America's Credit Unions Celebrate 100 Years of Service to Members
New Mexico Educators Federal Credit Union is already 72 years old, but we join credit unions around the country in celebrating a wonderful milestone: formation of the nation's first credit union, La Caisse Popularie St. Marie in New Hampshire in November 1908. Today known as St. Mary's Bank, it continues to thrive as a credit union serving its member-owners.
And 1909 marked another significant event in credit union development, with the passage in Massachusetts of legislation enabling formation of credit unions.
The American credit union movement began in New England 100 years ago. Those credit unions began as a social movement designed to help people live better lives through access to essential financial services.
Early credit union pioneers identified a need for a cooperative source of fairly priced credit at a time when it was not available for average consumers. Throughout its history, the credit union movement has remained true to these philosophical -- yet pragmatic -- roots.
In 100 years of growth and evolution, credit unions have continually improved service to members. And today, when so many other financial institutions are struggling in a weakened economy, credit unions are strong because they stay true to their original purpose -- people helping people.
And by paying lower interest on loans and fewer and lower fees, and receiving higher earnings on shares and deposits, credit union members earn real financial benefits - about $240 a year per household, or $10.9 billion a year for all members.
HIGHLIGHTS OF AMERICAN CREDIT UNION HISTORY
1908 - First U.S. credit union opens it doors to serve members.
1909 - First U.S. credit union chartered in New Hampshire; first credit union law passed in Massachusetts.
1934 - Federal Credit Union Act passes; Credit Union National Association forms.
1937 - Congress passes the federal tax exemption for credit unions.
1970 - Congress creates National Credit Union Administration and National; Credit Union Share Insurance Fund.
1980 - Legislation authorizing share drafts (checking accounts) is signed by President Jimmy Carter.
1991 - Operation Grassroots rally held on the National Mall in Washington, D.C.
1996 - Credit Union Campaign for Consumer Choice is launched after D.C. Court of Appeals rules the Federal Credit Union Act doesn't permit multiple common bonds within one field of membership.
1998 - Credit Union Membership Access Act passes and is signed into law by President Bill Clinton.
2008 - Credit unions survive financial system meltdown.
For more information, visit www.cuna.org.
Source: Credit Union National Association
