Credit Unions vs. Banks in the Bailout Arena

Did you know that not a single credit union has ever received TARP funds? That's right! The credit union systems is healthy and sound and actively extending credit.

What are TARP funds? The Troubled Asset Relief Program, commonly referred to as TARP, is a program of the United States goverment to purchase assets and equity from financial institutions to strengthen its financial sector after the sub-prime mortgage crisis. Many large banks have accepted TARP funds to help bail them out of trouble after getting in too deep during the big home buying boom. It is these funds, in part, that are being used to supplement the loan and deposit rates these banks are offering their customers.

HFCU is proud to say the neither we, nor any other credit union, have ever accepted government funds. There was no reason for us to. When sub-prime lending first became available, HFCU researched all options and ultimately decided that it was not in the best interest of HFCU members to offer these types of loans. In fact, it is because we have been so diligent in how your credit union is run that we continue to operate normally without the assistance of your tax dollars.

As news stories of big bank bailouts continue to hit the newsstands, it's important to remind you that as a member-owner of Hershey Federal Credit Union, you can be rest assured that your deposits with us are completely safe and secure. HFCU has always taken pride in not putting members into financial situations they cannot afford. Your deposits at HFCU, including IRA accounts are insured up to $250,000 by the NCUA (National Credit Union Administration), which is backed by the full faith and credit of the US Government.