"Not-for-profit, not for charity, but for service," is the motto that gave birth to credit unions more than 85 years ago.
On April 9, 1909, St. Mary’s Cooperative Credit Union became the first credit union in the United States when it opened in Manchester, New Hampshire. Massachusetts Bank Commissioner Pierre Jay and wealthy Boston merchant Edward A. Filene join forces to enact the Massachusetts Credit Union Act, the first general statute for establishing credit unions in the United States.
In 1934 President Franklin Roosevelt signs the Federal Credit Union Act into law. In 1935 the Boston Customs Federal Credit Union receives its charter from the Farm Credit Administration.
Since that day in 1935, the Boston Customs FCU has been serving its members for the sole purpose by the pooling of savings and lending of funds. The credit union is governed by a Volunteer Board of Directors selected by the membership at the Annual Shareholders' Meeting. We have five Board members and three Supervisory Committee members.
In addition to sound management, the Boston Customs Federal Credit Union is federally insured by the National Credit Union Share Insurance Fund (NCUSIF), the federal fund created by Congress in 1970 to insure member's deposits in federally insured credit unions. Administered by the National Credit Union Administration, the NCUSIF is backed by the full faith and credit of the U.S. Government.
How are Credit Unions Different than Banks?
Many people do not understand what a credit union really is, and how it differs from a bank. A Credit Union is different than a Bank in that it is:
- Not for profit
- Owned by its members
- Volunteer Board of Directors
- Supervised by Volunteer Supervisory Committee
- For Profit
- Owned by stockholders
- Compensated Board of Directors
- Compensated Audit Committees
Once you join the credit union, you may remain a member for life, even if you leave your present job, retire, or move out of the area. Remember:
"Once a member, always a member."
Regulation and Supervision
The Boston Customs Federal Credit Union operates under a federal charter, and the books and records are inspected regularly by the NCUA. We are required by law to have regular examinations of our records and operations by an outside auditing firm, with the findings reported to the Board of Directors. NCUA administers the federal insurance fund (NCUSIF), which insures all federal credit unions and most state-chartered credit unions. No taxpayer money is used for regulating and overseeing credit unions, as all activities of NCUA are funded by credit unions.