HOUSTON — People's Trust Federal Credit Union has said no more change.
The credit union has implemented a program to go change-free at its newest branch in downtown Houston.
"The design theme of this branch was happy unbank," said Vernon Babilon, executive vice president and chief financial officer at People's Trust. "The branch is not a traditional branch."
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When members walk into a branch they are greeted by a teller and then approach a dialogue station rather than wait in line at the usual teller counter. When they want to cash a check that's not a whole-dollar amount, the member will not get any coins back. They have two choices: deposit the change into an account or make a charitable contribution to the credit union's financial literacy foundation.
"It works out well. The members appreciate the saving opportunity, and they also have the opportunity to make a donation," Babilon said.
Going change-free also helps in safety for tellers and members. Without the need to make change there is no need for a teller drawer. Instead, cash is supplied through a dollar dispenser.
If members request to have change given back to them they are told that there is none available since there are no teller drawers. Rolled coins are available for members who request them though. Babilon said that they have not experienced any problems so far with members wanting their change back.
Cherie Umbel, spokeswoman for the NCUA, said that going change-free is perfectly legal, and there are no regulatory implications.
"Financial institution requirements as far as cashing checks are generally governed by Article 4 of the UCC and Reg CC in terms of funds availability. Account disclosures should inform members of the limits on receiving coins at this branch and what will happen to the cents. The member is receiving full value, credit, for the check," Umbel said.
She added that there are credit unions that have no-cash operations, and while they do take in cash, they do not dispense it. Instead of giving cash, the credit union will cut a check to a member drawn on another financial institution. Umbel said that under the UCC, there are some types of checks that are entitled to immediate credit, but the UCC does not require dispensing cash.
Nicki Amos, senior vice president of marketing and community relations for Founders Federal Credit Union in Lancaster, S.C., said that Founders will be watching how the program plays out.
"We have not considered implementing this program. Of course, we are always looking for services to increase efficiency and convenience in our branches, so I'll be interested in watching their results."
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