Faulty Credit Union Categories | Site suggestions | Discussion forum

When I first read the title to this thread, I thought that there had been a typo in the name of a new credit union; Faulty Credit Union was meant to be Faculty Credit Union.

But then I discovered it was the categories that were faulty, not the credit union.

But if there was one credit union in the running for the name Faulty Credit Union, I know which one I would nominate.

SustainableEconomist said
Hi there, I love this website!

I've noticed that Wealthsimple is labeled as a credit union on its profile, but it is not.

Meanwhile, Alterna and motusbank are no labeled as credit unions when they are 100% owned by credit unions!

Can this please get updated? Thanks!!  

Noticed the error re: Wealthsimple, too, but didn't get around to pointing it out.

However, I cannot agree with labeling Alterna Bank and Motus Bank as 'credit unions'. They are not, and their parent companies, the credit unions, cannot be obliged to 'rescue' the subsidiaries by CDIC/OSFI if they do not want to. Moreover, and perhaps crucially, we set the 'credit union' flag in the Profiles page to signify they have CDIC insurance, which they do not.

The CU flag should thus be set to 'no' for these entities.

You could, however, add a note below, if it's felt it was needed, that their parents are credit unions.

Itellyouwutt said

Agree.

Motusbank is a bank not a credit union. Same with
Alterna Bank. Eligible deposits in both of them are covered by CDIC, not FSRO.

Not sure how either of them could be considered credit unions simply because they are owned by credit unions.

FYI Alterna Bank's official name is CS Alterna Bank, but it does business as Alterna Bank (brand/trade name).

Both CS Alterna Bank and Motus Bank (motusbank) appear on the CDIC registry page.  

Yep to all of that. I would also support using the legal entity names of CS Alterna Bank and Motus Bank, rather than the trade names, in the HISA and GIC comparison charts as well as the Profiles page, too. 🙂

SustainableEconomist said

Ok, thanks for the explanation! Yes, for me and my clients (I share your list evangelically) it is important information that their parents are credit unions. We tend to prioritize community impact and want to keep our money in the cooperative system. I will continue to show people that they can look at the Parent company in your database.

Any idea why Alterna & Meridian needed to create wholly-owned banks? I find it unnecessarily confusing   

It is needlessly confusing. For Alterna, the option to continue federally was not an option at the time, as CS Alterna Bank predates federal credit unions. For Motus Bank, though, that was launched after the option to continue federally was made. I'm not sure why Meridian went expensive, build-your-own-bank-subsidiary route that had existed for decades. One of them could have been the capital requirements being more stringent federally, and the other of which would, obviously, mean that all of Meridian's membership would benefit from enhanced consumer protection measures overseen by FCAC and consumers could also turn to a banking ombudsman, for free, like OBSI or ADR Chambers.

Increasingly, credit unions are preferring to continue as federal credit unions. We've had three, including UNI Financial (New Brunswick), Coast Capital Savings (British Columbia), and Innovation (Saskatchewan), with a fourth, First West and its three division trade names (British Columbia) due in 2024. Coast Capital had hoped to grow its business outside of B.C. by providing a third option, for provincial credit unions to merge with them, but of those considering federal incorporation, they seem to be preferring to go it alone (and good on them!).

Cheers,
Doug

There are actually a LOT of things Canadian banks can do that credit unions can't; I don't pretend to understand many of them. Amex Bank and Citizens Bank (under the VanCity umbrella) are examples of this. I don't know all the details, but that's also what Coast Capital said when they federalized. They also went into dizzying detail as to the effects of decreased deposit insurance, as some deposits would have to be grandfathered. They no longer qualify for now-unlimited BC Credit Union coverage.

December 2, 2023 9:37 pm
Peter Admin
I've added new screenshots for the Access Credit Union interface now: https://www.highinterestsavings.ca/profile/hubert-financial/

Peter, Thank you for the updates.
It should be noted that on the Interface screenshots, Open Account choices,
Hubert customers do not yet have these options available to them.
When Hubert customers go to this page the following noticed is posted
"Online account opening is available to Access Credit Union members only at this time". We are required to phone Hubert and speak with a customer service rep. to arrange for account updates or changes.