Campobello residents have learned that Friday, June 26, will be the last day of business at the Charlotte County Credit Union (CCCU) branch on the island. The company is also closing its branch in Blacks Harbour.

Charlotte County Credit Union CEO Gerard Adams says that the decision to close the Campobello branch "had been under discussion for quite a while, and it's based purely on financial reasons. We were not making money. Not not making 'enough' money. We were losing money there."

"The Campobello branch was being utilized primarily as a cheque cashing facility. We didn't take the decision lightly, but it was too much of a challenge for us to keep [both the Campobello and Blacks Harbour] branches open," he points out. "We need to concern ourselves with the two remaining branches. We understand Campobello's geographical isolation but, after eight years, we can't continue [to run a branch]," says Adams.

Soon after the announcement was made concerning the credit union's closure, banking hours were reduced to Mondays, Wednesdays and Fridays from 10 a.m. until noon and 1 to 3 p.m. Friday, April 10, was to be the last day for the ATM and night deposit service on Campobello. Four employees work at that branch.

Branch closure may hurt co-op

Alan Seeley, who recently retired after serving for 15 years on the Campobello Co-op board, says the CCCU pays the co-op "a considerable amount" in rent C $1,750 a month, which is approximately one-third of the co-op's revenue. "That money certainly helps the co-op. We're still paying off our mortgage," he points out. "It would complicate things quite a bit if they leave."

Seeley hopes the Bank of Montreal, which was represented at the April 6 town hall meeting on the island, will want to open a branch on Campobello and move into the credit union's location. "It would make it a lot easier for us to have that space rented."

Community meeting

The March 30 announcement about the closure was a surprise to customers and several hundred of them attended a town hall meeting that was held April 6 at the Campobello Island school for the residents to share their concerns about the closure of the CCCU branch and discuss future banking options for the island.

Gerry Hicks, chairperson of the Campobello Health and Wellness Advisory Committee (CHWAC), acted as spokesperson for the meeting. As soon as they had received the bad news on March 30, Hicks and the other members of the CIHWAC had informed credit union officials Gordon Stubbs and senior manager Kathy Woodside "in no uncertain terms that this was completely unacceptable and that they should feel the glare of shame from [the] entire community. The complete lack of consultation or plans to mitigate the impacts were disappointing as it was clear they had no intention of engaging the community in any way."

"The Campobello Island Health and Wellness Advisory Committee and community will work hard to find alternatives," said Hicks in his letter to the credit union officials. "We made it clear in our conversation today that the Charlotte County Credit Union should not count on any of the residents continuing to do business with them at their St. Stephen branch and it would be arrogant and misguided to assume otherwise."

In a letter to Kathy Woodside, who is based in St. Stephen, Hicks and CIHWAC co-chair Marianne Alexander wrote about their disappointment in the closure announcement. "The committee and community at large have worked very hard over the past year to initiate positive, long-term changes targeted at enhancing overall quality of life, community programs and economic development. Your decision to close this particular branch runs contrary to everything we have been working towards."

"Certainly, we understand that decisions are made in a business forum that are not always popular; however, the impacts to this community reach well beyond being unpopular, they are unnecessary and unjust. The loss of jobs, absence of another financial institution, inconvenience of our transportation and mobility challenges and the everyday frustration of continually being marginalized as a community impacts us more severely," pointed out Hicks and Alexander. "A great extent of the frustration can be attributed to the lack of consultation with the members, residents and businesses of the community you serve with regards to your plans. This credit union was founded by residents who rallied the support of a community that was to be left without a financial institution. It has been owned by its resident members and provided a tremendous service to a community at a crucial time. We deserve better and would ask that you and your management team address the community to provide the rationale for your decision and the courtesy of answering our questions. We are entitled."

Hicks told the town meeting crowd that, since last week, he has discovered that "a lot of people do not care about Campobello." Most of those to whom he spoke said "they sympathize with what we are going through and wish they could help out in some way, but..."

Hicks warned those at the meeting not to let "executives from the CCCU fool you when and if you talk to them, [because] the Campobello branch of the CCCU outperforms the other branches. And don't let them make you think otherwise." He added that Campobello residents were not given any notice about any financial difficulties that the CCCU as a whole was having and, if they had, the Campobello residents would have been there to help out.

Hicks was told by the CCCU that the transition from one branch to another will go smoothly and they will help the residents of Campobello out in the transition. When asked if they will help with the transition from one bank to another, such as switching accounts from the CCCU to Scotiabank, Royal Bank or the Bank of Montreal, the reply from CCCU was "Why would anyone want to do that?" Many have already started looking for new banking services and were surprised that the CCCU thinks their Campobello customers will stay with the branch after the credit union shuts its doors on the island.

Other points brought up by the CCCU in talks to Hicks were that if residents had supported the CCCU and had taken out loans with the credit union, then perhaps there would have been no need to close the branches. This elicited comments from islanders that if the CCCU had approved their business or personal loans, then they would not have gone to other banks for them. All loans applied for at the Campobello CCCU had to be sent to St. Stephen or St. George for approval, and that caused many loans not to be approved, audience members said. Interaction on a local basis would be preferred by the residents.

MP Greg Thompson stated in a letter that he will be helping the islanders with their banking concerns and has assigned an aide to them. Thompson noted that the current banking situation is not acceptable, as the residents of Campobello are the only ones in Canada for whom a passport will be necessary just to do everyday banking.

Tony Huntjens, MLA for Campobello, told the audience that the CCCU is counting on the residents of Campobello to remain passive during the changing of accounts to the St. Stephen branch. This elicited a round of laughter from the audience, to which Huntjens responded "What? You're not?" He stated that he was surprised that the CCCU had plans to immediately remove the ATM from the island and commented that as long as the branch is open on the island, the ATM should remain. It can still be serviced by those who worked at the Campobello branch. An ATM is run electronically and can function on its own.

Huntjens added that the members of the Campobello community need to come together and stand united because they have a better chance to be heard as a group rather than as individuals. Huntjens also added that people on Campobello must also become aware that 95% of banking done today can be done online.

Islander Debbie Mitchell asked, "What are we going to do for a bank? No disrespect to Mr. Huntjens, but not everyone has a computer or access to one, or may not be comfortable doing Internet banking. The banks have to realize that the majority of the people from Campobello are seasonal workers, so are limited in the money they have available to them, and work odd hours."

Kathleen Case pointed out that if she went to a town meeting in St. Stephen and announced that their banks were being closed and they had to travel to Campobello to do their banking "I would not make it out of the meeting alive. The people of St. Stephen would never think of traveling to Campobello to do banking; it would never be an alternative to them. It should not be an alternative for us either. We need a banking facility on the island permanently."

Cathy Kay said that many islanders were denied loans by the CCCU, but those same loans were granted at other banks. "Why? Maybe if the loans were granted the people would do more business with the CCCU."

William Goodhue suggested that the residents of Campobello reach out to other banks and invite them to open a branch on the island. "They would be able to walk right into a banking facility that has an ATM and a vault, with not much of a startup cost, as the facility is there at the Campobello Co-op complex. The CCCU from the start has always been 'do it our way or else,' and it has never been open to suggestions from the Campobello residents on any ideas to do better for our branch. The people of Campobello will embrace any bank that comes to Campobello and opens."

Alan Seeley told the crowd that he'd been talking with Bank of Montreal representatives, and there were two representatives from that bank in attendance who would be willing to talk to residents and give any information wanted about services they offer. "I have talked to Mary Fowler, who owns Harry Martin Insurance in the old Scotiabank building. She has said that there is a place there for an ATM, as well as space for a teller, should a bank wish to run a satellite office a few days a week, and she would be willing to offer the space for that."

Kathleen Case warned her fellow Campobello residents that, if they don't support the services they have here on the island, they will lose as a community. "We may be able to save five or 10 cents by going someplace else to buy items, but spend local to help keep local businesses going," she urged.

Margarite Tinker reported that her family members have applied for loans at the CCCU, only to be denied by the people of St. Stephen and St. George branches who reviewed their application. When they went to another bank, they were instantly approved. "We are fishermen, we pay our bills, [and] our mortgage all on time, yet the CCCU would not help us out. And to force us to go by ferry to do our banking is going back 100 years in history, which is not necessary."

Branch was opened in 2001

Charlotte County Credit Union opened its branch on Campobello on May 2, 2001, after Scotiabank officials decided to close their Campobello branch. At that time, Scotiabank Vice President Barry Monroe said, "There is not enough business. It takes a lot of money to run a branch today. The Campobello branch is one of several small branches that will be closing." Scotiabank had been a presence on the island since 1974.

After Scotiabank made its announcement, it was pointed out that people would not be able to do their banking on their lunch hour if the nearest bank was in St. Stephen. People with eight-to-five jobs would have to take a day off to go to St. Stephen because, if the banks close at 6 p.m., an employed person wouldn't be able to drive from Campobello to St. Stephen in time to do his or her banking.

People were also concerned that a bond would be needed for a person to take more than $10,000 in cash across the border to go to St. Stephen and that traveling to St. Stephen in winter is difficult.

It was also pointed out that transferring mortgages to other banks would involve a penalty fee for the mortgage holder.

At that time, Campobello customers filed a complaint with the Public Affairs Office and their ombudsman. This is not a government agency but a banking organization supported by all banks. That failed, but the full service Charlotte County Credit Union was attracted to the island, moved into the Campobello Co-op complex, and there was no interruption of banking services. Five Scotiabank personnel were hired by the new credit union.