PLEASANTON, Calif.-After record earnings in 2012, $3.8-billion Patelco Credit Union has installed "The Member Giveback" for qualified members in 2013.
Ryan Misasi, EVP and chief retail officer, told Credit Union Journal the program offers discounts on auto loan rates, and waiving of home loan lender fees and credit card balance transfer fees.
"Our members contributed to our outstanding success in 2012-it was a record year for Patelco-so we are committed to giving back to them," he said. "The Member Giveback program is only for members who joined on or before Dec. 31, 2012."
For qualified members, Patelco will be waiving the lender fee on first mortgages taken out in 2013, which is $735, Misasi explained. On auto loans, the CU will take 50 basis points off the best rate members normally would qualify for down to its floor rate, which is 1.99% for a new or used car. Also, Patelco will be waiving any balance transfer fee on any credit card product, which could mean up to $75.
In addition, Patelco will be hosting multiple regional events that include the opportunity to win a $10,000 prize, plus other cash giveaways. There will be six events held at multiple branch locations May through October.
"All told, we estimate this will be a $5 million giveback," Misasi said. "We determined this based on assuming we will do the same amount of business in 2013. We earned slightly more than $50 million in 2012, so the giveback represents roughly 10%."
In calculating the giveback Patelco did not account for any type of increase in products or production, "we just wanted to give back to our members," he continued.
"We wanted the amounts to be meaningful. They are member-owners and we wanted them to feel good. We think this is a meaningful program and we are pretty excited about it."
Patelco will be promoting The Member Giveback through multiple e-mails, website promotions, online banking ads, newsletter articles and statement inserts, along with the regional events, Misasi added.