Conference 7.286::dcu

    Costs have increased.  Interest rates have been rising steadily
    over the past year.  The prime rate just went up again a few weeks
    ago.  My other low-interest credit cards have announced increases.
    
      Gary

    
    	16.75% is the lowest of any of my unsecured lines of credit.
	What was it before the raise?  I know it was 16.?, so the increase
    	is not all that substantial.
    
    	They do not have to justify to us why they are raising the rate.
    	Does your local supermarket justify price increases?  Or your
    	local gas station?  If prices get to high at these places
    	you simply stop patronizing them.  You are welcome to do the
    	same with DCU.

    	Joe Oppelt

    They have an unsecured credit card at 10.9%.  It will probably rise.
    The difference between 16.75% - 10.9% = 5.85%.  Seems mighty strange. 
    Both are unsecured.  
    
    >	They do not have to justify to us why they are raising the rate.
    
    That is what they try to tell us.  Problem is, I AM A MEMBER.  As a
    member they are supposed to tell me what is happening and why.  CU's are
    different than Banks and S&L's (they are supposed to be).
    
    	- mark

    re: .3
    
    Mark, are you saying that the CRT-5000 rate used to be 10.9%?  If
    not, what was it?  (I don't know; I don't have a credit line at
    DCU)
    
    Using the credit card rate is not quite an apples-to-apples comparison.
    Most every financial institution I have dealt with has had a higher rate
    for "cash advance" or "credit checking" type transactions.  The
    credit card purchase rates are usually lower.  I can't say for certain,
    but I think the bank gets a cut of the sale price on credit card
    purchases (I know _somebody_ does; I just don't know who gets what).
    
    Now, can you assume that the 10.9% rate will rise at some point?
    Well, with the prime rate around 11.5%, I'd say it's a reasonable
    assumption  8^).
    
    Should you expect DCU to treat you better?  That's a question I
    don't feel I can really answer.  I've never belonged to a credit
    union before.  Compared to the _banks_ around here, they don't do
    too badly.  But, it seems like the "membership" aspect of things
    doesn't really keep DCU from acting like most other banks I've seen.
    
    My 2 cents (or less... ;^)
    
    -- Russ

    FWIW, I know of a large bank with a variable interest rate on it's
    line of credit.  Last month, the rate stood at 16.76%.
    
    Seems like DCU's rate isn't out of line, but it doesn't seem
    particularly good, either.
    
    -- Russ

   The CRT-5000 interest rate was 16.25% before the increase.

   If I am correct I remember reading that the interest rate for the VISA card
was fixed for a certain length of time and that they would not charge any
service until a number of years after issue. It has been awhile since I
applied for it so I am taking this from memory.

        Here's another change (and again, not announced in advance
        that I know of) to the way the CRT is used.
        
        The first overdraft (e.g., bounced check) in a given month
        will be covered from the Share 1 (e.g., savings) account,
        NOT from the CRT.  The second and subsequent overdrafts
        will hit the CRT.
        
        If there aren't sufficient funds in the Share 1 (DCU will
        still leave the $5.00 minimum balance) then the remainder
        will hit the CRT.
        
        If you don't want this to happen, DCU's "workaround" is
        to move all the money (less the $5.00) to another share
        account (e.g., 2, 3, 8).
        
Jim Stratton
        

    re: .-1
       I don't believe that's a change as I had that the same situation
    occur to me a couple of years ago.
    
    							Trace

        We "overdrafted" two-three times in March, and it came out
        of the CRT each time.  We had an overdraft in April, and
        it came out of the Share 1.  (That's what prompted Roberta
        to call the DCU, and find out the info I posted in .7.)
        

    
    	If this overdraft policy is true, I think it is wrong.  My
    	savings account and my checking account are two distinct accounts
    	to me.  I consider my CRT account to be an extension of my
    	checking account.  I am surprised that they would make such
    	a policy.  They make more money charging me 16+% on my CRT
    	than they do by not apying me 5+% on my savings.  It doesn't
    	make sense.
    
    	Joe Oppelt

   I checked my statement last night since I had an overdraft last month. There
was a charge to my CRT-5000 and not my savings. I had only one for the month.

       Send a letter to DCU and tell them you want all checking overdrafts
    to come out of savings. It worked for me. I've never had more than
    1 in a month though.
                                                  Denny

    	I checked today at the CXO branch.  According to the info
    	given me, overdrafts are first taken against your CRT, and
    	when that line is exhausted, then from savings.
    
    	Joe Oppelt

    re:.13
    ....unless you request it to be taken from savings. If they said
    that is not the case they are misinformed.
                                               Denny

    This is an official response by Mary Madden of the DCU. The portion of
    that response, dated 30-May-1989, that applies to this note topic is
    included below. See note 2.22 for more information. 
    
    Your comments on this response should be posted here or directed to
    to DCU directly at Mary Madden's number (dtn) 223-6735 x207.
    (Note: New extension for Mary Madden)
        
    Carl Leeber
******************************************************************************
    
         RE: 163.7
    
             There seems to be some confusion regarding the 
             CRT--Overdraft Protection.  In most instances, when there 
             are insufficient funds in a member's sharedraft account, 
             our system automatically scans the member's account for 
             an available line of credit (ie. CRT, Home Equity Line of 
             Credit).  Providing there is an adequate balance in their 
             line of credit, the sharedraft will clear.  If funds in 
             the line of credit are unavailable, the system then scans 
             the Primary Savings.  Under Federal Regulation D, 
             overdraft transfers from Primary Savings (S1) to 
             sharedraft are limited to three (3) per month.
         
             DCU offers a number of alternate exception paths for 
             draft clearing.  When a member signs a CRT loan 
             agreement, these alternatives should be discussed with 
             the DCU loan officer.  If a member is uncertain as to 
             their sharedraft clearing path, we encourage them to 
             contact the loan servicing department at DTN/223-6735 or 
             508/493-6735.
         
******************************************************************************

        re .15 and
        
>             Credit).  Providing there is an adequate balance in their 
>             line of credit, the sharedraft will clear.  If funds in 
>             the line of credit are unavailable, the system then scans 
>             the Primary Savings.  Under Federal Regulation D,
        
        There was plenty of available credit when the sharedraft
        was cleared from the Primary Savings account.
        
        I'll call Mary directly.
        
Jim Stratton