44th Annual Meeting Questions, April 11, 2007

The following questions were deposited at our branches before the Annual Meeting.

Q1: Please improve the visual quality of your check paying system. Often, checks are unreadable off your website.

A1: We will work with our image provider to enhance the image of the checks. There is also a zoom feature on the site that can make the check easier to read online.

Q2: Why is CUNA allowed to continually make late payments on my loan that affect my credit score?

A2: When a member qualifies for CUNA Disability Insurance Coverage, CUNA strives to be timely with the loan payments, but external factors can influence the approval of these payments. If a member cannot provide the proper paperwork or the physician does not complete the required documentation, payments could be delayed until all paperwork complies with CUNA’s requirements. When a disability payment is approved, the Lending Department effective dates the disability loan payment(s) thus preventing late fees, additional accrued interest and negative credit bureau reporting.

Q3: Extra dividends why not give it to your employees as a salary raise. I don’t want it.

A3: To treat all members fairly, everyone who qualified for the special dividend received a distribution. All eligible employees were in fact included in the distribution.

Q4: Why did you waste money sending out postcards telling me I’m getting a special dividend?

A4: Since this was HVFCU’s first special dividend distribution in 30 years, we wanted to alert members about it before March statements were received. This postcard was sent to alleviate any confusion when reconciling accounts and to explain the purpose of this extraordinary one time payment.

Q5: While the Credit Union will withhold federal taxes for the Required Minimum Distribution from an IRA it will not withhold NYS taxes. Why not?

A5: The credit union is not required to withhold NYS taxes. We will work with our system software provider to consider this enhancement.

Q6: I am 3. My family members have saving accounts here. My mom wants to start an account for me. I want to do banking with you, but you don’t have lollipops here. Rhinebeck Savings does. What should I do?

A6: Because some children are sensitive to sugar, artificial colors and dyes, HVFCU does not routinely give out lollipops or other candy. Sometimes, branches may have some candy available if a parent asks on behalf of their child.

Q7: When will HVFCU open a branch in Rhinebeck or Kingston?

Q8: When will you build a branch in Northern Dutchess (Rhinebeck/ Red Hook or Ulster Kingston/Hurley) areas?

Q9: Can you put more branches in Highland or Newburgh or New Paltz?

A7-9: The credit union is actively reviewing possible branch and ATM locations throughout Dutchess, Ulster, and Orange Counties, including Rhinebeck and other areas. Factors considered in our review are member concentration, available branch ATM locations, cost of location, and probable member usage. Members will be notified as soon as new locations are selected. HVFCU has purchased property on Route 9W in Lake Katrine and expects to open a branch there to serve our Kingston and Ulster County members.

Q10: Why can’t there be another branch in Newburgh?

A10: In addition to expanding our Newburgh branch, we are also working on a site in New Windsor on Route 32, near Vails Gate.

Q11: Why hasn’t anyone addressed the inefficient way the Newburgh branch is run, especially on Fridays and Saturdays? The lines and wait time are totally unacceptable.

A11: We realize the Newburgh branch is very congested particularly on Fridays and Saturdays. We’ve purchased property in Newburgh near the current branch and have been working with the town to get the proper approvals. Now that all approvals have been received from the proper authorities, we expect to begin construction in late Spring 2007.

Q12: In order to help detect fraud earlier, would you consider offering CU Alert notifications for all account activity (including ATM withdrawals), not just the eight categories that you offer today?

A12: Thank you for your suggestion. We are currently reviewing our CU Alert notifications for future enhancements and will take your suggestion into consideration.

Q13: With concerns of identity theft, why must the credit cards bills come printed with the entire credit card number on it? (I belong to another credit union as well and their bills arrive with just the last four digits of the card number.) Thank you!

A13: We will work with our statement provider to implement this change.

Q14: Why can’t I make “principal only” payments to my mortgage online?

A14: Members are able to apply additional “principal only payments” online to their mortgage. (Note: This member was contacted personally to discuss the online process via Internet Banking.) The process is as follows:

  • Sign on to Internet Banking
  • Select the Transfer feature
  • Select Immediate Transfer
  • Select the Transfer From Account from the drop down menu
  • Select the Transfer To Account from the drop down menu
  • Enter the Specific Amount to Transfer
  • Select Next
  • The Transfer Payment Option Screen will appear next
  • Select Principal Only Payment
  • Select Next to continue with the transfer

Members needing additional assistance are encouraged to call the Information Center at 800-468-3011.

Q15: When I make principal payments on my mortgage, I get charged for the whole 30 days interest, even though my loan is simple interest.

A15: All of our mortgages, except our Home Equity Line of Credit, are amortized. They are not simple interest loans. This means that every monthly payment is charged 30 days of interest, regardless of the actual number of days between monthly payments. An extra principal only payment would reduce the loan’s principal balance; nothing is charged to interest. Therefore, on the next regularly scheduled monthly payment, 30 days of interest is calculated on the now lower principal balance.

Q16: The new sign in process is overdone. I do not want to have to remember more stuff. The sign in process is too involved and there is too much to do and remember besides all other things on Internet.

Q17: Is there an easier on line system that can be utilized?

A16-17: In order to provide a more secure online banking experience and in response to regulatory requirements we have changed our sign-on process for Internet Banking. Although the one-time registration process does require a member to initially answer five security questions, these questions may be bypassed in future sessions by registering your computer. Once your computer is registered the new Internet Banking sign-on process is only one extra step compared to the old process.

Q18: Why did you put that machine in the way of the signature pad middle of counter?

A18: The signature pads that you sign to authorize your transactions were placed on stands to make it easier for you and other members to view the information that is displayed on the signature pads. We understand this has reduced the space you have. We will work to make improvements to provide you with more room for conducting your teller transactions.

Q19: I would like to strongly request a Visa Check Card for my Business Account.

A19: At this time, liability issues prevent us from issuing a debit card to anyone other than sole proprietors. Business Services will be looking to possibly add Visa Check Cards for Business Accounts by year-end.

Q20: I have a business checking account. Why can’t I designate another account to be used to withdraw money from if I overdraw the checking?

A20: In addition to the business line of credit that we offer as overdraft protection for a business checking account, we will create the option to offer overdraft protection from another account (in the name of the business) in 2007.

Q21: Why are your %(s) so low on Money Markets compared to others?

A21: We compare our deposit rates weekly to local competition. HVFCU provides some of the best rates in the local market. However, we will continue to review the money market program for improvement opportunities.

Q22: Can you recommend a Credit Union or affiliation in the Houston, Texas area?

A22: A complete list of credit unions is available by clicking on the CUNA website: www.cuna.org and entering the city and state you desire. If you would prefer, you can reach them by phone at 800-356-9655.

Q23: I hope “over-draft” protection can work with my money market account.

A23: Overdraft protection is not available on money market accounts. Money market accounts are accounts that offer you a higher rate of return than a savings or checking account and are not considered transaction accounts. By regulation, these accounts are limited to a maximum number of six withdrawals a month. It is for these reasons that overdraft protection is not available. If you need to access the funds in your money market account, we recommend that you make one transfer to your checking account and then write checks from that account. Overdraft protection is available for a checking account.

Q24: There is no water fountain in the IBM Road Building?

A24: We have no plans to install a water fountain in the Poughkeepsie Branch (IBM Road building). We will provide water if a member requests it.

    © 2014 Hudson Valley Federal Credit Union

    159 Barnegat Rd. Poughkeepsie, NY 12601
    ph: 845.463.3011 / 800.468.3011

    Routing Number : 221979363