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NOTICE OF ANNUAL SHAREHOLDERS MEETING
CAROLINA FEDERAL CREDIT UNION
PRIVACY NOTICE
MARCH, 2004
Carolina Federal Credit Union (CFCU), your member owned financial institution, is committed to providing you financial products and services to meet your needs and reach your financial goals. We are equally committed to protecting our members’ privacy. You can be confident that your financial privacy is a priority of CFCU. We are required by law to give you this privacy notice to explain how we collect, use and safeguard your personal financial information. If you have any questions, please contact a member service representative at (704) 435-0186 or (800) 378-1955.
Information We Collect And Disclose About You
We collect nonpublic personal information about you from the following sources:
· Information we receive from you on applications and other forms,
· Information about your transactions with others, or us,
· Information we receive from a consumer-reporting agency,
· Information obtained when verifying the information you provide on an application or other forms. This may be obtained from your current or past employers, or from other institutions where you conduct financial transactions.
We may disclose all the information we collect, as described above, to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. To protect our members’ privacy, we only work with companies that agree to maintain strong confidentiality protections and limit the use of information we provide. We do not permit these companies to sell the member information we provide to other third parties.
In order to conduct the business of the credit union, we may also disclose nonpublic personal information about you under other circumstances as permitted or required by law. These disclosures typically include information to process transactions on your behalf, conduct the operations of our credit union, follow your instructions as you authorize, or protect the security of our financial records.
If you terminate your membership with CFCU, we will not share information we have collected about you, except as permitted or required by law.
How We Protect Your Information
We restrict access to nonpublic personal information about you to those employees who have a specific business purpose in utilizing your data. Our employees are trained in the importance of maintaining confidentiality and member privacy. We maintain physical, electronic, and procedural safeguards that comply with federal regulations and leading industry practices to safe guard your nonpublic personal information.
What You Can Do To Help Protect Your Privacy
CFCU is committed to protecting the privacy of its members. Members can help by following these simple guidelines:
· Protect your account numbers, card numbers, PINs (personal identification numbers) and passwords. Never keep your PIN with your debit or credit card, which can provide free access to your accounts if your card is lost or stolen.
· Do not transmit personal information account numbers, etc. via e-mail over the Internet.
· Use caution when disclosing your account numbers, social security numbers, etc. to other persons. If someone calls you, explains the call is on behalf of the credit union and asks for your account number, you should beware. Official credit union staff will have access to your information and will not need to ask for it.
· Keep your information with us current. It is important that we have current information on how to reach you. If we detect potentially fraudulent or unauthorized activity or use of an account, we will attempt to contact you immediately. If your address or phone number changes, please let us know.
If you have questions concerning this notice, please do not hesitate to call us – we are here to serve you.
Liability Notice for Web-Site
Carolina Federal Credit Union is not responsible for unreceived e-mail, applications, communications, connections, etc.
*IMPORTANT NOTICE*
ELIMINATION OF LIFE SAVINGS INSURANCE PROGRAM
Carolina Federal Credit Union (CFCU) has a long-standing tradition of offering members rock bottom rates on loans and high yields on savings. We are also committed to offering the membership quality products and services based upon their usefulness, value, and propriety. However, in order to meet this important commitment, we must continually evaluate the costs of these products and services compared to the benefits each provides.
Consequently, in order to better align our products and services with the ever-changing needs of our membership, the CFCU Board of Directors has accordingly reviewed the Life Savings Insurance Group Policy and decided that it should be canceled.
Life Savings Insurance is a group policy term insurance program which CFCU has provided at no direct cost to members for many years. The credit union pays the premiums for this coverage, which provides maximum benefit of $2,000 on eligible deposits. In today’s economically challenging environment, we must look for programs which offer the greatest benefit for the majority of members in order to remain sound and competitive. Upon a review of this program, it was determined that, as of December 31, 2002, less than 35% of our members would have qualified for the maximum benefit of this program. The benefit in this case obviously does not substantiate the cost. This program has simply outlived its useful life and is too costly for the entire credit union membership to bear.
Therefore, the Life Savings Insurance program will be canceled May 31, 2003 and coverage will cease on June 30, 2003. Please destroy any CUNA Mutual Life Savings Certificates of Insurance in your possession at that time.
Recognizing that some may want to convert their coverage to a member-pay policy, we are making that option available. Because everyone’s insurance needs are different, we’ve asked CUNA Mutual Group to make additional group term and whole life plans available to our members. Call 1-800-356-6006 to discuss your options with one of CUNA Mutual’s knowledgeable, fully licensed service representatives. It’s easy, convenient and confidential. There is no obligation to buy. Your credit union relies on CUNA Mutual, the credit union insurance company, for dependable protection, affordable rates and excellent service.
As always, we appreciate the opportunity to serve you. If you have any questions concerning this cancellation, please give us a call.
Please note that we are discontinuing the Loan Protection Insurance program, which provides up to $10,000 coverage on all eligible loan accounts at no direct cost to members. You can contact the credit union for new coverages we have to subsitute the Loan Protection Insurance program.
The $100,000 federal deposit insurance on each account will continue, as will any other insurance coverage that you have purchased.
CREDIT DISABILITY NOTICE
This notice is to inform you that the rates under MEMBER’S CHOICE™ Disability Insurance coverage on any insured loan(s) will be increased effective November 1, 2005. This rate adjustment is being instituted in order to provide the additional premium required to pay an increasing number of claims. The increase in premium could result in a higher last payment or may extend the duration of the loan. The new Disability Insurance rate per $100 of outstanding loan balance is $.317.
There is no action necessary on your part to continue your coverage if you already have it. It is important that this notice be attached to your certificate. In the event you do not want coverage to continue, please notify the credit union.
a word from
MEMBERS Financial Services…
Based on a recent evaluation, MEMBERS Financial Services have decided not to offer Medicare Supplement Insurance. This service is no longer available, effective immediately.
If you have questions concerning Medicare Supplement Insurance, please feel free to call 1-877-MEMBERS. A representative will be happy to assist you.
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