SECU: What Is A Credit Union?

In 1915, North Carolina adopted one of the very first state statutes governing the formation and operation of credit unions. Why was North Carolina one of the first states to see the need for credit unions? What was the problem?  

The principal problem was that working men and women in North Carolina lacked access to a source of credit at fair and reasonable rates. In that era, commercial banks did not lend to most consumers... just something that was not done at the time. 

Everybody needs to borrow from time to time for important purposes. What would you do if you did not have access to credit?

  The 1915 credit union statute was authored and shepherded through the North Carolina Legislature by John Sprunt Hill, the patriarch of one of the wealthiest and most prominent banking families in North Carolina. Not exactly your barefoot-in-overalls type of guy to be sure! In fact, the credit union law was the direct result of Mr. Hill's then recent travels in Europe studying credit unions and other forms of cooperatives. Mr. Hill happened to be in Europe leading a United States delegation of national financial leaders appointed by President Woodrow Wilson. They learned well; they liked what they saw! 

John Sprunt Hill was one of  North Carolina's most successful and distinguished bankers, he said...

❖ "Credit Unions are not banks. Banks are aggregations of money; credit unions are aggregations of men [and women]."

❖ "Credit Unions capitalize the character of the membership."

❖ "A Credit Union organized within a group, the members of which have no credit problems, obviously fills no need and organizations of this type should not be encouraged."

❖ "Credit Unions increase the general prosperity, and thereby improve the community and its other businesses, helping others to attain a better economic status." 

 

SECU members do not understand that SECU is not a bank. Does that matter any longer?