Rising Membership Fueled by Backlash Against Increased Bank Fees
MALRBOROUGH, Mass., Nov. 9, 2011 /PRNewswire/ -- Fed up with increasing fees imposed by banks, Massachusettsconsumers are moving their deposits from banks to local credit unions by the tens of thousands in search of more consumer-friendly pricing and better customer service.
The Massachusetts League estimates that between September 29th and October 29th, 2011, at least 19,700 consumers across the state joined a credit union, adding $136 million in new credit union deposits. September 29th marked the day that Bank of America (BofA) announced its $5 monthly debit card fee, which was later rescinded after consumer uproar.
Statewide estimates are still being gathered for the impact of "Bank Transfer Day," a grassroots-led initiative urging consumers to transfer their accounts from banks to credit unions by Saturday, November 5th. But, preliminary numbers suggest continued momentum. Digital Federal Credit Union, the largest credit union in New England with 330,000 total members, reported that it signed on 133 new members on Saturday, a 56% increase from the 85 account openings it averages on a Saturday.
"Bank Transfer Day was a success because it prompted consumers to rediscover, or even learn for the first time, about the credit union," said Dan Egan, CEO/President of the Massachusetts Credit Union League.
In addition, the Credit Union National Association (CUNA) reported 40,000 consumers joined a credit union on Bank Transfer Day. Since BofA announced its fee hike, 20,000 people a day on average have joined nationwide.
"We expect this interest to continue as consumers spread the word about the benefits of joining a financial institution whose mission is to serve its members, not its shareholders," added Mr. Egan. "There are over 200 credit unions throughout our state where consumers can walk in, and feel in control of their wallet again. People can say no to the big banks and big fees. Bank Transfer Day is only the beginning."
Consumers can find their local credit union at aSmarterChoice.org.
