SAN FRANCISCO -- Patelco Credit Union has questioned ShareBuilder Corp.'s statements yesterday that it plans to keep other CU alliances intact.
The credit union received a notice from ShareBuilder that it will not renew its co-branded service partnership.
Scott Waite, senior vice president and chief financial officer at Patelco, provided Credit Union Times with a Dec. 5 letter from Kathy Schanno, ShareBuilder director of marketing, saying that "the change in ownership...has resulted in directional changes in our program" following a November 2007 acquisition by ING DIRECT. ShareBuilder said it will not renew Patelco's co-branded services agreement and asked that its links and banners be removed from the credit union's Web site by Jan. 15, 2010, the end of Patelco's contract.
Schanno told Credit Union Times since the acquisition, ShareBuilder CU clients have dropped from 125 to 50. ShareBuilder is "working through funding and finalizing the future of [co-branded partnerships with CUs], Schanno said, adding she is not sure how many there will be in the future."
Schanno has not yet responded to whether ShareBuilder had sent non-renewal notices to other CUs besides $4 billion Patelco.
Waite said Patelco "has been very pleased with our partnership with ShareBuilder and we are very sorry that it is coming to an end."
"It was a great idea to help our members take advantage of 'affordable' monthly investing in the equity market," he said.