Policies at credit union cause delays

A change in the University of Pennsylvania Student Federal Credit Union's funds-availability policy last month left a biomedical sciences doctoral student and her husband without any change to spare. Marc Turner and his wife Julie have a joint account at UPSFCU. He said last night that in 1991, they opened the account because the organization's fee structure was lower than those advertised by competing city banks. But according to Turner, UPSFCU began holding out-of-state checks for five business days instead of just two on Feb. 22. He said he never received notice that the Credit Union's policy would be altered, and as a result bounced three checks to retailers that should have been covered by a Feb. 23 deposit. In addition, Julie Turner's stipend payments -- which are direct-deposited by the University -- were taking an extra day to clear, her husband said. "That's sort of check-kiting [because] they're getting the interest for the deposit," he added. "The money is in your account but it's not available to you." Credit union officials, however, maintain that the policy adjustment was made to insure UPSFCU's compliance with National Credit Union Association regulations. By law, banks are permitted to hold funds for up to five business days following deposit, although many banks in the area have a two-day turnaround time. Wharton junior Deborah Scharf, UPSFCU chief financial officer, said last night that all customers were made aware of the policy revisions at least 30 days in advance through information mailed with their monthly statements. Signs explaining the new policy were also posted at UPSFCU's office in Houston Hall, she said. "If there are any problems, they're being dealt with by member services representatives," Scharf added. Account executives are telephoning customers involved in cases like the Turners' on a case-by-case basis. But the Turners said the situation has not yet been resolved to their satisfaction. "Out of a $400 deposit, they took $100" in non-sufficient funds fees, Marc Turner said. The couple has written to the National Credit Union Association, which has given UPSFCU until April 21 to respond to their complaint. University President Judith Rodin has also promised to look into the matter, Turner said.