Frequently Asked Questions

Forms of Identification

Operations and Products

Marketing Strategies

Financial Education

Forms of Identification

What do you use for identification purposes when opening accounts?

Official government issued identification with a photo that includes the name, address, and date of birth.

Do you accept Matricula Consular cards?

Yes, we do accept the Matricula Consular.

Do you accept temporary visas?

Yes.

Do you require a Social Security Number or will you accept an ITIN (Individual Tax Identification Number) from new members?

We accept both the SSN and the ITIN. We also open non-interest-bearing accounts without a SSN or ITIN. All members must show official photo identification.

What identification do you require for lending purposes?

A valid SSN or ITIN and necessary documentation proving income and debt.

Will you lend money to someone with a Temporary Visa or Green Card?

Yes. As long as a borrower has a valid SSN or ITIN, we can report their credit to the national credit bureaus.

If a member gives you identification that establishes who they are, how do you verify it?

We use ChexSystems, a network comprised of member banks and credit unions that regularly contribute information on mishandled checking and savings accounts to a central location. This information is shared among member institutions to help them assess the risk of opening new accounts. See ChexSystems's website for more information (www.chexhelp.com). Our account lists are checked monthly to meet OFAC requirements through services provided by the State Employees' Credit Union.

If you find out someone is undocumented, how do you handle it?

We do not ask members their immigration status. We treat all members equally. Our mission is to serve those who do not have bank accounts and have been marginalized from the U.S. financial system. Our only concern is that the person meets our requirements as outlined in our member identification policy, which complies with federal regulations.

Do you make loans to members with no credit history?

More than half our loans go to members without credit history. These members are generally a good credit risk, because they do not like debt and are accustomed to paying their bills on time.

How has this impacted your collections area? Do you know what your losses have been?

We have not discovered a correlation between documentation status and losses. Losses appear to be primarily affected by how proactive servicing is and whether delinquencies are immediately addressed. We believe that it is wrong to charge higher rates on loans to our immigrant members, given their outstanding repayment record.

Operations and Products

Do you have all your forms in English and Spanish?

Yes.

If yes, which forms do you offer in English and Spanish?

We offer all forms in Spanish including Promissory Notes, Account Signature Forms, Disclosure Forms (Conflict of Interest Policy, Privacy Policy, Account Policies, Member Identification Policy, and Substitute Check Policy).

Do you have your phone system in English and Spanish?

Yes.

How many of your employees are bilingual?

All of them--100%.

How do you handle check cashing for members and/or non-members?

You must be a member to cash a check.

Do you charge a fee for check cashing?

Beginning in January 2005, we will begin charging a $2 fee to cash checks for members who have less than the amount of the check in their bank account. For example, if a member's savings account balance is $400, he can cash any check that is less than $400 for free. We hope this will encourage our members to deposit their checks instead of carrying large sums of money, to use the CashPoints machines, and to maintain a good balance in their bank accounts.

What hours are you open to service your members?

We are open Monday through Thursday from 9:00 a.m.- 5:00 p.m.; and Fridays from 9:00 a.m.-6:00 p.m. (We stay open late on Fridays to accomodate those members who work during the day.)

Do your hours vary between branches or do you utilize a standard schedule for all locations?

Our schedule is standard among all our branches.

What do you do to be involved in the Latino community?

LCCU is involved in the community in many different ways. First, the Latino Community Development Center (LCDC) is LCCU's membership base. LCDC is a type of non-profit organization (501(c)(3)) that was created to support Latino-led community based organizations and foster local and statewide efforts to empower low-income Latinos.

Second, LCCU writes financial education articles that are published in various Latino papers each month.

Third, LCCU participates in many local community events, like, for example, La Fiesta del Pueblo..

Fourth, LCCU offers presentations and financial education classes in our branches, in people's homes, at work sites, and at other local community organizations.

What types of issues/challenges have you encountered when serving the Latino market?

One of our main challenges is education. The majority of our members have never had a bank account before. Every LCCU employee is dedicated to educating members about how the financial system works in the United States. We also provide financial education classes on basic topics such as how to use your accounts, how to save and budget, an introduction to taxes, how to build your credit, how to buy a car, and how to buy a house.

Marketing Strategies

What is it specifically about your credit union that attracts a market that is skeptical about banks? How do you overcome mistrust?

All of our staff is bicultural and bilingual, and most of them are immigrants themselves. As such, members trust a familiar face; a person who can speak their language and identify with the person they are serving. We also partner with trusted community organizations, such as churches and Latino-focused community centers. Generally, we market through these groups, who already have this trust, rather than through the mass media.

Once the door is open, we work hard to maintain that trust. We take a lot of time to help our members understand the power of savings, federal deposit insurance, and a good credit history. We teach free financial education classes. We price our products to best serve our members, and don't have hidden and/or excessive fees.

What types of marketing promotions have you offered to your members?

We offer various types of marketing promotions to our members. Some examples are as follows:

Mother's Day Wire Transfer promotions.
"Bring a Friend" Promotions: (If you refer a friend or relative who becomes a member, you can enter a raffle to win various prizes, or if you refer a friend or relative who becomes a member, you receive either a free telephone card or a free wire transfer).
Grand Caravan promotion where we attended various local events during Hispanic Heritage Month to open accounts and help people apply for the ITIN.

Do you utilize bilingual marketing materials?

Yes.

Do you utilize nametags or signage that indicates you have bilingual employees?

The name of the credit union is bilingual (our logo has the name in both Spanish and English) and all of our branch employees wear nametags. All of our signage and marketing materials are bilingual and reiterate the fact that every employee is bilingual.

Financial Education

Do you offer any financial education to your members?

Yes, LCCU has an established financial education program. With the help of the National Endowment for Financial Education (NEFE), LCCU developed a financial education curriculum in both Spanish and English as a Second Language. The curriculum includes the following topics:

How to Manage your Accounts
How to Save and Develop a Budget
How to Develop your Credit History
How to Buy a Car
How to Buy a House, and
An Introduction to Taxes.

We offer free classes on these and other topics twice a month at each of our branches. We also teach classes outside of our branches at work sites, churches, and other local community organizations.

In addition, all of our employees educate members during our daily interactions with clients. Since many of our members have never had a bank account, it is important to educate them from the beginning to help them establish themselves in the U.S. financial system. Member Service Representatives teach members how to use an ATM, how to complete a withdrawal or deposit ticket, how to withdraw and deposit money into their accounts, how to balance their checkbooks and more. Loan Officers teach members what credit is, how to build credit, how to read a credit report, how to fix a mistake on a credit report, and more.

How do you attract members to the financial education classes?

LCCU promotes the financial education classes through various sources: internally at each branch (flyers distributed, employees notify members), monthly statement inserts, outreach with other community organizations, participation in local events geared toward the Latino community, church bulletins, and local Spanish language media. Oftentimes, the media has calendars with local events where organizations can advertise for free.

We have also found that offering classes outside of the branches, in places such as work sites, churches, and other local community organizations, is an effective way to reach more people, particularly non-members.