IOWA CITY, Iowa – The University of Iowa Community CU announced this morning it is the latest victim of market economics, forcing it to close its branches on the University’s campus and the University of Iowa Hospitals and Clinics as the credit union declined to participate in competitive bidding for renewal of the five-year leases.
The University-chartered credit union is among a growing number of credit unions affected by the termination by corporate sponsors of preferential leases as companies and other institutions seek to raise revenues.
The $1.4 billion credit union said it will continue to offer students the Iowa One ATM/university identification card but it will no longer be authorized to accept the University's U-Bill tuition payments.
The credit union, which is building a new headquarters and branch facility in nearby North Liberty, said its other nine branches will remain open after closure of the University sites but it opted out of the competitive bidding process because the new contractual guidelines established by the University “simply did not make financial sense for the 90,000 member-owners that we serve.”
The final day of operation for the campus branch will be December 23rd and the final day for the clinic branch will be January 27.
UICCU, which now serves anyone in eastern Iowa, as well as University students, employees and alumni, said is in the process of bidding to continue its on-campus ATMs.
