Credit Union Journal articles from August 2008

Credit Union Journal archives from August 2008

Is It Time To Expand?: Why CUs Should Be Branching Out In Times Of Trouble.
August 4, 2008... CINCINNATI -- With the bursting housing bubble and the IndyMac debacle as a backdrop, investing in branch expansion may appear to be a shaky proposition. But several analysts say those factors could actually open a window of opportunity for...

Congress Eyes Card Reforms: Double Cycle Billing, Universal Default Among Practices Targeted By The Bill.
August 4, 2008... WASHINGTON -- Efforts to ban a variety of credit card practices, most of which target low-income cardholders, moved forward in Congress last week, but are not expected to be passed this yearleaving the issue for the next Congress to decide. ...

CUs Are Turning To Technology To Help Cope With High Price Of Gas.
August 4, 2008... BRIDGEWATER, N.J. -- The rise of gasoline prices is inspiring many credit unions to explore new technology opportunities as a way to provide more at-home banking services for its members that may want to avoid driving to a branch. ...

Fifth Third Bank Seeks Reversal In PSECU Lawsuit.
August 4, 2008... PHILADELPHIA -- With tens of millions of dollars of liability at stake, Fifth Third Bank has asked a U.S. Appeals Court here to review a recent ruling by a three-member panel of the court that would enable Pennsylvania State Employees CU and...

On Deadline.
August 4, 2008... Employee Charged With Stealing More Than $200K SHREVEPORT, La.An employee of WESLA FCU was arrested on charges she manipulated customer accounts to steal more than $200,000 she used to pay personal bills and buy lottery tickets. Elaine...

Other States Eyeing Penn.'s Move To E-Titles.
August 4, 2008... HARRISBURG, Penn. -- With Pennsylvania the first state to mandate paperless vehicle titles for lien holders, one CU that shifted to the e-process 10 years ago wonders why some CUs waited until this years July 10 deadline to make the move,...

CU Alternatives To Payday Loan Programs Could Benefit From New State Law In Penn.
August 4, 2008... HARRISBURG, Penn. -- Credit unions in Pennsylvania offering alternatives to payday lending could see a spike in business following the Department of Bankings decision to crack down on out-of-state lenders. Pennsylvania Secretary of Banking...

Worth Noting.
August 4, 2008... St. Marys Lowers Rates For Loan MANCHESTER, N.H.Residents and businesses in Rimmon Heights are being given extra incentive to revitalize the west side of the city by the nations oldest credit union. St. Marys Bank is changing the...

Economy Grows 1.9% In 2nd Quarter, Prelim Report Says.(Brief article)
August 4, 2008... PLANO, Texas -- The economy grew at a 1.9% pace during the second quarter, according to Southwest Corporates Brian Turner, who noted the growth was tempered by the continued housing slowdown and higher energy costs but buoyed by tax rebates....

cujournal.com SURVEY.(Survey)(Brief article)
August 4, 2008... The failure of IndyMac Bank and consumers concerned about their institution has: Not had much effect upon our membership 15% Has led to phone calls, queries about health 55% Led us to directly respond with communications...

How Knowing Its Niche Has Kept 1 CU Atop Rankings For More Than A Decade.
August 4, 2008... GREEN BAY, Wis. -- For more than 10 years, P.C.M. Employees Credit Union has kept a stranglehold on the top spot of the Return of the Member rankings, securing that position every year since 1997. Were very proud of that, president Dan...

Thought For Fuel: How CUs Are Reacting To Higher Gas Prices.
August 4, 2008... Altier Gives Away Gas For A Year TEMPE, Ariz.Credit unions across the country are offering members and employees alike some relief at the gas pump. Altier CU is giving its existing and new members a chance to win Gas for a Year. The...

Now In The Market.
August 4, 2008... TNB Reports GECU Scores Big DALLASTNB Card Services reported client credit union GECU scored big in the MasterCard Priceless Partnership Promotion, bringing in nearly 4,300 new debit card accounts and more than 475 credit card accounts for...

Just When You Think Some Folks Can't Top Themselves, They Do.
August 4, 2008... I take it all back. Its officially retracted. Like the White House when forced to release documents, Im redacting it; any future reproductions of that previous column are to be published only with all the text marked over in heavy, black...

CALENDAR.(Calendar)
August 4, 2008... AUGUST Aug. 3-6 CUNA Economics & Investments Conference, Hilton Suites-Chicago Magnificent Mile. For info: 800-356-9655, ext. 4249, www.training.cuna.org. Aug. 3-6 Credit Union Internal Auditors Association Annual Auditors &...

Why Troubled Economy Signals Time Is Ripe For CU Expansion.(Company overview)
August 4, 2008... Credit unions were founded for times like todays economic challenges. The main reason that we are in such a credit downturn today is that too many financial institutions turned to transactions in lieu of relationship building. The fact...

Letter On Mica's Salary Is Why CEO Pay Should Be Private.
August 4, 2008... Regarding Stuart Perlitshs letter to the editor on July 7 about Dan Micas salary: if the NCUA board wants to know why they shouldnt order credit unions to publish CEO salaries, here is the reason. While Stuart is understandably concerned about...

Now In The Market.
August 4, 2008... CO-OP Adds 111 New CUs RANCHO CUCAMONGA, Calif. CO-OP Network is reporting that through the first six months of 2008 it has added 111 new credit unions across 32 states and D.C., including two billion-dollar CUs, Chartway FCU and GECU of...

Why CUs Must Act Fast To Make Most Of Cost-Cutting Opportunity.
August 4, 2008... As the volume of deposited and cashed checks converting to electronic form overtakes traditional paper clearing and settlement channels, credit unions late in adopting branch image capture are seeing courier costs skyrocket. How does a CU...

Now In The Market.
August 4, 2008... Star One Offers CO-OP My Deposit RANCHO CUCAMONGA, Calif.The $3.7-billion Star One Credit Union has begun offering CO-OP Financial Services CO-OP My Deposit product for use at home. Star One is utilizing CO-OPs check imaging-enabled...

City Back-Burners Proposed Tax On CUs.
August 4, 2008... PARKERSBURG, W.Va. -- For now, the threat of credit union taxation in this state has been checked, according to the West Virginia Credit Union League, which recently responded to the city of Charlestons proposal to place a business and...

Profits Take A Dive At Student Loan Giant Sallie Mae.(Financial report)
August 4, 2008... RESTON, Va. -- Student loan giant Sallie Mae reported its second-quarter profit plummeted 72% as funding costs remained high amid further weakening in the credit markets and the company took charges related to its restructuring. Net income...

SECU's $1.1B Investment Could Be Student Loan Model For Other CUs.
August 4, 2008... RALEIGH, N.C. -- One credit union that has come to the rescue of a state student lending program has found a way to make up for other lenders decisions to pull out of student lending in a significant waybut it wont be making a single loan...

CUNA Mutual, 40 CUs In Pilot Student Loan Program.
August 4, 2008... HOLLYWOOD, Fla. -- CUNA Mutual CEO Jeff Post is among those who believe student lending holds great promise for credit unions. The most intriguing thing to me is student loans and the ability to bring in tons of new members, he said. ...

CUs Are Stepping Into Arena As Other Financial Institutions Are Bailing Out.
August 4, 2008... WASHINGTON -- Even as other financial institutions are running away from student lending, credit unions are finding ways to dive right in, with several alternatives to creating a student loan program from scratch all cropping up. Case in...

There's HELP Available For Your Students.
August 4, 2008... CARLISLE, Penn. -- CUs that want the benefits of offering student loans without the potential downside of creating their own program have a variety of alternatives available to them. Lehman Brothers-owned Campus Door, here, teamed up with...

NCUA Costs Grow to Resolve Biggest CU Failure ever.
August 4, 2008... ALEXANDRIA, Va. -- NCUA said last week it paid $107.4 million to Patelco CU to induce the San Francisco credit union giant to acquire the remnants of Cal State 9 CU, the biggest credit union failure ever. Cal State 9, which had more than...

Congress Passes Housing Bailout, Bush Signs Law.
August 4, 2008... WASHINGTON -- In a rare Saturday session, the Senate approved the massive housing rescue package, which includes provisions to bail out both troubled homeowners and secondary mortgage market giants Fannie Mae and Freddie Mac. The bill was...

NCUA Shutters $12.7M New London Security FCU.
August 4, 2008... NEW LONDON, Conn. -- NCUA closed and liquidated New London Security FCU, a $12.7-million credit union that holds almost no loans. The credit union, chartered in 1936, had a $5,000 mid-year loss and just $234,000 worth of loans. At the same...

AGENDA.
August 4, 2008... Events Federal Reserve Bank of Chicago & NCUA Vice Chairman Rodney Hood are hosting the 2008 Risk Mitigation Summit in Chicago on Aug. 7. U.S. Senate is in recess Aug. 9 to Sept. 7 for its Summer State Work Period. U.S. House of...

People.
August 4, 2008... St. Marys Bank, Manchester, N.H., elected Ovide M. Lamontagne to chairman and Daniel J. Healy to vice chairman. Landmark Credit Union, New Berlin, Wis., named Jim Newman vice president-accounting. GTE FCU, Tampa, Fla., promoted Brad...

FDIC Sells Two Failed Banks.
August 4, 2008... SCOTTSDALE, Ariz. -- Federal banking regulators have shuttered two banks owned by First National Bank Holding Company and sold them to Mutual of Omaha, the Nebraska insurance giant that operates a banking subsidiary. The two banks, 1st...

ME CUs Promote Shared Branching.
August 4, 2008... PORTLAND, Maine -- A radio ad campaign launched by Maines credit unions promotes the benefits of shared branching during the summer travel months. The new commercial, called Packing Up, celebrates the benefits of traveling while not having...

NCU Offers Storm Relief Loans.
August 4, 2008... PORTSMOUTH, N.H. -- Northeast CU announced special loans to help all homeowners and renters in the community affected by July 24 storms to recover from physical losses to their homes and apartments. For homeowners, the Homeowner Relief Loan...

How To Survive Double-Edged Sword Of Self-Service Tech.
August 4, 2008... NORTHFIELD, Ill. -- The race to implement solutions that provide members the convenience of at-home banking may be a double-edged sword, as that same technology pushes members away from the branch and potential cross-selling opportunities. ...

'Greenification' Of CU Branches Is Starting To Take Root.
August 4, 2008... SAN DIEGO -- Its widely recognized more credit union facilities are striving to be green. Whats less recognized is whats involved in obtaining the designation, particularly in new facilities. Being certified as environmentally friendly, or...

How CUs Can Cut Waste, Improve Member Relations & Even Save The Earth.
August 4, 2008... ATLANTA -- Credit unions seeking to increase branch traffic need to realize technology is not just changing the branch, but the type of traffic it is getting. As automation has tried to take care of a lot of these very mundane...

Webcams, Software Improve Communication During Design And Construction.
August 4, 2008... ATLANTA -- Architectural and project management technology is changing the way new credit union facilities are being designed and built, and those changes could make significant contributions to the bottom line. The reason: credit unions...

Before You Build: Location, Demographics, Costs.
August 4, 2008... CINCINNATI -- With location critical to the success of a new branch, more design/build firms are customizing geographic interface system (GIS) engines to identify ideal sites. Were trying to make it as much science as it has been, in the...

CUJ Q&A: Ensuring Safety At MATCU Is A Piece Of Cake For Senior Security Officer Garces After Two Tours Of Duty In Iraq.
August 4, 2008... MEMPHIS -- Employees and members of Memphis Area Teachers CU can breathe a little easier knowing that the CUs Senior Security Officer Steve Garces is back on duty at the credit unioninstead of Iraq. Garces, who is a master sergeant in the...

How ATMs Can Be Engineered To Provide An 'Unexpected Delight'.
August 4, 2008... SAN DIEGO -- The ATM as a consumer destination? Yes, says one analyst, who adds the ATM channel should also be maximized to generate more revenue. Wade Edwards, vice president of EFT product management for Fifth Third Processing Solutions,...

Measuring The Value Given Back To Members.
August 4, 2008... WASHINGTON -- Determining how a credit union stands relative to its peers in terms of returning value to its members is a complex issue. Callahan & Associates, Washington, has attempted to do just that with its Return of the Member (ROM)...

Councils Examine Branching, Corporate Universities.
August 4, 2008... MADISON, Wis. -- The CUNA Councils have released new white papers on evaluating the effectiveness of credit union branches and the viability of corporate universities. Sponsored by the CUNA CFO Council, Comments on Evaluating the Effectiveness...

RMJ Foundation Celebrates Its 50th Anniversary.(Richard Myles Johnson Foundation)(Brief article)
August 4, 2008... RANCHO CUCAMONGA, Calif. -- The Richard Myles Johnson Foundation is celebrating 50 years of supporting financial education. Founded in August 1958 as the California Filene Educational Foundation by 30 California credit union pioneers,...

NACUSAC Pays Tribute To Willhoite, Curchin Group.
August 4, 2008... DENVER -- During its Annual Conference here, the National Association of CU Supervisory Auditing Committees recognized one individual and one organization for their accomplishments: * Eleanor Willhoite, vice chairman of the supervisory...

ACUS Sign With Antigua & Barbuda.
August 4, 2008... PHOENIX -- The Arizona CU System (ACUS) has signed a partnership agreement with the Antigua & Barbuda Cooperative Credit Union League to help the Caribbean island nation better serve its affiliated credit unions. The partnership agreement was...

Guardian Angel CU Files Suit Against MetaBank.(rdian Angel Credit Union)(Brief article)
August 4, 2008... BERLIN, N.H. -- Guardian Angel Credit Union here has filed suit against MetaBank claiming a $99,000 CD it purchased from the bank in 2005 was phony. The action follows similar suits by two Texas banks alleging the same thing. In its filing,...

Two CU Employees Are Headed To Olympic Games.
August 4, 2008... SAN FRANCISCO -- Two CU employees are headed to the Olympics in Beijing after winning a promotion sponsored by Elan and Visa. Kendra Richards from Desert Schools FCU in Phoenix and Lisa Short from USA CU in Troy, Mich. were selected as part of...

EECU Named To Local Paper's 'Best Of' List.(Educational Employees Credit Union)(Brief article)
August 4, 2008... FORT WORTH -- The $740-million EECU was named Best Local Bank/Credit Union in a poll of readers of the Star-Telegram here. "It's a strong testament to EECU's mission to serve the needs of Members, maintain good stewardship and stay involved in...

Feds Bust Ring In TJX, BJ's Data Breaches.
August 11, 2008... WASHINGTON -- Over the past few years and months authorities have been arresting suspects they believe were responsible for the massive data security thefts at BJs Wholesale Club, Dave & Busters and TJX Cos., all of which forced credit unions...

Auto Lending, Leasing Trouble May Benefit CUs.
August 11, 2008... AUBURN HILLS, Mich. -- A decision by one major auto manufacturers financial arm to cease vehicle leasing could open up opportunities for credit unions to recapture lost market share in the auto loan sector. In another sign that the credit...

Banking On Black In Sea Of Red: Why 1 CU In Otherwise Tough Market Is Prospering And The Advice It Shares.
August 11, 2008... MIAMI -- In a sea of red numbers at many credit unions, one that continues to perform in the black is stressing the value of exploiting a niche, leveraging related fee income, and cautious underwriting. Our CEO, George Joseph, has been very...

'Guerilla' Ad Helps Tiny CU Launch New Name, FOM.
August 11, 2008... SPOKANE, Wash. -- After weeks of wondering who was behind the ad campaign that proclaimed It just works for me without any name, logo or explanation, local TV viewers and motorists finally had their answer: tiny The Union CU. The so-called...

ON DEADLINE.
August 11, 2008... CU CEO Salaries Rise Faster Than Economy MADISON, Wis.Salaries for credit union CEOs salaries rose 7% in 2008, faster than the rest of the economy but down slightly from last year, according to the 2008 CUES Executive Compensation Survey....

Wescom CU Closes 11 Branches In Wake Of Mid-Year $10.9M Loss.
August 11, 2008... PASADENA, Calif. -- Wescom Credit Union here will consolidate 11 branches, discontinue Sunday hours in most locations and further reduce its workforce, the latest sign of how Southern Californias slow and even reversing mortgage market is...

Stuffers Helping CUs To Get Out The Safety Message.
August 11, 2008... WEST PALM BEACH, Fla. -- Consumers across the country are seeing the headlines and TV news reports about bank failures and wondering about the safety of their deposits at your credit union. In response, Credit Union Journal has created...

WORTH NOTING.
August 11, 2008... Federation Opens San Fran Office SAN FRANCISCOThe National Federation of Community Development Credit Unions is opening a regional office in San Francisco. It will be staffed by Rafael O. Morales, currently its public affairs officer,...

Why One Niche-Based CU Isn't Looking To Expand Its Field Of Membership.
August 11, 2008... SPOKANE, Wash. -- Not every small credit union is looking to mergeSpokane Law Enforcement CU, in fact, is thriving thanks to the personal attention its size allows it to give to its members. That was the message from Judy Nichols, president...

Credit Unions In The Media.
August 11, 2008... The Quad City Times provided coverage of IH Mississippi Valley CUs ongoing fight to keep online scammers from stealing from its members and the credit union. The paper noted that the CU has had to fight off 85,000 scam attempts, such as...

Now In The Market.
August 11, 2008... CULA Offers CUs New Funding SAN DIEGOCredit Union Leasing of America (CULA) said that under its new GAP policy for consumer leases, participating credit unions now have the ability to offer funding up to 135% of MSRP. This is convenient for...

One More Thing Not To Talk About At The Dinner Table.
August 11, 2008... OK, so apparently there is one more item you should add to the verboten list of things you shouldnt bring up at dinner or among polite company. In addition to sex, politics and religion, add financial institution examinations and examiners. ...

CALENDAR.(Calendar)
August 11, 2008... AUGUST Aug. 14-20 National CU Foundation Development Education Training, Islan Wood, Bainbridge Island. For info: 608-358-9183 or cudencuf.coop Aug. 17-20 Defense CU Council Annual Meeting, The Drake Hotel, Chicago. For info:...

Fractured Examination System In Need Of Fresh Thoughts.
August 11, 2008... I read with great interest Frank Diekmanns editorial in the July 21 issue on NCUA and the current losses being experienced in the NCUSIF. A couple of items to note: 1) While I avidly support the dual chartering system, I think the federal...

What NCUA Needs To Do To Clean Up Dodge City.
August 11, 2008... In response to Frank Diekmanns column in the July 21 issue, the new sheriff, Michael Fryzel, needs to clean up Dodge City and, as Mr. Diekmann implied, his own deputies. The NCUA became complacent and turned its focus away from safety and...

The Secrets of The Truly Successful Strategic Planners.
August 11, 2008... Here we are again beginning to think about planning for next year. Now that we know the NCUA examiners will be asking to review our Strategic Plan, it may be time to put a bit of extra effort into our standing document this year. We all...

How To Invest Now To Take Advantage Later.
August 11, 2008... Todays investors are caught in a battle between rising inflation and a slowing economy, translating into a debate over whether interest rates will be moving lower or higher in the near future. The variables continue to change daily, but one...

Fed expected to implement card reform By End Of Year.(Federal Reserve Board)
August 11, 2008... WASHINGTON -- Though Congress is unlikely to pass legislation to reform credit card practices this year, the Federal Reserve board is likely to implement some reform by year-end in response to a deluge of consumer comments on similar proposals....

Authorities Want Answers from NCUA on Broker Suicide.
August 11, 2008... NEW LONDON, Conn. -- State Attorney General Richard Blumenthal last week called on NCUA to disclose more information about the prior weeks closure of New London Security FCU, hours before its investment advisor plunged to his death in an...

NCUA Shutters Start-Up Port Trust FCU After Just 2 Years.
August 11, 2008... CHARLESTON, S.C. -- NCUA last week placed tiny Port Trust FCU into liquidation, which was chartered less than two years ago. Port Trust Federal Credit Union, which opened in 2006, had less than $500,000 in assets, a loss of $6,800 at...

AGENDA.
August 11, 2008... EVENTS U.S. Senate is in recess through Sept. 7 for its Summer State Work Period. U.S. House of Representatives is in recess through Sept. 5 for its Summer District Work Period. Democratic National Convention in Denver, Aug....

People.
August 11, 2008... WestStar Credit Union, Las Vegas, named Dick Holtzclaw senior vice president and chief financial officer. CUNA, Madison, Wis., elected Susan Streifel chair of its awards committee and a member of its Governmental Affairs Committee. ...

City Hall To Move Into CU Office.
August 11, 2008... FERNDALE, Mich. -- The City Council of this enclave of 25,000 residents is exploring moving the city hall into the second floor of Credit Union Ones offices, which would be the first credit union to house a city hall. The plan would...

2 Found Guilty Of $250,000 Heist.
August 11, 2008... RIVERDALE, Ill. -- A 23-year-old woman, part of a self-described Bonnie and Clyde duo, was found guilty by a federal jury of the Jan. 19, 2006, armed robbery of more than $250,000 from Acme Continental CU. Asia Hill, who told tellers that...

Desert Schools Offers Dental Plan.
August 11, 2008... PHOENIX -- Desert Schools FCU is introducing a dental insurance plan to its members, one of the first credit unions in the country to do so. Coverage is provided in conjunction with Delta Dental of Arizona, the leading dental benefits...

How 1 CU Implemented A Formal Succession Plan For Its Directors.
August 11, 2008... OTTAWA, Ill. -- Jack Teausant has a simple way of assessing the state of board succession planning at many credit unions: go to a large credit union convention and take a good look at attendees. It concerns me when I go to these different...

CUs Finally Moving Succession Planning Off The Back Burner.
August 11, 2008... PHOENIX -- Succession planning may be moving off the CU back burner, says a national executive search firm thats seen requests for succession planning consultation significantly increase over the last two years. In the past 18 to 24 months...

Now In The Market.(Website overview)
August 11, 2008... Affinion Launches New Website NORWALK, Conn.uAffinion Security Center, a provider of identity theft protection services, has launched a new website it said will act as a platform for a robust line of identity theft protection solutions....

2009 Strategic Planning.
August 11, 2008... Many credit union management teams and boards of directors soon will sit down to do their strategic planning for 2009 and beyond. Whether in their own offices or a remote location, regardless of asset size, all will be confronting internal and...

Why Charter Oak FCU Didn't Wait For Traditional Planning Time.
August 11, 2008... GROTON, Conn. -- Not waiting for this years strategic planning session to address the road ahead, Charter Oak Federal Credit Union here discussed future objectives at its quarterly employee meeting. The staff meetings are something new CEO...

cujournal.com SURVEY.(Brief article)
August 11, 2008... In your strategic planning for 2009: Current economic conditions are not affecting our long-range plan 13% Current economic conditions will be a factor in our plan 62% Current economic conditions will be a driver in...

Now In The Market.
August 11, 2008... Navy FCU Selects WAUSAU-FS VIENNA, Va.uNavy FCU has selected WAUSAU Financial Systems (WFS) to provide it with a web-based branch capture application for capture, balance and review of all back counter check images. WFS will install the...

Quick Read.
August 11, 2008... BEN STEIN SLATED TO OPEN UPCOMING CUES MEETING MADISON, Wis.Actor, economist and author Ben Stein will be the opening speaker at CUES CEO Network 2008, Nov. 2-5 at the Four Seasons Hotel Las Vegas. CUES said Stein will deliver? his...

Correction.(Correction notice)
August 11, 2008... An incorrect photo of Greg Smith, president of Pennsylvania State Employees CU, appeared in the Aug. 4 issue. The Journal regrets the error. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved....

TJX Ringleader Was Govt. Informant.
August 11, 2008... BOSTON -- Last weeks charges against 11 individuals in the 2006 hacking of TJX Cos. and several other major retailers may be jeopardized by the fact the alleged ringleader was an informant for the U.S. Secret Service, which cracked the case....