Unity Catholic Federal Credit Union, Parma, Ohio, on Monday said it has saved 247 of its members an average of $4,000 this year by refinancing automotive and personal loans and credit card debt – a total of $1,087,646 in savings.
Brian McCue, president and CEO of Unity Catholic FCU, emphasized the philosophical differences between not-for-profit credit unions and for-profit financial institutions, both brick-and-mortar banks and online lenders.
"We are not here to answer to shareholders and drive people deeper into debt," McCue said in a statement. "We are here to provide affordable financial services so our members can achieve financial security."
Unity Catholic FCU noted the level of confidence in banks remains low and is unchanged since 2013, citing a Gallup Poll released in early June that found only 27% of adults have confidence in their banks. That confidence level is down significantly from pre-financial crisis numbers, including 53% reported in 2004. The record high was 60% in 1979.
The credit union said it saw an opportunity to distance itself from for-profit FIs by offering members better terms and rates on balances due. It said it is on pace to finish 2016 with $1.2 million in savings to its members.
Despite the overwhelming number of direct mail offers consumers receive to refinance loans, studies have shown few respond to the hard hustle. What was the difference with Unity Catholic?
"Quite often people think it is too good to be true, but when you look at the lifetime of the loan, the savings can be quite significant," McCue said. "When you are being personable – have that one-on-one relationship with your members – you can really show them the best ways to save."
For 2017, the credit union has upped its goal to $1.5 million in member savings.
Unity Catholic Federal Credit Union serves all parishioners, students, employees and corporate entities of the Catholic Diocese of Cleveland and Eparchy of Parma.
