Caution If You Bought or Are Thinking of Buying East Coast Credit Union GICs | Page 5 | GIC discussions | Discussion forum

Mortgage defaults at the CUs I have looked at are extremely low.

It's true that many CUs were formed because their members were being turned down by banks - banks that were prejudiced against them because they were new immigrants, didn't speak English well, had blue collar jobs, etc. So those communities banded together and supported each other, and it worked out well.

At one of the CUs I belong to, the guy I deal with, who is a CFP, regularly tells mortgage applicants to look for less expensive properties even though they might qualify for more, simply because he doesn't support them stretching themselves too thin. He firmly believes they should also have some money left for enjoying life. He actually tries to do what's best for members. This is a concept that hasn't reached the banks and never will.

Another workaround in some cases will be to join the CU in question on your own before buying the GIC from the broker. It won't work in every case, but worth a shot if the alternative is missing out on a GIC you wanted to buy.

canadian.100 said

HermanH said
Just got off with Kevin Rotenberg and told him about the ECCU and NSCUDIC discoveries posted on this thread and he is still adamant that ECCU does what is needed to ensure that their GICs are fully covered. He still believes that he would never sell a GIC that wasn't insured. I told him that wasn't the case and that ECCU did not issue a courtesy share the way DUCA does. He asked me to send him any evidence to the contrary.  

He probably does believe that - but reality is there is nothing documented anywhere and particularly by NSCUDUC in NS nor by FSRA in Ont that GICs sold via Agents are covered without being a CU member.
Bottom line - in court it likely could not be proven that purchasers are insured under FSRA if they are not a CU member which is stated as a necessary condition on FSRA site.
This is another amateur issue related to CUs which surely can be easily resolved by a statement from NSCUDUC and FSRA and/or the GIC agents IN WRITTEN form, not just "I believe...". Courts need documentation not just "beliefs".  

Kevin has posted on this site & is aware of the concerns from members of this thread. It is telling that he as of yet has not come to this site with a written
explanation on why there is no worries & reasons why.

Loonie:

It's true that many CUs were formed because their members were being turned down by banks - banks that were prejudiced against them because they were new immigrants, didn't speak English well, had blue collar jobs, etc. So those communities banded together and supported each other, and it worked out well.

And women. Don't forget women, who I'm old enough to remember being "unbankable" without a testosteronic guarantor or representative.

Don't even ask about gays or non-binaries. Those folks were considered CRIMINALS!
RetirEd

savemoresaveoften said

I think all one has to do is to confirm one will indeed get a membership, proven by an assigned membership number when signing up with a new CUs thru a broker.  

I'd be interested to hear if anyone has succeeded in doing this, and which CU was involved. I've never bought a CU GIC through a broker.

Loonie said

I'd be interested to hear if anyone has succeeded in doing this, and which CU was involved. I've never bought a CU GIC through a broker.  

think one can just ask the broker regarding a membership will indeed be set up and there will be a member ID to verify (make that a condition of your placement of a GIC). If the broker refuses to, just walk.
On my Equity CU certificate, it shows my member ID and a $20 membership share.
Mind you that is AFTER the fact I placed my GIC with the broker. At the time, it was also assumed that all GICs placed are insured (as thats the main selling point) and we did not know about the ECCU issue.

Hi All, this is Kevin Rotenberg from GIC Wealth. My name has been frequently spoken of in this thread and I felt strongly that I should address your concerns. Firstly, I sincerely appreciate and understand your concerns. Please rest assured that the first consideration we as brokers/agents make in choosing to offer an institutions GIC is their guarantee. Who guarantees it, and to what amount. While I am highly confident that every depositor with East Coast CU (ECCU), whether through a broker or otherwise, is insured by the Nova Scotia Credit Union Deposit Insurance Corporation (NSCUDIC) up to $250,000, I have asked a VP at ECCU to prepare a response. He has assured me this should be completed shortly. I am hoping that this will put all interested parties at ease and this issue to rest.

At no point, past or present has any investor with ECCU not been insured to the available limits, in the event of a failure. I would like to add, there is nothing more significant in the Deposit Broker space than an institutions guarantee. My clients financial security is of the utmost importance. My office would never have offered an institutions GIC without being made aware of their guarantee.

Since 2002, GIC Wealth Management Inc. has over 21 years of providing guaranteed investments, and has processed more than $2 Billion in investments from over 40 different institutions. In addition, we are members of the Registered Deposit Brokers Association (RDBA). All members need to complete criminal background checks and are vetted before they are accepted. In addition, CDIC, FSRA and all other major Government Regulators are fully aware of the RDBA and the role it serves in our financial system.
I would welcome your phone calls with any questions or concerns.

Thank you,
Kevin Rotenberg, 1-866-228-9442 xt. 373

GR said
The members' shares problem with ECCU has been rectified. (Yes, Kevin Rotenberg, there was a problem, even if you deny it.)

I have seen the letter sent this week to brokers from the V.P., Finance & Corporate Services at ECCU, confirming that deposit holders investing through brokers become Associate Members, with deposit insurance coverage from NSCUDIC.  

Can you post and share it here ? I hope that rings the alarm bell for all the brokers out there to now do their due diligence to confirm every FI they use are indeed dot the Is and cross the Ts when it comes to insurance coverage.

The original post was/is
"Caution If You Bought or Are Thinking of Buying East Coast Credit Union GICs"

After reading some of the previous posts my head went straight to how the SEC in the USA on multiple occasions declared it was 100% safe to invest with Bernie Madoff .
And we all know how that turned out.