650,000 new members ahead of Bank Transfer Day

[The Green Barbarian]

But, but, where do you keep your 'spare' cash... like maybe savings you have? Mattresses are notoriously a bad idea, and if you keep your money in a savings account, even in an CU, they still lend out $8 for every $1 you have in your account...soooo?

soooooo what? That's called "banking" - it's based on the principle that the financial institute, for every deadbeat that it lends money to, will have 90% of their other loans still be good. And it works, because usually people pay back their loans, and the financial institutions have some sort of collateral to collect on if they don't. Also - credit unions in BC are backed by the provinicial government, so they can't fail, unless the provincial government fails, and at that point, we're going to have much bigger problems than you losing your $12 in your Plan 24 account.

[flamingfingers]

But, but, where do you keep your 'spare' cash... like maybe savings you have? Mattresses are notoriously a bad idea, and if you keep your money in a savings account, even in an CU, they still lend out $8 for every $1 you have in your account...soooo?

soooooo what? That's called "banking" - it's based on the principle that the financial institute, for every deadbeat that it lends money to, will have 90% of their other loans still be good. And it works, because usually people pay back their loans, and the financial institutions have some sort of collateral to collect on if they don't. Also - credit unions in BC are backed by the provinicial government, so they can't fail, unless the provincial government fails, and at that point, we're going to have much bigger problems than you losing your $12 in your Plan 24 account.

You really did not attempt to see the point I was making...

[The Green Barbarian]

Credit unions are often non-profit organizations, not listed on stock exchanges and therefore don't have revenue goals and merely provide financial services at cost.

It's a sorta socialist idea.

except credit unions actually work and serve a purpose, so they can't be socialist.

[The Green Barbarian]

You guys are kind of missing the point here. The truth is, the banks make it so fee intensive to have accounts with them because they really don't want your money. The credit unions don't really want it now either. I have a friend who manages a CU in a small town in BC and he says they are sitting on over $30 million in cash they can't lend out, because no one wants it. Thanks to this thing called "demographics", we currently have a large percentage of our population that has paid off their mortgages, but are still working, and are now banking all of their excess cash. There are more people paying in to banks with their cash, then are drawing off cash in loans and mortgages. In the 1980's, the baby boomers were all borrowing money to pay for their houses, so given demand for money was so high, interest rates were high. Now that demand is slacking off, interest rates are low, and probably will be low for the next 25 years, until the next demographic wave takes over, and more people are again drawing cash than saving it. Until that happens, the banks are going to be more and more unfriendly to Joe Consumer. Is this a stupid policy? Yup. But no one ever said banks were smart, or far-sighted.

So - move your money over to a Credit Union to "teach the big banks a lesson" - but they honestly don't care. And the Credit Unions, because they are nice people, will take it, but probably don't care either.

[NAB]

But, but, where do you keep your 'spare' cash... like maybe savings you have? Mattresses are notoriously a bad idea, and if you keep your money in a savings account, even in an CU, they still lend out $8 for every $1 you have in your account...soooo?

Also - credit unions in BC are backed by the provinicial government, so they can't fail, unless the provincial government fails,

I don't think I knew that. In what way are they backed by the provincial government?

Nab

[The Green Barbarian]

But, but, where do you keep your 'spare' cash... like maybe savings you have? Mattresses are notoriously a bad idea, and if you keep your money in a savings account, even in an CU, they still lend out $8 for every $1 you have in your account...soooo?

Also - credit unions in BC are backed by the provinicial government, so they can't fail, unless the provincial government fails,

I don't think I knew that. In what way are they backed by the provincial government?

Nab

This probably got lost in all of the "We hate Campbell and the Liebrals" hype of the past three years...

http://rosslandtelegraph.com/node/1122

Campbell Government Backs Unlimited Deposit Insurance for BC’s Credit Unions

by Rossland Telegraph on 27 Oct 2008

One of the few good news stories to come out of recent global economic turmoil has been the revelation that Canada’s banking system is about the most stable and best-regulated in the world.

While Iceland’s banking system freezes solid and the US desperately tries to bail out its drowning financial institutions, in Canada’s banking sector it’s business as usual. With the goal of further strengthening our banking system, Premier Gordon Campbell announced last Wednesday, as part of his ten point plan to help BC’s economy, that deposits in BC’s Credit Unions, including Rossland’s branch of the Nelson & District Credit Union, will now have unlimited guarantees.

The Credit Union Deposit Insurance Corporation of British Columbia (CUDIC), a provincial corporation administered by the Financial Institutions Commission (an agency of the B.C. government) will provide this deposit insurance.

This move brings British Columbia into line with provinces such as Alberta, Saskatchewan, Manitoba, New Brunswick and Prince Edward Island.

For more information, check out the Financial Institutions Commission website at http://www.fic.gov.bc.ca/responsibiliti ... mation.htm.

[NAB]

This probably got lost in all of the "We hate Campbell and the Liebrals" hype of the past three years...

http://rosslandtelegraph.com/node/1122

Campbell Government Backs Unlimited Deposit Insurance for BC’s Credit Unions

by Rossland Telegraph on 27 Oct 2008

One of the few good news stories to come out of recent global economic turmoil has been the revelation that Canada’s banking system is about the most stable and best-regulated in the world.

While Iceland’s banking system freezes solid and the US desperately tries to bail out its drowning financial institutions, in Canada’s banking sector it’s business as usual. With the goal of further strengthening our banking system, Premier Gordon Campbell announced last Wednesday, as part of his ten point plan to help BC’s economy, that deposits in BC’s Credit Unions, including Rossland’s branch of the Nelson & District Credit Union, will now have unlimited guarantees.

The Credit Union Deposit Insurance Corporation of British Columbia (CUDIC), a provincial corporation administered by the Financial Institutions Commission (an agency of the B.C. government) will provide this deposit insurance.

This move brings British Columbia into line with provinces such as Alberta, Saskatchewan, Manitoba, New Brunswick and Prince Edward Island.

For more information, check out the Financial Institutions Commission website at http://www.fic.gov.bc.ca/responsibiliti ... mation.htm.

Ahhh yes, the deposit insurance subsidiary of FICOM, similar to the federal CDIC related to banks and other financial institutions. I remember when the CU deposits insured moved up to $100,000.00 to match the CDIC coverage, then based on the creation of FICOM they took an extra step to "unlimited" for qualified deposits, which was a great thing as prior to that one had to be very cautious about spreading their deposits around so as not to accumulate an excessive amount in any one CU. Made life a lot easier for those who had more than a hundred grand in qualifying deposits.

Still, and perhaps erroneously, I thought it was structured similar to CDIC, in that the insurance division draws its funds via premiums from its member institutions, and presumably invests them in some way to maintain adequate funds to cover any failures on an unlimited basis. I didn't get the idea at the time though that the government was in any way on the hook, although I did have a sense at the time that , via FICOM, they could access that fund if they wished, much the way they can access ICBC or BC Hydro revenues, or even the Carbon Tax revenues for that matter. I guess I will have to weed through the legislation to determine the exact structure, where the (hopefully) accumulating money comes from, ...and where it goes while it is not needed. Hopefully it's not another of those deferred costs accounting maneuvers that have become so famous lately. Worth a look see anyway. Thanks for the reminder.

Nab

[Bagotricks]

Banks hooking Canadians on credit, Gail Vaz-Oxlade says

http://www.cbc.ca/news/business/story/2 ... -debt.html

"You remember when we went through the last credit crunch? Credit card companies were reducing people's credit limits.What that does is that it pushes up your credit utilization. That drops your credit score. What that does is give the credit card company justification for raising your interest rate.

What I want people to do as part of this whole push that I have right now is I want people to send a letter to their member of Parliament. I want them to take the credit score off the table as the credit adjudication tool of choice. The other problem we have with the credit score is that it's gained a huge foothold in the U.S., and it's trending the same way here in Canada, and it's dangerous. For example, I now have people writing to me saying that they have employers who want to check their credit scores before they hire them. What the hell is that about? In the U.S., you can't get health insurance if your credit score is crappy. What is that about?

I've seen a 21-year-old man, making $24,000 a year, with a credit card from a Canadian bank that gave him a $15,000 limit. They could never imagine that he could pay that back if he used it. Their argument is that he shouldn't use it."

[Captain Awesome]

I've seen a 21-year-old man, making $24,000 a year, with a credit card from a Canadian bank that gave him a $15,000 limit. They could never imagine that he could pay that back if he used it. Their argument is that he shouldn't use it."

Have you ever went to school in the last 10 years? The very first day you go to school, fresh out of high school, you see tents set up by your friendly neighborhood bank (after paying huge sponsorship to student association) giving out credit card applications. Yes, underemployed, young teenagers, with no life experience make great applicants for credit cards.

That's when I got my first Visa card (hello, RBC).

For example, I now have people writing to me saying that they have employers who want to check their credit scores before they hire them. What the hell is that about?

If you are broke/have crappy credit score you can't be bonded. Or you can't work with money. Or you can't be in a position to handle company's accounts (controller, high-level accountant, etc.)

[Bagotricks]

If you are broke/have crappy credit score you can't be bonded. Or you can't work with money. Or you can't be in a position to handle company's accounts (controller, high-level accountant, etc.)

Usually they ask you if you are bond-able if that is what they are looking for, they don't hit you up for a credit report and backdoor it.

I know a certain technology company that runs credit checks on their lowest level employees (which do not require bond), and as the article states, people are denied medical insurance now based on their credit scores as well - whats next?

[Captain Awesome]

I know a certain technology company that runs credit checks on their lowest level employees (which do not require bond), and as the article states, people are denied medical insurance now based on their credit scores as well - whats next?

I know a company that asks their perspective employees to provide their household budget.

[Bagotricks]

I know a certain technology company that runs credit checks on their lowest level employees (which do not require bond), and as the article states, people are denied medical insurance now based on their credit scores as well - whats next?

I know a company that asks their perspective employees to provide their household budget.

Lowball time when it comes to discuss "compensation"? Brutal. "We only hire the economically desperate - its good for our bottom line".

Who would subject themselves to that line of questioning? Talk about inappropriate.

[Captain Awesome]

Lowball time when it comes to discuss "compensation"?

Actually, they want to make sure they can pay somebody enough - no point of hiring somebody who will be desperate for money and will quit as soon as another opportunity arises that pays couple bucks more. Also, people who actually have a household budget seem to be more disciplined and more mature.

[Bagotricks]

Lowball time when it comes to discuss "compensation"?

Actually, they want to make sure they can pay somebody enough - no point of hiring somebody who will be desperate for money and will quit as soon as another opportunity arises that pays couple bucks more. Also, people who actually have a household budget seem to be more disciplined and more mature.

Again, it is 100% appropriate. The applicant who is applying for the job has a rough idea of what level compensation is going to be paid out - people don't apply at McDonalds looking for $25/hour plus a company car. A employees needs are their own business - and so is their household budget. People *looking* for work *need* money - obviously. This is just a way to see how "desperate" they are. People who have alot, expect alot. You line of reasoning could also be reversed - people who don't "need" the job are more likely to quit when the going gets tough...but when someone is desperate they will take a little more crap and wont *bleep* when you take away xyz.

I think 100% of people showing up to a job interview that *have been asked* to bring a household budget will show up with one - whether they actually have one or not. I hardly would call that a tool to gauge someones discipline and maturity.

A employer can ask whatever they want at a job interview, besides sexual orientation and race questions - but the types of question they ask reflect the company they are. You are interviewing them as much as they are interviewing you. I have walked away from jobs based on the line of questioning they ask. "Are you willing to work and not be paid".

[Captain Awesome]

You line of reasoning could also be reversed ...

Just to clarify, that's not my line of reasoning, I'm just saying what I know about this particular, highly successful company hiring practices.