Maryland's Educational Systems Federal Credit Union of Greenbelt is charging members of the ailing Montgomery County Teachers FCU a one-time $35 fee to help offset the costs of the all-but-complete $800 million merger.
The unusual request to the 57,115 members of the Derwood, Md.-based MCT as explained in media remarks by ESFCU's CEO Chris Conway, in a member letter and on the MCT website zero in on large loan losses borne by MCT and the need to restore the merged credit union's financial health.
The $35 "account conversion fee" would bring in an estimated $2 million, Conway said, maintaining that the cost to MCT would have been much higher at $184 per member had MCT not been consolidated.
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