SCHINNEN, Netherlands-Stranded in the Philippines with no money and needing a way back to his base, one U.S. soldier turned to his credit union while his overseas bank turned its back.
Lavern Jones runs Andrews FCU's Schinnen branch in the Netherlands and serves more than 6,537 U.S. military personnel, Department of Defense civilians and their family members. Jones said her branch emphasizes outstanding service-exemplified by the assistance provided to the stranded serviceman.
"I get to see and experience some of the unique situations our service members find themselves in. Helping soldiers find solutions to their financial problems is one of the greatest benefits of serving on the front line of a credit union."
The stranded soldier, stationed in Schinnen, went to the Philippines with his new bride. While they were there, they were robbed. "He called another financial institution where he did his primary banking and they offered no assistance," Jones explained. "He called our branch one afternoon after we had already closed. He sounded upset and didn't know what to do. I offered to contact his first sergeant to advise him of the situation."
After validating the member's identity, Jones processed a small emergency loan for $500 and sent him a wire. He received the funds and was able to return home. "His first sergeant was so amazed at the efforts we took to assist the soldier that he became a member. Later, the soldier came into our branch with tears of gratitude thanking us for going the extra mile."
Difficulty Of Deployments
While Jones said her job is rewarding, there are special challenges to running a credit union overseas compared with a stateside branch. "First of all, it is difficult to witness deployment of service members to Iraq or Afghanistan and the impact the deployment has on remaining family members, especially the children. There are also many financial difficulties that those left behind face. For example, the remaining spouse may not have access to the checking account or may not have ever dealt with household finances. We try to assist these spouses in any way possible."
The currency exchange rate and the impact of a weak dollar also challenges members to save and the credit union to find solutions to members' financial problems. "Our service members have a very modest income. The average army specialist with one to two years of service takes home approximately $1,916 a month in gross income," shared Jones. "While they receive a housing allowance to help offset rent and a minimal food allowance, everything costs at least one-and-a-half times as much as in the states due to the currency exchange. In addition, the cost of car insurance in Europe is about double the cost of insurance in the states. Under these circumstances, it is very difficult for the service member to find money to save."
Because of the deployments and a weak dollar, AFCU often sees service members with maxed-out debt levels. "We work very hard and sometimes have to think out of the box to try and figure out how to provide relief with bill consolidation or alternative options to help lower the member's debt."
Jones said her branch faces stiff competition from both U.S financial institutions and local host-nation banks that are paying higher dividend rates. However, the fact banks here, just like in the U.S., are increasing fees keeps members in the fold, said Jones-as well as the credit union going the extra mile for servicemen. "The European financial service providers in the local area are more automated, so to speak to a live person you have to wait in line and pay about 15 cents per minute. The customer service philosophy of local banks is not up to par with the expectations of the typical American."
