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Consumer News & Views
January, 2009
2009: A Year of Rebuilding Consumer
Confidence and Trust
I am pleased to report on the performance of the American Consumer
Council (ACC) during the past year and offer our 2009 Consumer Outlook.
2008 was a year of ironies. ACC witnessed unparalleled membership growth
as our membership surged to more than 85,800 members. We added more than
7,800 new members in 2008 with a membership retention level of 93
percent. ACC now has members in 34 states as well as Puerto Rico, Guam,
and the U.S. Virgin Islands.
This was accomplished in large part due to our sponsoring membership
program with credit unions. While ACC enjoyed a year of growth, many of
our members suffered through the worst economic downturns in 75 years as
a result of the drastic declines on Wall Street, declining home values,
and job losses.
In 2009, consumers will accept lower dividends on their investments in
exchange for financial safety and security. ACC projects a membership
growth of 6-8% as consumers continue to get involved and exercise their
views. This translates to a modest membership growth of 2-3% in 2009 for
those credit unions that are part of our sponsoring member program and
positioned as consumer-friendly. Again, this branding identity will
attract consumers who are searching for safe, reliable investments.
Unfortunately, the economic damage has already been done with the
collapse of several major financial institutions and the dramatic
increase in home foreclosures and job losses. 2009 will be a difficult
year as companies and consumers continue to cut spending and await the
results of federal stimulus programs from the new Obama Administration.
By September 2009, we anticipate these economic stimulus measures will
begin to show some results and the economy will slowly improve. By
mid-2010, we forecast the start of a positive growth cycle and a slight
up-tick in home purchases and consumer spending. Everything depends on
the new administration’s ability to shore-up home refinancing programs
for desperate consumers who can barely make mortgage payments. Also,
President Obama and the Congress will have to introduce some type of
consumer credit assistance given the number of consumers who have
suffered damage to their credit scores. Given the economic uncertainty,
much of 2009 will be a “wait-and-see” game on the part of consumers.
Looking back on our 2008 successes, ACC introduced its
Green C Certification Program which
promotes environmental compliance and Corporate Social Responsibility.
Through the Green C Certification
Program, ACC is helping companies and organizations objectively assess
their environmental standards, demonstrate their Corporate Social
Responsibility practices, and get recognized for improvements in these
areas. Going Green will continue to be a high priority of companies
especially given the Obama Administration’s pledge to speed-up
environmental protection laws and policies.
In 2009 ACC will add several credit unions to our growing network of
sponsoring members as we target Virginia, the Carolinas, Texas,
Kentucky, and New England. We are also working with credit unions to
manage and administer their travel clubs and affiliate groups to help
credit unions comply with NCUA guidelines and new IRS requirements for
non-profit organizations.
Finally, I am pleased to report that during 2008, ACC showed steady
financial growth. I am grateful to our Board members and professional
staff for their service, dedication, and commitment to achieving ACC’s
goals during this challenging year for consumers.
Thomas D. Hinton
President & CEO
American Consumer Council
tom@americanconsumercouncil.org
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