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Faulty Credit Union Categories
November 22, 2023
7:48 am
SustainableEconomist
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November 22, 2023
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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!!

November 22, 2023
8:05 am
Peter
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Thanks for pointing that out! Those entries have now been fixed.

November 22, 2023
11:29 am
monitor
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I find your site very informative and refer to it regularly.
Please note, that since the Access/Hubert Financial integration of Sept 24, 2023,
some of information contained under the "HISA chart" for Hubert Financial
no longer applies.
Since everything is now through the Access CU site,
the Interface screenshots are no longer valid and should be removed.
All the reviews that the were posted before the Access/Hubert integration
no longer apply.
As you may be aware, to be polite, Access have messed things up big time for
for long time Hubert Financial/Sunova customers.
Access have made what used to be an easy productive experience, anything but!
They continue to make mistakes. For a financial Institution that can't make the most basic banking transactions without error, to say the least is problematic.

November 22, 2023
1:29 pm
Rail Baron
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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. sf-wink

November 22, 2023
3:53 pm
Itellyouwutt
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Rail Baron, you may be thinking of Fawlty Credit Union, which is headed by Basil Fawlty and his wife Sybil...

fawlty_towers_sybil_basil.jpg

November 26, 2023
3:30 pm
Doug
British Columbia, Canada
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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.

November 26, 2023
3:45 pm
Itellyouwutt
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Doug said

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.  

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.

November 26, 2023
4:13 pm
Doug
British Columbia, Canada
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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. 🙂

November 27, 2023
2:48 pm
SustainableEconomist
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Doug said

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.

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

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 sf-yell

December 2, 2023
9:59 am
Doug
British Columbia, Canada
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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 sf-yell  

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

December 2, 2023
9:37 pm
Peter
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monitor said
[...]
Since everything is now through the Access CU site,
the Interface screenshots are no longer valid and should be removed.

I've added new screenshots for the Access Credit Union interface now: https://www.highinterestsavings.ca/profile/hubert-financial/

December 3, 2023
6:33 am
RetirEd
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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.

RetirEd

December 3, 2023
10:35 am
Doug
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RetirEd said
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.  

A minor point of clarification...Coast Capital Savings deposits actually ceased qualifying for CUDIC of BC deposit insurance on the day of continuance (November 1, 2018, I believe), but pre-existing term deposits continued qualifying for unlimited deposit insurance by CDIC, just as demand deposits qualified for unlimited deposit insurance for six months by CDIC, under federal continuance regulations. So essentially, CDIC took over the deposit guarantee that CUDIC had made.

I strongly disapprove of Coast Capital's implementation of federal continuance, but generally prefer federal continuance to federal bank subsidiary incorporation due to the economies of scale it provides (i.e., lower costs), significantly better deposit insurance (even if there's an insurance cap per depositor and deposit category), and greater consumer protections.

Cheers,
Doug

December 9, 2023
8:32 am
monitor
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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.

December 11, 2023
7:35 pm
RetirEd
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Doug: What you said.

RetirEd

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