August 5, 2009
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News: Wescom Purchases Eight Credit Unions
Investors have noticed that the credit union business is becoming a financially rewarding investment. Credit unions have become more aggressive in marketing their credit cards saying they can be more competitive than the major financial institutions. Consumers enjoy the friendly service and neighborhood atmosphere. Consumers aren't the only ones taking notice, investors are as well. Wescom Credit Union has taken notice of the lucrative credit card business and has expanded its portfolios by purchasing eight credit unions over the past three years. Wescom Credit Union is one of the largest credit unions in the country and offers a full range of financial products including banks accounts, credit cards, financial counseling, online banking, and bill payment services.
The eight credit unions purchased by Wescom added over $65 million in credit card accounts to the credit union's portfolio. The credit union currently maintains 80,609 active card accounts and totals over $248 million in debt balances. Included in the eight credit unions purchased by Wescom are Coastline Federal Credit Union, Bethpage Federal Credit Union, People's Federal Credit Union, Star USA Federal Credit Union and the since liquidated Cal State 9 Credit Union. The credit union hasn't made a purchase since September 2008 and plans on waiting for the current credit card crunch to ease up before considering any further acquisitions. Meanwhile, the credit union is working on assuring that their card payment systems will comply with the new federal laws due to come into effect in February 2010.
Wescom Credit Union, based out of California, was founded in 1934 with just 13 members. Today, Wescom has 42 branches throughout California and has over $3 billion in assets. They are now the financial home of over 300,000 members. In addition to their credit card business, Wescom also offers a Visa Gift Card that can be used anywhere a Visa debit card is accepted.