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Tonight when I logged into my credit union account I saw a message that my credit union wants to merge with Sunwest Credit Union.

Heres the thing I still owe as of April 4, 2011 I owe $5770 on the car at 7.25 pmt $220 every two weeks
I still owe on new loan that I had just 1 month $770 pmt $30 1 1/2 years

CC will be paid on Thursday.

I kind of scared as I don't want to sell stock to pay off loans.
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401kinvestor: "Tonight when I logged into my credit union account I saw a message that my credit union wants to merge with Sunwest Credit Union.

Heres the thing I still owe as of April 4, 2011 I owe $5770 on the car at 7.25 pmt $220 every two weeks
I still owe on new loan that I had just 1 month $770 pmt $30 1 1/2 years

CC will be paid on Thursday.

I kind of scared as I don't want to sell stock to pay off loans."


Why would a merger require you to pay loans any faster than you otherwise wouldhave?

Confused, JAFO
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My fear the current credit union would demand to pay off immmediately as it closing down.
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If it is merging with another credit union, then won't you become a share member of the new credit union? Since credit unions are member-owned, I would not think they would do abusive to their customers/owners.

Fuskie
Who suggests learning the details of the merger and perhaps talking to your loan officer before panicking...
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401kinvestor: "My fear the current credit union would demand to pay off immmediately as it closing down."

Is it a deamn (or callable) loan? If not, I doubt there is much too fear.

And you said the current CU was merging, presumably the successor will carry on. It seems unlikely that the successor would go to the trouble of merging just to close down.

Regards, JAFO
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Heres the thing I still owe as of April 4, 2011 I owe $5770 on the car at 7.25 pmt $220 every two weeks
I still owe on new loan that I had just 1 month $770 pmt $30 1 1/2 years

CC will be paid on Thursday.

I kind of scared as I don't want to sell stock to pay off loans.


I agree with others that you shouldn't have any concerns about the merger. The new CU will service your loans. That said, I think you should concern selling some stock to pay off your car loan unless you are making a killing in the stock market. The 7.25% loan is a high hurdle to beat in the market.

PSU
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Tonight when I logged into my credit union account I saw a message that my credit union wants to merge with Sunwest Credit Union.

Heres the thing I still owe as of April 4, 2011 I owe $5770 on the car at 7.25 pmt $220 every two weeks
I still owe on new loan that I had just 1 month $770 pmt $30 1 1/2 years


As a successor organization to your credit union, Sunwest will be bound by the language of all contracts it assumes. This would include any contracts you signed as part of the process of taking out installment loans. It's very unlikely that the payment schedule for these two loans will change.

The point of merging is not to shut down a credit union. The surviving credit union wants to expand scale and grow membership. The non-surviving credit union wants to get better services for its members than it can economically provide given its current scale. You are currently a member (and thus, part-owner) of your credit union. When that credit union merges into Sunwest, you will be a member (and part-owner) of Sunwest. It would be a good idea to take a look at what Sunwest offers and see if that's a good fit for what you need from a credit union.

Patzer
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Credit union mergers are made as seamless as possible for members. You might receive a new account number or loan number. The address to send payments might change.

The name on new checks, ATM cards and credit cards will change. You will be notified of when changes will be required. There will be a transition period.

Credit lines could be reevaluated, but a car loan isn't revolving credit. The only terms under which most car loans can be terminated by the issuer are default or the car being destroyed. The new credit union will be bound by the original contract. If you are concerned, read your contract.

The only annoyance I have had with credit union mergers was that I already belonged to both. It didn't seem reasonable to keep two accounts with the same credit union. Although I wanted to keep the orginal account number, it was easier to accept the new account number and merge both accounts into it.
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My fear the current credit union would demand to pay off immmediately as it closing down.

Take a deep breath. Your credit union is not closing down, it's merging with another entity. We have had this happen with the bank we did business with and it was completely seamless. All account numbers stayed the same, the loan terms stayed the same, heck, even the cashiers in the lobby stayed the same. The biggest difference was getting new checks and debit cards with the new name on them. And our bank went through this twice in 3 years. No worries.

LWW
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It's a contract. Terms are unchanged. Companies buy, sell, and move around loans all the time.
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Talked to cu. They said they experienced alot of losses the last 2 years. If it does not go thru they have to summit a plan to NCUA how they are to rebuild capital. One thing they did say is they plan to cut shared banking.

401kinvestor is NOT happy about what I just learned.
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they plan to cut shared banking.

What is shared banking?
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That said, I think you should concern selling some stock to pay off your car loan unless you are making a killing in the stock market. The 7.25% loan is a high hurdle to beat in the market.

The economy isn't is the best of shape. Market returns aren't the only reason to keep assets over paying off a loan. Depending on the OPs overall financial situation, keeping the assets and paying some interest maybe a safer position.
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Shared branch banking is where I belong to one credit union that has shared branch banking and can go to another credit union that offers shared branch banking and conduct my business and they get charged a fee for doing the transaction.
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The economy isn't is the best of shape. Market returns aren't the only reason to keep assets over paying off a loan. Depending on the OPs overall financial situation, keeping the assets and paying some interest maybe a safer position.


So far this year I made in realized gains Schedule D transactions this year of the stock market is $842.57 in my individual brokerage account.

The $1000 I borrowed recently I bought JPM 5.85% long bond under par. Eventually the market will realize JPM paper is worth more than par. In the mean time I can collect some interest every 6 months. Right Now I have 2 different bonds of JPM.

Seriously I was extremely very stressed this morning about this I emailed both instutions and ask the question that I concerned about. I'm ok guys I'm spoiled by being in a very small cu where I don't have to show by drivers licence to deposit money at the branch. I gave up banking at the large banks in Arizona because I got tired of being nickled and dimed to death.

As far as my vote on the merger I voting against it. I pray that I'm making the right decision.
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As far as my vote on the merger I voting against it. I pray that I'm making the right decision.

Doubt that it matters much. Even if the current merger doesn't go through, since your CU is to the point where their regulator is requiring them to submit a capital plan, some type of merger is likely in their future, and it may not be in control of the membership.

AJ
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I'm ok guys I'm spoiled by being in a very small cu where I don't have to show by drivers licence to deposit money at the branch. I gave up banking at the large banks in Arizona because I got tired of being nickled and dimed to death.

Im not sure what you mean there. I live in a big city and my bank is very large and I have never had to show a drivers license to deposit money.
To withdraw money I have to enter my pin, but I dont see that as an onerous requirement.
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I decided having look at the different banks all week and credit unions and who has biweekly loan payments available I opened a checking and savings account at Sunwest FCU. I'm talking to the rep there to see if I can refi the car balance of $5,566.92 to a lower rate.
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