Low salaried and living in the state Capital where the cost of living was very high, state workers could barely manage to make ends meet on a daily basis during the depression.
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| Above: H. Andrew Haneman |
A death in the family, a birth, dentistry that could not be postponed, any unavoidable large expense, was enough to plunge the average state employee deep into debt.
Illegal loan sharks and money lenders charging 42% interest were some of the only choices available to these state workers. Bankers viewed state workers with little or no collateral as a credit risk. As a matter of necessity, PSECU was born.
PSECU founder, H. Andrew Hanemann, aided in the passage of the State Credit Union Act. Mr. Hanemann was also instrumental in the development of the Pennsylvania Credit Union League (the trade organization that represents the political, legal and economic interests of Pennsylvania credit unions).
In May, Governor Gifford Pinchot signed the Pennsylvania Credit Union Act.
PSECU, Room 20, North Office Building. The 22 members who initially pooled their funds for a total of $90 in assets. The members were able to loan each other up to $300 at a low rate of interest. An entrance fee of 25 cents was required, along with the purchase of one share for $5. (Members are still only required to have a minimum balance of $5 in 2003!)
Membership rocketed to 1,704 and loans paid back with interest totaled more than $238,000!
Membership grows to 7,445 with loans amounting to $230,225.
PSECU moved to new and larger quarters in the South Office Building. The value of loans granted this year was $706,445.
State budget crises and and "payless paydays" significantly increases membership and the need for PSECU loans. Staff was increased and new phone and computer systems were purchased. The number of members grew to 23,807.
A rapid increase in member savings allowed PSECU to its expand loan programs. Student loan programs were implemented and mortgage and real estate equity loans were made available to members. Loans to members were $88,939,860.
PSECU's field of membership is expanded. The number of members grew to 101,300.
PSECU moves to it's current location: 1 Credit Union Place in Harrisburg, PA.
PSECU updates Visa® program and introduces the Capitol Card (Visa Credit Card). Additionally, a new phone system, along with a toll-free number, becomes available to members! The number of members are 185,700.
More affordable mortgages for members were introduced that required 5% down. PSECU works together with other credit unions to help members save on ATM surcharges with CU$®. The PSECU Debit/Check Card is introduced and psecu@home® is available through special software OR online! Total members are 253,032 and loans to members are $917,942,155.
PSECU, the state's largest credit union, was named Central Penn Business Journal's 2002 Best of the Web in the "Banking/Finance" category for two consecutive years. The award was presented during the journal's second annual TechFest Awards luncheon.
PSECU, Pennsylvania's largest credit union reaches $2 billion in assets in January, just in time to celebrate 70 years strong and growing! Serving over 281,000 members, with assets of over $2 billion, the products and services have grown to accommodate the needs of its members.