Consumers Credit Union opening branch in Volo

From the April 29, 2008 Lake County News-Sun

Consumers Credit Union is opening a new branch in Volo, which will be its seventh, at the end of the year, said Sean Rathjen, president of chief executive officer of the 50,300-member credit union.

"It's a growing community there with a lot of houses being built. We have a lot of members living in the western part of Lake County. They wanted our services to be near them," said he.

The 5,000-square-foot full-service facility will be at the intersection of routes 60 and 120.

Rathjen, who was named the head of the credit union four years ago, called 2007 the best year ever with both membership and revenue up for the not-for-profit financial organization.

What made it successful in a year when many financial organizations suffered because of the subprime loan crisis is that Consumers Credit had wisely stayed away from the lending practices associated with subprime loan.

"We're not impacted by it because we refused to get involved in those types of lending," said Rathjen.

Instead, Consumers Credit Union late last year started to offer 7-year balloon mortgage at 5.625 percent with what he called "phenomenal success."

The beauty of the special product is that the mortgage provides 90 percent financing of the value of the property instead of the traditional 80 percent, Rathjen said.

"The rate we offer is below market," he stressed.

Most borrowers pay off their loans in seven years, he said. If not paid off, they would refinance their loans before the end of duration anyway.

Earlier this year, Consumers Credit also offered a line of home equity at 4.99 percent up to $1 million with equal success.

Another "phenomenal success" is the "Rewards Checking" bearing a 5.09 percent interest on a balance of up to $25,000.

"It's the best you can find," said Rathjen.

There are certain conditions attached, though, including that an account holder must sign for receiving electronic instead of paper statements, make 12 debit card transactions and pay one bill electronically.

Meeting the needs of credit card holders tired of paying high interest rates and late fees, Rathjen, ever innovative, launched a Visa balance transfer program. Under the program, Consumers Credit is offering 7.99 percent fixed rate for people transferring their accounts to it.

"Thousands of people have transferred their accounts to us," he said.

Consumers Credit does charge a late fee of $25, but it gives 10-day grace period while many credit card companies start to assess late fees if one is a day late, he said.

Naturally, those who transfer their accounts as others who want to benefit from the offerings of Consumers Credit must become a member. It costs just $10 to join with $5 to open an account and $5 for membership.

For its outstanding services, Consumers Credit has received the Dora Maxell Award for advocating the philosophy of credit union, and also the Louise Herring Award for providing financial education in the Latino community.

"I just love what I do. As non-profit organization, we're not for profit as a non-profit organization, but try to serve people by giving them the best possible financial information and advice," said Rathjen.