Loyalty Program BoostsLending

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CRANBERRY TOWNSHIP, Pa. - (01/19/06) -- USX FCU has breathed life into ananemic loan-to-share ratio using a loyalty reward program forborrowers that this year is paying 21 cents on every dollar ofinterest earned or paid during 2005. A credit union spokespersontold The Credit Union Journal that the credit union has boosted itsloan-to-share ratio to 55% from 40% in the four years the programhas been in place. "People have started calling now and asking whatthe reward will be," the spokesperson said. The credit union sendsa letter to all members across the bottom of which is arepresentation of a check (it's non-negotiable) to show them howmuch has been earned. The credit union rebated as much as $3,500 toone mortgage borrower and $1,800 to one CD holder. The $120-millionUSX FCU is well-capitalized and is rebating to members nearly all$1 million in earnings from 2005.

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