Credit union fight heats up

They feel like they’re losing their voice.

Because of that say some First Basin Credit Union members, they’re upset about the facility’s proposed conversion to a mutual savings bank.

“We won’t have any kind of say-so,” Carol Uranga, president of LULAC Council 4451, said. “With a credit union, it’s one vote per member.”

Uranga spoke Tuesday morning outside First Basin’s headquarters on West County Road, urging members of the credit union to vote against the conversion.

Ballots have already been sent out. Members have until Feb. 21 to return them. A public vote also will be held at 7 p.m. that day at the MCM Eleganté Hotel.

Letty Moreno, co-founder of an anti-conversion group called Save First Basin, said it wouldn’t be as simple as finding a new credit union for members if the conversion goes through.

“Somebody has to stand up, and somebody has to make these facts available to our members,” she said.

While those against the conversion said the institution could continue to expand, Shem Culpepper, First Basin president and chief executive officer, said after the group’s news conference that once two new buildings are complete in Odessa and Midland, that will be it for growth.

“Under the current provisions, we will be unable to build another branch without exceeding our regulation cap,” he said.

Culpepper also took issue with those who say they are for each member having one vote.

“They believe someone with $100,000 should have no greater say than someone with $25,” he said.

Since May 2007, First Basin sent out several letters to all members detailing the plan. Culpepper said he only received three responses to it until Save First Basin was formed.

Moreno said her group is funded by Members National Trust, an organization opposed to credit unions converting to banks, as well as members of the group.

Members of Save First Basin also argued that converting to a bank would reduce the amount of small loans for items like cars and education.

Moreno said she was also interested in protecting those who may not have good credit or who are building their credit.

“The facts just don’t add up,” she said, adding that more than half of First Basin’s members are Hispanic.

Culpepper disputes claims that customers of a bank would receive worse rates and fees than credit union members would get.

“Anyone can tell that they would just go down the street to the competition (if we had worse rates),” he said.

Culpepper stood behind the literature First Basin’s 18,000 members are receiving as being accurate and pointed out that the literature is approved by federal regulators.

A small group of pro-conversion protesters also gathered with signs. Jesse Huerta, a member whose daughter is a First Basin employee, said a bank would help more people than a credit union can.

Insurance agent Tara Simmons likes being part of a credit union and said she used to recruit new members for First Basin, telling them the virtues of a credit union over a bank.

“Everything they did to encourage new members is the opposite of what they’re doing now,” she said.