Credit Union History

Credit Union Beginnings

Credit Unions were born of hard times. About the middle of the last century, the industrial revolution brought with it severe social and economic dislocations including a financial system designed to respond to the demands of industrialization rather than the needs of people of small means.

As a result, credit unions came into being for a very simple reason: the ordinary individual had almost no chance of securing a loan for any purpose, except at prohibitive rates which tended to worsen rather than alleviate the plight of the borrower.

Recognizing that the existing financial system would be of no help in breaking that cycle, the credit union pioneers concluded that the people would have to help themselves. Here, then, was one of the first guiding principles of the credit union movement, the principle of self-help. Its outcome was the principle of mutual aid, people pooling their resources to help one another.
The idea of the credit union had been born.

Credit Union
Common Bond

Only your credit union, in all the financial world, is organized around the common bond principle which holds that members must share a bond of employment, association or community with others.
Originally, this requirement was intended to identify groups of people who lived or worked close to one another and therefore could conveniently form a cooperative, nonprofit, member-owned financial institution.
The common bond not only makes the credit union movement unique, it also had deeper implications in the lives of credit union members. Your credit union common bond is not just a principle; your common bond expresses a feeling of community of interest, a bond which unites members through trust.

Credit Union Volunteers

Without the dedication of countless volunteers, the pioneers of the credit union movement would not have won the battle to create financial needs of people of modest means.

When the movement began, very little money was available to pay employees...so the elected officials served as volunteers and enthusiastic members joined in spreading the revolutionary idea of people helping people by pooling their resources to back one another financially. The credit union movement was on its way.

Credit Union Philosophy

Credit Unions are people oriented financial institutions. They are nonprofit cooperatives, formed, owned and operated for a single purpose: to help members help one another financially.

The first credit union in the United States was established more than 90 years ago. From that day to this, credit union philosophy has never varied from the basic principles of self-help and mutual aid.

To accomplish its purpose your credit union operates on the basis of these objectives:

*Encourage thrift among the members, thus creating a pool of lendable funds.

*Make member loans at reasonable rates of interest.

*Pay a fair rate of return on member savings and

*Provide helpful member financial services.

The credit union exists not for profit, not for charity, but to serve the economic well being of its members.

Credit Union Ownership

The members own the credit union. People join the credit union by establishing share account for their savings. Your share account is your share of the credit union.

Annually, the credit union membership elects individuals from its own ranks who have agreed to serve designated terms as members of the Board of Directors. It is these fellow members of your credit union who exercise general control of the credit union’s activities for the benefit of the entire membership.

This unique method of electing members of the credit union to serve on its Board of Directors ensures that there is as cross-section of the views and financial aspirations of the vast majority of the members. As a result, Board decisions generally reflect quite closely the interests of the membership as a whole. Like all other volunteers, the members of the Board of directors receive no compensation for their services.

Edco’s Beginnings

The Edco Federal Credit Union was organized in 1937 when a group of employees from the Ohio Edison Company were granted a charter by the National Credit Union Administration. We must operate under the charter and under the supervision of the NCUA. We are audited by this group once a year and a report given to the Board of Directors.

For the first forty-eight years, the credit union was located in the home of the Treasurer. In 1985 Edco Federal Credit Union was moved into an office located at the Ohio Edison Edgewater Power plant in Lorain. In December 1990, Edco built an office in the current location. In September, 2005 our membership expanded into a community charter. Anyone that lives, works, worships or attends school in Lorain County can now become a member of our credit union.