HIGHLANDS RANCH, Colo. -- Calling its action a bold step to demonstrate commitment to members amid the current economic downturn, the $150 million Red Rocks Credit Union has lowered rates on its $13 million portfolio of variable-rate loans to reduce the financial burden on members.
The suburban Denver CU declined to divulge the cost of the action but said it covers more than 600 loans and was made effective July 1, with members receiving notices of rate reductions in letters sent to homes and businesses.
"We wanted to let our members know first before telling the media of our decision, which is designed to show that, in this uncertain economy with all of the existing consumer unrest, we are going the extra mile," said Don Arkell, vice president of sales and marketing.
In a press release, Pat Ahern, president/CEO, said, "Our members are bombarded every day with messages of uncertain market conditions, a rapidly changing rate environment, high energy prices, decreased home values and failing financial institutions. In all that, Red Rocks Credit Union remains strong."
The decision, he added, "was not made lightly, but under the current economic conditions, we felt it was necessary," noting that by "strengthening the financial situation of our individual members, we all benefit."
As a nonprofit, continued the statement, "Red Rocks' move to lower rates on existing loans is just one example of how the credit union keeps the members best interests at heart. "Doing the right thing by our current membership goes back to the core foundation of Red Rocks Credit Union--integrity, accountability, excellence,"