The Credit Union Difference =
More Than You Think
The Credit Union Difference
Not for profit, not for charity, but for service
Credit unions are not-for-profit financial cooperatives, owned by the people who save and borrow there. Every member has the right to vote for members of the credit union board. The majority of credit union boards are made up of volunteer members.
Unlike most other financial institutions, credit unions do not issue stock or pay dividends to outside stockholders. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees.
By current federal statute, credit unions cannot serve the general public. People qualify for a credit union membership through their employer, organizational affiliations like churches or social groups, or a community-chartered credit union.
Our critics often claim that credit unions don't pay taxes. Credit unions do pay payroll taxes, sales taxes, and property taxes. Congress exempts credit unions from federal income taxes. The exemption was established in 1937, affirmed by statute in 1951, and reaffirmed in 1998 in H.R. 1151, the Credit Union Membership Access Act, which states:
Credit unions, unlike many other participants in the financial services market, are exempt from Federal and most State taxes because credit unions are member-owned, democratically operated, not-for-profit organizations generally managed by volunteer boards of directors and because they have the specified mission of meeting the credit and savings needs of consumers, especially persons of modest means.
Palisades Federal Credit Union
Palisades Federal Credit Union (PFCU), located in Pearl River, New York is Rockland County's first federally insured community chartered credit union to serve all those who live, work, worship, or attend school in Rockland County, New York.
As of December 31, 2005 PFCU has 8,390 members who hold $123 million dollars in assets. All members of our Board of Directors are volunteers.
Our credit union was founded in 1941 and originally only served employees of the Lederle Pharmaceutical Company, a division of American Cyanamid. Over the years the credit union grew to include family members of Lederle employees. In the mid to late 1990s we added several select employee groups and in May 2002 PFCU was granted its present community charter.
Product and Service offerings also grew from our first years in operation with the addition of checking and money market accounts right on through to a variety of mortgage offerings and VISA credit and debit products.
Today, PFCU provides a full array of financial products and services including a choice of checking accounts, online banking capabilities, electronic bill payment services, many types of consumer loans, adjustable rate mortgages, Home Equity Loans and Lines of Credit, No Equity Lines of Credit, financial planning service and much more. Some of our unique services include:
- Auto Equity Loan
- Risk based lending featuring terms from between 12 to 84 months
- Savings secured VISA credit card
- Small, short-term unsecured loans, with amortization of less than six months
- Student loans
- Same rates given on both new or used vehicle loans
- Balloon Auto Loan - a lease like product
- Liberty Mutual Group Savings Plus Program
- A portfolio of services designed to help members reestablish and build damaged credit histories
Our Commitment to Serving Our Members
We want to Make the Difference
Credit unions exist to help people, not make a profit. Our goal is to serve our entire membership well, including those of modest means. We also reach out to members or potential members who are unserved or underserved. Examples of this commitment include:
- Members at Palisades Federal Credit Union can open an account for $5. Right now we have 1855 members with accounts of $30 or less. All of these members have access to our full range of financial services.
- The Federal Reserve estimates the minimum profitable loan to be $2,400. Palisades Federal Credit Union made 143 loans of $2,400 or less in the last two years.
Our Commitment to
Financial Education & Literacy
Promoting financial literacy has been a primary mission of credit unions since they were established. Edward A. Filene, the father of the American credit union movement in 1908 said, Credit unions are educational institutions. Our intent is to teach people wise money management skills they can use to make their entire lives better.
We offer four newsletters a year chock full of information on financial topics. In addition, we have started an email newsletter called PFCUnews and we also have available Home and Family Finance a personal financial magazine prepared by the Credit Union National Association. There are materials available of financial interest located in our office lobbies and on our website at www.palisadesfcu.org. Some other examples of our commitment to financial literacy include:
- First Time Home Buyers Seminars
- Wills and Estates Seminars
- Federal Student Loan Program workshop
- Seminars on Social Security Benefits and Programs
- Car Buying Seminars
- Seminars on the newest provisions regarding State and Federal Income Tax Law
- Member Financial Service Seminars on Retirement Strategies, College Funding, Long Term Care, Investment Strategies, and much more
- Making the Right Money Moves program and materials given to 6 Rockland County High Schools
Our Commitment to
Good Governance and Diversity
Credit unions exist to serve all members equally, with dignity, respect and consideration. We strive to serve everyone who needs financial services within our membership and to be sensitive to the individual needs of the various cultures we serve. Employees and volunteers reflect the diversity of our members.
We make public our process of governance and we actively reach out to our membership for their volunteer participation and continued support during Board elections. We accomplish this by newsletter articles, press releases, e-mail marketing pieces, and by holding our Annual meeting each year in a public setting.
Board, staff, and management training is actively encouraged to take various course work, which is part of everyones' goals. Besides continuing educational efforts, there is a strong commitment to our local New York State Credit Union League District of Westchester/Rockland County and its activities. Staff and board also attend state and national Credit Union conventions.
Palisades Federal Credit Union has hosted or has met with federal, state, local legislative
representatives, and credit union board, staff, and other local credit unions; providing the opportunity to
speak directly to these elected officials about those local and credit union issues that face our
communities.
Our Commitment to Community &
the Credit Union Movement
Credit unions don't just exist to provide financial services, we provide financial services for the purpose of improving lives. While our first responsibility is to our members, part of being a cooperative movement means looking beyond our walls to the larger community. This philosophy leads us to support worthwhile charitable and social causes and to work with other credit unions.
PFCU has reached out to our community by supporting and/or participating in the following events and
programs:
- Participant in New York State's Credit Unions Care for Kids Campaign
- Facilitated donations to Children's Miracle Network
- Sponsor for North Rockland High School Academy of Finance Scholarship
- Supporter of North Rockland High School's Academy of Finance summer intern program and groundhog shadow day
- Cosponsor with Wyeth Salvation Army's Angel Tree Program
- Active participant and sponsor in Rockland County's March of Dimes Walk-a-thon
- Mentoring and training of staff to smaller local credit unions
- Participant in political and grassroots campaigns to promote and protect the credit union movement to policymakers
- Sponsor of the National 6 hour Safe Driving Courses for members and community residents
- Participant in New York State Credit Union League's College Scholarship Program
- Sponsor George Hatala scholarship awards
- Sponsor Rockland County Soap Box Derby
- Annual promotion of the John Walsh DNA Life Print Program
- Sponsor for Pearl River Interfaith Council Auction
- Sponsor for local little leagues
- Sponsor Pearl River School District Child Identification Kits
- Active supporter of the United Way of Rockland County
Palisades Federal Credit Union is committed to making a difference in our member's lives and to the Rockland County community.
Palisades Federal Credit Union
300 N. Middletown Road, Suite 6
Pearl River, NY 10965
845-602-4242
www.palisadesfcu.org
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