UA student money secure after credit union merger

The recent merger of Saguaro Credit Union and DM Federal Credit Union should not affect University of Arizona bank members, although it could alter future policies of the CatCard system.

Richard Roberts, the UA's chief budget officer, said he does not anticipate drastic changes for Saguaro customers.

"As far as I know all working relationships that we have with Saguaro will be honored with DM," Roberts said.

The July 1 merger more than doubles the size of the old Saguaro Credit Union, established in 1954 with the primary intent of serving UA students, staff and faculty. The credit union will now have more than $500 million in assets and 80,000 members.

The company increased to 11 branches and 15 automatic teller machines in Tucson.

Officials from both credit unions have not released details regarding any new policies. A transition team consisting of employees from each company has been formed to determine what changes are necessary.

"We'll be evaluating the best of both worlds and deciding what works best," said Suellyn Hull, Saguaro's vice president of operations. "I'm sure there will be changes but all of the members will be notified ahead of time."

Roberts said the issue of printing logos on the CatCard is something the university should take a closer look at because of possible disturbances like the Saguaro-DM merger.

"It brings up the question of whether you should put any logos on the card at all," he said.

CatCard Director Elizabeth Taylor confirmed yesterday that using logos in the future will be an item up for discussion.

"I think we're going to take a look at it," Taylor said.

It has not been determined how the merger will affect the CatCard, which has Saguaro's logo printed on it. Roberts said one possibility is beginning a "phase-out cycle," which would stop the logo from appearing on future cards.

It is doubtful that the UA would require all students and faculty to obtain a new identification card, he said.

"I don't think we're going to issue new ones," Roberts said.

The June 14 announcement of the merger came six months after the National Credit Union Administration took over the daily operations for Saguaro.

In December, the credit agency put Saguaro in conservatorship - a period when the NCUA assumes the daily and investment responsibilities of a credit union - for not wisely investing its money.

Richard Houseworth, the superintendent of banks at the Arizona State Banking Department, said in January that the credit union's investments were "not worth what they were carrying them on the books at."

Hull and Julie Fair, Saguaro's UA branch manager, did not want to elaborate about the nature of the questionable investments. Hull assured the credit union's UA customers that their service would benefit from the merger.

"I do expect it to be a positive thing for students, faculty and staff," said Hull, referring to the increased number of ATM's around the university.

To avoid potential computer problems, Hull said the computer systems will not be combined until Jan. 1.