JUNE 2007 Report Card OCTFCU
Get On The Road to
Auto Loan Reﬁnancing
Save Money With Lower Rates
Is paying a high interest rate on your auto loan from another lender taking a
toll on your budget? Reﬁnancing your loan with your credit union may be the
Is Auto Refinancing Right For You?
If you fall into one of these categories, consider getting an auto loan quote:
Buyer’s remorse—You didn’t shop around for ﬁnancing and got hit with a
high-interest rate. Reﬁnancing may lower your rate and save you money.
COMMON MISCONCEPTION: Improved credit—Your credit score was less than satisfactory when you bought
the car, but has since improved. Reﬁnancing may lower your payments.
Like home mortgage reﬁnancing,
many people think that auto
Budget bind—Due to unforeseen circumstances, your budget is tight right now.
reﬁnancing comes with a number
Reﬁnancing can stretch out the term of loan, and maybe cut the interest rate
of fees and loads of paperwork.
to make the monthly payments more manageable. But be careful in this case.
This belief often keeps borrowers
Even if you’re getting a lower interest rate, your savings will probably be cancelled
from even considering reﬁnancing
out by the increased time you’ll be making payments.
Stretch Your Dollars Further
Auto reﬁnancing with your
credit union is a simple and
With a Lower Auto Loan Rate
Brief application process
No appraisal headaches
(Your car’s value is set by
Kelley Blue Book.)
No application fees
IT’S EASY TO APPLY
To apply for an auto reﬁnancing
loan and ﬁnd out if we can lower
your rate, log in to Online Banking,
call us, or visit a branch today.
Chart is for comparison purposes only.
What’s SPOTLIGHT ON IDENTITY THEFT PAYROLL SAVINGS LOAN LONG TERM CARE INSURANCE
Inside Part 3: Learn what your credit
union is doing to protect you
from identity theft.
OCTFCU offers Members a
lower-cost alternative to
costly payday lenders.
Attend a new credit union
workshop to learn more about
funding long term care.
How Your Credit Union
Protects You About
OCTFCU makes Members’ security and privacy a
top priority, dedicating a signiﬁcant amount of A Message from Rudy Hanley, PRESIDENT/CEO
time and effort to ensure your accounts and
personal information are tightly guarded. There have been many news stories about
Here are some ways we help protect you losses by subprime mortgage lenders and
and your assets: the impact of these losses. Although these
are real concerns for the individuals as
PAPERLESS STATEMENTS—Not only are they well as the mortgage companies, your
eco-friendly and clutter-reducing, they also credit union does not participate in high-
eliminate the opportunity for identity thieves to risk subprime lending and remains
pilfer your statements from the mail. Sign up for ﬁnancially solid.
eStatements at www.octfcu.org >> Online Banking >> eStatements.
A subprime loan is one that is offered at a
ONLINE BANKING—We employ strict ﬁrewalls and protocols to prohibit rate well above prime, usually to individuals
activity that could compromise Member information. Our newest whose credit histories disqualify them from
security feature veriﬁes identities by asking “challenge” questions if obtaining more traditional loans. It’s a risky
high-risk or unusual transactions are detected. situation for both borrower and creditor.
It’s important to have up-to-date anti-virus software installed on your
At OCTFCU, we made a decision long ago
computer before using Online Banking. Without it, hackers may be able
not to participate in the type of subprime
to capture your keystrokes, which could include your Online Banking
lending described in recent media reports.
account number and password.
We view loans as money our Members
FRAUD PREVENTION—OCTFCU checks are printed on special paper borrow from other Members and, as such,
to help detect fraudulent alterations. Only partial card numbers are these funds must be prudently dispersed.
printed on our ATM receipts, and we shred documents containing Whether providing a personal, car or
Member information unless we’re required to keep them for home loan, we consider important factors,
our records. including credit history and one’s ability
to pay back the loan. And above all, we
EDUCATION—Knowledge is power. We continue to post educational do not put Members in jeopardy by
articles on our Web site and in Report Card to keep you informed about providing loans they cannot repay.
fraud prevention. For more information, visit www.octfcu.org >> Tools
>> Educational Articles >> Security. For some of our Members, we have special
loan programs. The First-Time Home Buyer
program assists Members in reaching their
dream of owning a home, and our Home
Loan Payment Relief (HLPR) program offers
Emergency the opportunity to those Members with
limited income to purchase a home at
Debit and Credit Cards PHONE NUMBERS
favorable terms and start building equity.
Make two lists of your credit and ATM/ The Educators Mortgage for school
Debit cards, including the card number, DEBIT MASTERCARD® LOSS employees provides competitive rates
issuer, type of card and customer service
Call OCTFCU: and other beneﬁts.
phone number. Leave one list at home; take
the other list with you and keep it separate Inside the US: 800/4OCTFCU
from your cards, so you have the information Outside the US: 714/258-4000 We may also be of help to Members who
if your cards are lost or stolen. are having problems with loans secured
CREDIT CARD LOSS from other lenders. If you ﬁnd yourself
Contact OCTFCU before traveling out of
state or internationally to ensure that your in this situation, give our mortgage loan
Call Visa’s emergency
OCTFCU Visa credit card and/or Debit consultants10 a call at 800/4OCTFCU,
MasterCard is not ﬂagged by our security ext. 8236.
system for unusual use. Call the credit Inside the US: 800/VISA-911
union or log in to Online Banking and go Outside the US: 410/581-9994
At OCTFCU, we know the importance of
to Preferences >> Card Preferences >>
Travel Notice. feeling secure about your home and your
ﬁnances. In good times and in those that
are more challenging, we are here to help.
Summer Saver Credit Union Membership
Exclusively for School Employees For the Whole Family
Now is a great time to offer credit union Membership
Open your Summer Saver account
to your immediate family members. As a Member, your
today to start saving! It’s easy—
simply select a set amount
($50-$2,000) from your paycheck
spouse, children, siblings, parents, grandparents and
grandchildren are eligible to join.
each month to be deposited into With OCTFCU Membership, they too can take advantage
your OCTFCU Summer Saver account. of countless products and services, the added convenience
of Online Banking, and more.
Available for all school employee Members
Penalty-free withdrawals at any time Our online Membership application is available at
Convenient withdrawal or transfer through Online www.octfcu.org/Membership. A one-time $15 family
Banking, Tellerphone and ATMs Membership fee and a minimum deposit of $5 to a
Works with direct deposit or payroll deduction Share Savings account are required to join.3
As payday lending becomes an increasingly popular option, it’s
important to beware of the dangers that come with the promise of
OCTFCU quick cash.
Offers a Payday loans are extremely expensive cash advances that must
Lower-Cost be repaid in full on the borrower’s next payday. With very high
fees and rates—typically 390%-780%4—and unaffordable
Alternative repayment terms, cash-strapped consumers often become
trapped in a cycle of repeat borrowing.
Our Payroll Savings Loan, offered at 12.9% APR5, provides a lower-cost alternative
to payday lenders, and offers a quick and conﬁdential way for Members to get a
cash advance until their next paycheck deposit.
Funds can be used for just about anything, such as bills or groceries. Plus,
5 percent of each advance is deposited into a dividend-earning Payroll Savings
Share account6 to encourage Members to establish an emergency fund and to
help them avoid a repetitive payday loan-borrowing cycle.
PAYROLL SAVINGS LOAN FEATURES:
No application or funding fees
Draw period of 12 months
Loan amounts up to $500; can be borrowed and repaid on a revolving basis
during the draw period
For more information about OCTFCU products and services, call 800/4OCTFCU or visit www.octfcu.org.
Long term care covers a broad spectrum of services,
from in-home care to full care in an assisted living
facility—and all of it can come with a hefty price tag.
Among people turning 65 today, 69 percent will need
long term care.7 The costs of assisted living continue
to grow in California, at a rate of about 5 percent
per year, according to Long Term Care Insurance
specialists at CUNA Mutual Group. That means
that within 10 years, the cost could be as much as
$120,000 per year for assisted living.
It’s easy to see how one’s savings could be wiped out
by a long term care situation. Which is why adding
Long Term Care Insurance to your retirement portfolio
may be a smart idea.
OCTFCU offers exclusive Member discounts on
Long Term Care Insurance.8 To learn more, attend
our new workshop, “Considering Long Term Care.”
Upcoming Financial Workshops
Experts from CUNA Mutual Group will provide the
RETIREMENT IN YOUR 40s AND 50s9 RETIREMENT INCOME9
latest statistics and updates on long term care,
Tuesday, June 5 5:30–7 p.m. Wednesday, June 20 6:30–8 p.m.
and explain the new Budget Reduction Act and its
OCTFCU Santa Ana Branch Lakeview Senior Center, Irvine11
impact on Medi-Cal beneﬁts.
HOME BUYING ESSENTIALS10 WOMEN AND INVESTING9
Coming CONSIDERING LONG TERM CARE
in July! Wednesday, June 27 6:30–8 p.m. Wednesday, June 27 5:30–7 p.m.
WORKSHOP Rancho Santiago Community OCTFCU Santa Ana Branch
Tuesday, July 17 10–11:30 a.m.
College District Ofﬁce, Santa Ana
OCTFCU Santa Ana Branch
TO REGISTER FOR A COMPLIMENTARY WORKSHOP, VISIT WWW.OCTFCU.ORG >> TOOLS >> FINANCIAL WORKSHOPS.
www.octfcu.org BRANCH HOURS Monday–Thursday: 9 a.m. to 5 p.m. Friday: 9 a.m. to 6 p.m.
TELEPHONE SERVICE CENTER 714/258-4000, 800/4OCTFCU EXPRESS CENTER HOURS Monday–Friday: 10 a.m. to 6 p.m. Saturday: 10 a.m. to 3 p.m.
Monday–Friday: 7 a.m. to 7 p.m.
Saturday: 9 a.m. to 3 p.m. ANAHEIM FOUNTAIN VALLEY LONG BEACH – E, SB REDLANDS
ANAHEIM HILLS – E FULLERTON – E, SB MISSION VIEJO SAN BERNARDINO
TELLERPHONE 714/258-4100, 800/540-4546 CERRITOS GARDEN GROVE NEWPORT-MESA SAN JUAN CAPISTRANO
CORONA – E, SB HUNTINGTON BEACH PLACENTIA SANTA ANA
CSUF – C IRVINE RANCHO CUCAMONGA UCI – C
MAILING ADDRESS CYPRESS LAGUNA HILLS – E, SB RANCHO SANTA MARGARITA WALNUT
P.O. Box 11547, Santa Ana, CA 92711-1547
E – EXPRESS CENTER C – CAMPUS BRANCH, CALL FOR HOURS SB – EXPRESS CENTER LOCATED INSIDE STATER BROS.
For questions and comments about Report Card, e-mail
firstname.lastname@example.org. Visit our Web site for a complete listing of OCTFCU and CO-OP Network ATMs.
1. Rate is current as of 5/24/07, subject to change, is our who pay a Membership fee when joining online. Company, a permanent afﬁliate of CUNA Mutual Group.
lowest available used auto rate for 48 months, reﬂects a 3/4 4. The average loan term is about two weeks. Loans cost on Long Term Care Insurance is not a deposit, is not federally
percent discount for payments made by automatic transfer average 470% APR. The ﬁnance charges range from $15- insured by the NCUSIF, and is not underwritten or
from your OCTFCU Share or Checking account, and does $30 to borrow $100. For two-week loans, these ﬁnance guaranteed by OCTFCU. Subject to eligibility requirements.
not apply to the reﬁnance of existing OCTFCU auto loans. charges result in interest rates from 390 to 780% APR. CA Insurance License 0C97505
OCTFCU’s loan program features a range of interest rates Source: PayDay Loan Consumer Information 9. Representatives are registered, securities are sold, and
for some of our consumer loans. A rate is based on a (www.paydayloaninfo.org), a Web site run by Consumer investment advisory services offered through CUNA
variety of factors, including the applicant’s credit rating Federation of America (accessed 4/23/07). Brokerage Services, Inc. (CBSI), member NASD/SIPC, a
and OCTFCU account history. 5. Rate is current as of 4/23/07, is subject to change, and registered broker/dealer and investment advisor, 2000
2. APY = Annual Percentage Yield. Rate effective as of includes 3/4 percent discount for automatic payment from Heritage Way, Waverly, Iowa 50677, toll-free 866/512-6109.
5/24/07. Variable rate account, subject to change after an OCTFCU Share Savings or Checking account. Members Nondeposit investment and insurance products are not
account is opened. Maximum contribution is $2,000 per must have their paycheck on direct deposit with OCTFCU federally insured, involve investment risk, may lose value
month, $20,000 annually. Deposits must be made through to participate. and are not obligations of or guaranteed by OCTFCU.
NetPay, payroll deduction or direct deposit. Remaining 6. The Payroll Savings Share account will earn dividends at CBSI is under contract with OCTFCU, through the
balance automatically transfers to your share or the Share Savings rate, and is pledged as collateral for the ﬁnancial services program, to make securities available
checking account on 8/31/08. Payroll Savings Loan. If an early withdrawal from the to Members.
3. Must be 18 or older to open an account online; for Payroll Savings Share account is requested before the end 10. Offered through OCTFCU Mortgage Co., LLC, a wholly
eligible family members under the age of 18 print the of the 12-month draw period, the loan must be repaid in owned subsidiary of OCTFCU. Licensed by the Department
Junior Varsity/Varsity application on the Web site, follow full, and borrowing privileges from the Payroll Savings of Corporations under the California Residential Mortgage
the instructions and mail in the application. OCTFCU’s Loan may be suspended. Lending Act.
Family Membership Fee covers the original Member and 7. American Association of Homes and Services for the 11. This event is a private reservation and is not endorsed
their spouse and minor children living in the household. Aging, www.aahsa.org (accessed 5/15/07). or sponsored by the city of Irvine.
The fee will be refunded to spouses of existing Members 8. Insurance sold through CUNA Mutual Life Insurance