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PAY DAY LOAN CONSUMER INFORMATION

MECU's own Aziza Gary gave a very personal interview to Eileen Ambrose of the Baltimore Sun about her experience with payday loans. She shared this information to help others, particularly our members, who find themselves in a similar situation.

Payday loans are small cash advances on a borrower's next paycheck. Their hefty fees translate into annual interest rates of several hundred percent, if not more.

Maryland essentially blocks payday lenders from setting up shop here by capping the interest rate that can be charged on loans. But the Internet opens the door to payday lenders from other states and countries that can easily sidestep any state's consumer protection laws.

"Internet lending makes it very, very easy because you do that in the privacy of your own home," says Jean Ann Fox, director of consumer protection for the Consumer Federation of America. "Once you start, you get onto a debt treadmill." The link below will take you to the article.

Payday loan article

For more information...

To learn more about the payday loan consumer information, click the following links:

PayDay Loan Facts

PayDay Loan Help

As a benefit of your membership, MECU is providing members with free access to money management and financial education services through partnership with Accel Members Financial Counseling.

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EXCITING NEWS ABOUT MECU's 2007 CASH BONUS

Since 1981, MECU has paid its members a cash bonus at the end of the year. This cash bonus came in the form of an extraordinary dividend and loan interest rebate. In 2006, MECU returned $4.25 million to members in good standing!

In late 2006, MECU's Board of Directors set aside $4.25 million for 2007 cash bonuses in the form of extraordinary dividends and loan interest rebates. And, members won't have to wait until the end of the year to receive it! MECU will distribute half of the cash bonus in June. The second half will go out in December.

MECU's 2007 Cash Bonus means you will earn more interest on your deposit accounts - including all CDs, IRAs and money market accounts - than the posted Annual Percentage Yield (APY).

We cannot say how much more interest you will receive. It depends on the number of MECU members and the amount of interest you received on your deposits for the period. But, here are examples from 2006:

• If you had a 60-month CD with an APY of 5.50%, the 2006 cash bonus would have raised the APY to 6.27% -- an increase of .77% because of the 2006 cash bonus.
• A 9-month CD with a 4.50% APY, because of the 2006 cash bonus would have had an effective APY of 5.13%.

And if you have a MECU loan in 2007, you will receive a cash bonus based on the amount of loan interest you have paid during each period.

The amount of interest that will be returned to you will be a percentage of the amount you pay in each of the two cash bonus periods: January 1 to June 27, 2007 and June 28 to November 30, 2007.

Let's look at what the 2006 cash bonus returned to members. We returned 6.26% of the interest members paid in 2006 at the end of the year. That meant:

• If you had a car loan and paid $1,500 in interest during 2006, MECU would have returned $93.90 to your share account in December 2006.
• If you had a mortgage and paid $9,600 in interest during 2006, MECU would have returned $600.96 to your share account in December 2006.

To Qualify for Cash Bonuses

• To receive the 2007 cash bonus, you must be a member in good standing with a minimum of $5.00 in the base share savings account at the time the loan interest rebates and extraordinary dividends are paid.
• Share and deposit accounts (such as checking, money markets, Christmas Club, etc.) closed prior to the distribution dates will not receive a cash bonus. The interest rebate will be paid on loans that were paid off during the period, as long as your share account is open.
• Cash bonuses are not paid on accounts with loans in default.
• If your loan is delinquent (even one day) the loan interest rebate portion of the cash bonus is applied to your loan balance.
• Loan interest rebates are not paid on VISA® accounts. Platinum VISA accounts do qualify for VISA rewards points.

With MECU's high rates on deposits and low rates on loans, plus the cash bonus, now is the time to keep all your accounts at MECU!

(1.16.07)

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BALTIMORE CITY EMPLOYEES NEW PAY "DAY"

Attention City Employees:

MECU has been advised that a new pay "day" will be going into effect for some City employees. For those City employees who are MECU members, you will be happy to know that MECU will automatically make the following change to all loans that you may have here with us.

• MECU will automatically change due dates on loans to reflect your new pay "day".
• There will be no derogatory consequences on your MECU loans as a result of the City's change in payday.

MECU also encourages you to contact all other companies whom you have authorized to withdraw funds from your account and advise them of your pay "day" change. Notifying other companies in advance may help you avoid any late fees, or penalties.

MECU appreciates your business and hopes that you find this change a pleasant one.

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THE WESTVIEW CENTER BRANCH IS NOW OPEN

MECU is pleased to announce the opening of our newest branch at 5910 Baltimore National Pike. As part of our continued effort to provide excellent member service, we opened the doors to our 6 th branch, known as the Charles L. Benton Jr. Westview Center Branch on Wednesday, September 13, 2006. Please stop by Monday through Thursday 9 am to 4 pm, Friday 9 am to 5:30 pm and Saturday 9 am to 3 pm. We also have extended drive through hours on Monday, Tuesday, Wednesday and Friday from 7:30 am to 5:30 pm and Thursday from 9 am to 5:30 pm.

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SMALL BUSINESS SERVICES ARE NOW AVAILABLE AT MECU

If you own a small business and are looking for financial services with a personal touch, look no further. Introducing small business services from MECU.

MECU’s services for small enterprises include checking, savings, loans, commercial CDs, a commercial money market account, a corporate credit card and billpayer. This full array of services comes with MECU’s excellent rates and a level of professional expertise and personal care, which only the largest credit union in Baltimore can offer.

For 70 years, MECU has helped thousands of Baltimore residents reach their financial goals… let us do the same for your small business.

For more information contact Frank Ciesla, Director of Business Lending at fciesla@mecu.com or complete the attached sheet and mail it or fax it to the following address. We will get back to you within 24 hours.

Municipal Employees Credit Union of Baltimore
7 E. Redwood Street
Baltimore, Maryland 21202
Attn: Frank Ciesla
Director of Business Lending
Fax number: 443-927-3658

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MECU JOINS THE ALLPOINT NETWORK

Starting July 1, MECU members can use their MECU ATM* or MECU VISA Debit Card at the Allpoint network of 32,000 ATMs nation-wide without paying foreign ATM fees. There are over 800 Allpoint ATMs in Maryland, Washington, DC and Virginia, including many Giant, Rite-Aid and Target stores.

Want to check if the ATM at your favorite store is on the network? Just go to www.mecu.com to link to Allpoint or go directly to www.allpointnetwork.com and put in your zip code or city.

There are no sign-up fees so you can start using Allpoint today. MECU's new relationship with Allpoint is another step in our providing great service to our members.

When using an Allpoint ATM, you may see a message stating that you will be assessed a surcharge. If one appears while using an Allpoint ATM, simply enter "Yes" to accept surcharge and proceed with your withdrawal, there won't be a surcharge on your receipt.

*Members with a MECU no-frills ATM card will be assessed a surcharge when using an Allpoint or any other non-MECU ATM.

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OPEN A NEW MECU CHECKING ACCOUNT ONLINE

It's never been more convenient to take advantage of MECU's free interest-bearing checking account. All that's required is your MECU online banking PIN.

Here's how:

If you don't yet have your online banking PIN, click here to get your PIN online. It's simple, free and only takes a few moments.

MECU members can now enjoy the convenience of more locations through a unique national network of shared branches called Credit Union Family Service Centers. At over 1,000 participating credit unions across the country, MECU members will be able to perform a number of transactions on their MECU accounts as well as withdraw cash at ATMs.

Here are the CU Family Service Center branches closest to Baltimore.

To find locations near where you live, work, or will be traveling, visit the CU Service Center website to locate a participating branch - www.co-opnetwork.org.

To access your MECU account at CU Service Centers, you will need to show a valid picture ID with signature and your MECU account number. Account access available to MECU members includes deposits and withdrawals from your Share Savings, PAY, Holiday, Checking or Money Market accounts and payments or advances against your loans and lines of credit including PCP and HELOC.

Some policies at the CU Family Service Center may differ from those at MECU. At the present time, MECU is not fully operational in the CU Service Center ATM network. As a result, you may be assessed a surcharge and foreign ATM transaction fee when using CU Service Center ATMs.

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PROTECT YOURSELF FOR THE LONG TERM*

We all face risks associated with long term care needs, and may find ourselves without adequate financial and emotional resources when the need for Long Term Care Insurance (LTC) becomes a reality. Through CUNA Mutual Group and their LTC Specialists, our members now have access to quality long-term care insurance plans that provide:

Asset Protection
You could lose everything due to long-term care costs. Most people would rather have their home, savings and other assets go to their family-not a nursing home.

Access to Quality Care
You get the best access to quality long-term care when you can afford to pay your own way, either through long term care insurance or from your own assets. Relying on Medicaid could limit your choices.

Relieve the Burden on your Family
Your family may not be able to take care of you in your old age. No parent wants to place such an emotional or financial burden on his or her children.

Independence
Most people do not want to be dependent on the government or their family for their care.

Control
Most of us prefer to make our own choices in life. Long-term care insurance gives you the power to maintain control of your own life decisions.

Peace of Mind
If you want to learn more, visit the CUNA Mutual Long Term Care insurance website, www.membersltc.com, and enter 'MECU'.

*The insurance plans offered (1) are not federally insured; (2) are not obligations of the credit union; (3) are not guaranteed by the credit union or any affiliated entity; (4) involve investment risks, including the possible loss of principal; and (5) if applicable, are being offered by an employee who serves both functions of accepting members’ deposits and the selling of non-deposit investment products.

 

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