History of the Credit Union

We celebrated the independence of our nation earlier this month on July 4. As we finish out the month celebrating “America’s birthday” and the history of the United States, let’s also take a look at the history of the credit union. For over 100 years, credit unions have provided financial services to U.S. citizens. These credit unions are democratically controlled by their members and are used to encourage thrift, offer financial services, and provide credit at competitive rates. Here’s a timeline outlining over a century of credit union history.

Timeline

• 1909: The first credit union is formed by Alphonse Desjardins in New Hampshire.
• With help from Desjardins and Edward Filene, the first U.S. credit union law is passed in Massachusetts: The Massachusetts Credit Union Act of 1909.
• 1921: The Credit Union National Extension Bureau (CUNEB) is founded to expand credit union laws to all states and at the federal level.
• 1934:
• The Federal Credit Union (FCU) Act, modeled after the 1909 act, is signed into law by President Franklin Delano Roosevelt to authorize federally chartered credit unions in all states.
• The Federal Credit Union Division is placed within the Farm Credit Administration.
• 1942: Federal credit union supervision is transferred to the Federal Deposit Insurance Corporation (FDIC).
• 1948: The renamed Bureau of Federal Credit Unions moves to the Federal Security Agency.
• 1951: The Philadelphia Federal Credit Union (PFCU) is founded to serve the financial needs of Philadelphia municipal employees.
• 1953: J. Deane Gannon is appointed director of the Bureau of Federal Credit Unions, which moved to the new Department of Health, Education, and Welfare.
• March 10, 1970:
• NCUA, the National Credit Union Administration, is founded to supervise federal credit unions.
• The National Credit Union Share Insurance Fund (NCUSIF) is formed to insure credit union deposits.
• 1970-1979: Assets in credit unions triple.
• 1977: Credit unions expand their financial services to include mortgage lending and share certificates.
• 1980s: Credit unions can be more flexible in accepting members and can offer increased services to their members.
• 1984: The U.S. Postal Service issues a commemorative stamp honoring the 50th anniversary of the FCU Act.
• 1985: Credit unions insured by the NCUSIF are now backed by the “full faith and credit of the United States Government,” which provides extra security to members.
• Aug. 7, 1998: President Bill Clinton signs the Credit Union Membership Access Act (CUMAA) of 1998 into law to restore membership flexibility to credit unions.
• 2009: The 75th anniversary of the FCU Act.
• July 21, 2010: President Barack Obama signs the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) into law. Section 335 of the Dodd-Frank Act amends the FCU Act to make permanent the standard maximum share insurance amount (SMSIA) of $250,000.

As credit unions continue to grow in the United States, PFCU remains committed to helping ordinary Philadelphians reach their goals to be financially independent. Stop by and check us out!