Credit union members can be confident—no need to worry about Y2K
November 19, 1999

INDIANAPOLIS — Television and movies depict New Year’s Day 2000 as doomsday, but despite the fear invoked by these entertainment offerings, Indiana’s credit unions are ready for the new millennium.

"Whether it is for savings, loans or other low-cost convenient services, members have relied on their credit unions in the past and they can continue to rely on them in the future," said John McKenzie, president of the Indiana Credit Union League.

"Our Indiana credit unions have done a good job reassuring their members," McKenzie continued. "Most members have already received or read information letting them know their credit union is Y2K-ready and their accounts are as safe as they possibly can be. The confidence level around the state seems to be quite high."

Deposits at credit unions are insured by the National Credit Union Administration (NCUA), a federal agency that insures consumers’ credit union deposits the same way the FDIC insures the deposits held by banks. Within NCUA Region IV—a seven-state area that includes Indiana—all credit unions have earned the highest rating available to measure readiness for Y2K. These credit unions are and have been 100 percent Y2K compliant since September 30. As a sector, financial institutions continue to lead national efforts to prepare for the century date change and are on track to make a successful transition to the Year 2000, according to the President’s Council on Year 2000 Conversion.

Credit unions have always understood consumers’ need for a high confidence level in their financial services provider. And, they deal with power outages all the time. A car accident can knock out a transformer without notice and, in Indiana, we experience our share of storms—especially in the winter. Most credit union members have never experienced any inconvenience as a result of these events.

Credit unions routinely back up the account information contained in their computer files. Even though it is unlikely, if power was lost for a period of time and computer access to account information was impossible, members’ funds would not be lost.

Even though we seem to rely on computers, it hasn’t really been that long since we didn’t. Many of the employees who remember the "good old days" can still put pencil to paper on a member’s behalf. Newer employees have been trained to do the same. And, in many communities, the "members only" nature of credit unions presents opportunities for the office staff to know the accountholders well and watch over their money more carefully.

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