Credit unions did not open nearly as many new accounts during the month of October as they initially claimed they did.
In early November, the Credit Union National Association announced that 650,000 consumers opened new accounts at credit unions and deposited $4.5 billion during the month of October. The windfall was considered to be a response from customers of large banks hoping to avoid new bank fees by switching to credit unions, MoneyLand.com.com reports.
New data shows that only 214,000 consumers opened accounts with credit unions during this time. Credit unions also lost $400 million on deposits.
While 214,000 new accounts is still more than one-third higher than the average gained by credit unions each month, it is dramatically less than what was reported by CUNA.
The data CUNA used to base its numbers on was based on surveys filled out by its member associations that had confusing questions. This resulted in misinterpreted and incorrect answers, according to MoneyLand.com.
CUNA stated on its website that the confusing questions could have been the reason its member institutions lumped new checking accounts opened by existing customers in with new customers.
The $400 million loss was blamed by a blip of the calendar.
Months that end on a Friday usually have higher performances than months that end on a Monday, which was the case for October, according to MoneyLand.com.