will earn 1.00% APY. Consult your tax advisor to make sure you qualify for tax deductibility of IRA contributions.

Open a new IRA Savings Account with as little as $25.Make deposits whenever you want, in any amount.Pat yourself on the back. You’re on the road to a more comfort-able retirement.

1

2

3

Open an IRA Savings Account

Earn up to

50%APY*

on balances of $10,000 or more

Tax-deductible contributionsNo monthly or annual fees

No minimum balance requirement

Reverse Mortgages

Cash to cover expenses. Funds to achieve dreams.

Is a Reverse Mortgage right for you? For more information and a free consultation, contact us today at 596-7000.

* Consult a tax advisor regarding deductibility. **Reverse Mortgage borrowers are required to obtain an eligibility certificate by receiving free counseling sessions with a HUD-approved agency. Family members are strongly encouraged to participate in these informative sessions.

2.

What is a Reverse Mortgage?n It is a special type of loan that enables indi-viduals aged 62 or older to convert some of their home’s equity into tax-free* cash.n Unlike traditional equity loans, no repayment is required until the home is no longer the principal residence.

Who is eligible for a Reverse Mortgage?n Homeowner (s) who are at least 62 years of age and occupy the property as their primary residence.n Eligible properties include single-family homes, condominiums and townhomes, or a 2-4 unit dwelling.n The home must be owned free and clear or have a small remaining balance that can be paid off with the Reverse Mortgage.n No income, employment or credit requirements are required**

What are some of the benefits of a Reverse Mortgage?n The Reverse Mortgage customer always retains ownership and lives in their home.n Cash advances can be used for any purposen Loan proceeds are not considered income and will not affect Social Security or Medicare benefits. However, your monthly Reverse Mortgage advances may affect your eligibility for some other programs-discuss with a Reverse Mortgage Repre-sentative about your specific situation.n The heirs can keep the home once the Reverse Mortgage is repaid.

How is the Reverse Mortgage loan repaid?n A Reverse Mortgage is due and payable when the property is no longer consid-ered the customer’s principal residence.n The loan must be repaid in one payment-either from the sale of the home or through other resources.

Jan 13th- Tapping Into Your Home’s EquityPresented by Penny Crandall, WCCU AVP/Lending Officer

WCCU’s 61st Annual Meeting When: Monday, March 30, 2009

Where: The Chester House in WesterlyItalian Buffet Dinner- 6:00 and Meeting- 7:30

Tickets will go on sale the end of January.

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