Credit Unions Lack Rewards Programs: 5 Things to Know for the Week

Simon Zhen

By , Staff Writer
Posted on Mon Jun 11, 2012, Last Updated on Wed Jul 16, 2014

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Credit Unions Lack Rewards Programs: 5 Things to Know for the Week

Elvert Barnes / Flickr source

Credit unions have been touted as the next-best alternative to traditional banks because of low fees, better interest rates and friendlier customers service. However, they do fall short on one end — programs that rewarded customers and boosted loyalty.

  • The Consumer Financial Protection Bureau aims to do good for consumers but crooks are using the agency’s good name to defraud unsuspecting people. The CFPB is warning against phone calls that claim to send money to recipient, who will pay “taxes” on that money. It is a version of the notorious Nigerian scams, in which victims pay money upfront to receive a fraudulent check.
  • After watching a wild fall in their nest eggs during the Great Recession, Americans are changing how they prepare their retirement savings to maintain financial security after leaving the workforce. Various investment firms are finding that clients are showing greater interest in guaranteed-income benefits when picking out their investments in retirement accounts.
  • Sovereign Bank partnered with LevelUp to offer rewards promotions when customers use their debit cards to make purchases through LevelUp’s mobile application. The collaboration acts as a merchant-funded rewards program that requires the use of mobile phone — Sovereign Bank debit cardholders link their cards to the app and show a code to redeem these offers.
  • A new study found that only half of credit unions offer loyalty or rewards programs attached to their debit and credit cards. The findings call for credit unions to step up their game in this front when banks are showing more initiative in doling out more incentives to foster better relations with their customers.
  • Citigroup, the parent of Citibank, will not be asking to hike its dividend payout when it re-submits capital plans to the Federal Reserve. In March, Citigroup did not meet the minimum requirements set forth by a stress test that evaluated the bank’s ability to weather in a severe economic crash.
 

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