Credit Union Journal articles from December 2003

Credit Union Journal archives from December 2003

Members Challenging Washington CU's Conversion To Bank.(Columbia Credit Union)
December 1, 2003... State and federal regulators are reviewing the Nov. 3 member vote to convert Columbia CU to a mutual savings bank after several members raised questions about potential irregularities in the vote, the closest yet for a credit union conversion...

Loans Are Nothing To Kid About: CUs Find Lending To Child Care Centers Pay Off In Multiple Ways.
December 1, 2003... Credit unions looking to deepen their roots in the communities they serve and open up a whole new lending market for themselves in the process may want to consider offering childcare loans, a specialized form of member business lending that can...

New Bill Offered To Expand Host Of Credit Union Powers.(credit union reform bill)
December 1, 2003... Just before Congress adjourned last week several key credit union supporters introduced a wide-ranging credit union reform bill that would once again expand field of membership allowances, lift restrictions on business lending, and allow NCUA...

Measuring Return On Training Dollars Increasingly Possible.
December 1, 2003... Measuring employee training and development's impact on the bottom line and establishing return-on-investment (ROI) for a training program has long been thought to be akin to "counting water"-just about impossible. That is until now, according...

ON DEADLINE.(Scott Earl leaves Utah League of Credit Unions)(American Dream Downpayment Assistance program)(Brief Article)
December 1, 2003... Earl Leaves Utah League SALT LAKE CITY -- Scott Earl, who has spearheaded the credit union fight with bankers over the past decade, resigned as president of the Utah League of CUs last week. Earl, president of the league since 1991, said...

Financial Literacy Commission Included In Measure.(Financial Literacy and Education Commission)
December 1, 2003... Lawmakers reconciled their differences on the fair credit reporting bill and easily passed the credit union-backed measure before adjourning for the year last week. The bill will give credit unions the renewal of federal exemptions of...

Consumers Indicate They'll Put Less Under The Tree.(survey of planned holiday spending)
December 1, 2003... A new survey indicates that during this year's holiday season consumers are feeling a bit more Grinch-like. The fourth annual survey sponsored by the Consumer Federation of America (CFA) and CUNA found consumers saying they would restrain...

Worth Noting.(Corporate Central Credit Union and Georgia Central Credit Union announce patronage refunds)(Jeff March of Citadel Federal Credit Union named business leader)(Somersworth Credit Union now Salmon Falls Community Credit Union)(Brief Article)
December 1, 2003... Corporates Announce Payouts HALES CORNERS, Wis.-Two corporates are paying patronage refunds. The $1.7-billion Corporate Central Credit Union will refund $380,000 to its members, based on the extent of the credit union's participation with...

Considering A New Model For Consumer Loan Management.(credit union loan portfolios)
December 1, 2003... Now that we are deep into 2003, we can look back on the past year and assess what lessons should be learned. Consumer reaction throughout the economic downturn of 2002 was significantly different than in past downturns, further eroding the...

Lots Of Lenders, Lots Of Borrowers-What To Do.(credit unions marketing to small business)
December 1, 2003... In searching for an effective way to build their bottom lines, credit unions need look no further than small-business accounts, a lucrative market often underserved by banks, one person is advising CUs. But before deciding to court small...

Chatfield: 'Vicious' Attacks To Continue.(Dave Chatfield,credit union executive, speaks about political power of banking industry)
December 1, 2003... Banks' attacks on credit unions have gone on for years, but never as "vicious and persistent" as in recent months, declared Dave Chatfield, president and CEO of the California and Nevada CU Leagues. "We battled some difficult legislation...

Product & Service.(PATRIOT Act Connection solution chosen by Randolph-Brooks Federal Credit Union)(Cavion Plus new company formed by merger of Liberty Internet Services and CUNA Network Services)(IBT names Mylle Mangum CEO)
December 1, 2003... Randolph-Brooks Selects Solution SAN ANTONIO-The $2-billion Randolph-Brooks Federal Credit Union here has selected the PATRIOT Act Connection solution from Bankers Systems, Inc. to help it combat fraud and comply with the customer...

Why 1 Mich. CU Was Named A Good Workplace.(Michigan's E & A Credit Union)
December 1, 2003... When E & A Credit Union received honorable mention in the area's Thomas Edison Business Award competition last year, the staff used it as a motivator to make some positive changes. They started with a satisfaction survey that allowed...

Dollars Talk, Or Tellers Walk.(survey of credit union tellers show underpaid more likely to quit)(Brief Article)
December 1, 2003... Not too surprisingly, salary is the biggest driver of teller turnover. But relatively modest pay increases can sharply reduce the rate of turnover, according to CUNA's new "E-Scan's 2003 Small CU Staff Salary Survey." As the analysis...

CUSO To Offer Insurance Services.(Provident Central Corp)(Brief Article)
December 1, 2003... Provident Central Corp., the CUSO of Provident Central Credit Union, has signed with BIS, Inc., a provider of turnkey insurance agency solutions, to provide insurance agency services to the credit union's members and those of other Cus. ...

Product & Service.(Security Federal Credit Union chooses NYCE Network)(Georgia Central Credit Union partners with Southeast Corporate Federal Credit Union)(CU Services Inc. signs agreement with John M. Floyd and Associations inc.)(TRE Acquires QuickFile USA)
December 1, 2003... Security FCU Chooses NYCE MONTVALE, N.J.-Security FCU has designed the NYCE Network as its primary provider of PIN debit transactions. As part of the seven-year agreement, Security Federal will use NYCE for switching all of its POS debit...

Seven Best Practices To Support Training.(Brief Article)
December 1, 2003... Consultant Jeffrey Berk offered these seven best practices to support training measurement: 1. Understand the strategic role of training in supporting business drivers. 2. Work with training to map out the key performance indicators...

Check 21, New FOMs Seen As Opportunity.(Chrck Truncation Act and fields of membership)(Brief Article)
December 1, 2003... What does the Check Truncation Act (Check 21) and more open fields of membership have in common? Both offer vast opportunities to credit unions-but only if they recognize the potential pitfalls as well as the expected benefits, according...

Mitsubishi Selects Wescom As CU.(Mitsubishi Motors North America Inc. selects Wescom Credit Union)(Brief Article)
December 1, 2003... One Southern California credit union has added a potentially large SEG. Mitsubishi Motors North America, Inc., (MMNA) has selected the $2.5-billion Wescom Credit Union to be its employee credit union. As part of the agreement, a Wescom ATM...

It's Beginning To Look A Lot Like-A Lot of Money.(major spending bills approved by Congress)(Brief Article)
December 1, 2003... Christmas came early to Capital Hill this year. In one of the most prolific spending sprees ever engaged in by the United States Congress, leaders in both the House and Senate were busily stuffing pork and pet projects into major bills last...

CULAC Tilts Toward The GOP.(Credit Union National Association political action committees)
December 1, 2003... CUNA, which operates the biggest political action committee for credit unions, has been devoting increasing resources towards the Republican Party and its candidates as the GOP has strengthened its control in Washington. CUNA and its...

Senate Dems Take OCC To Task Over Preemption.( Office of the Comptroller of the Currency )(Brief Article)
December 1, 2003... Senate Democrats are taking the Office of the Comptroller of the Currency to task over efforts to preempt nationally chartered banks from state laws, just as Congress is completing work on a new fair credit law preempting banks and credit...

HUD Awards Nat'l CU Foundation $500,000.(National Credit Union Foundation)(Brief Article)
December 1, 2003... The National CU Foundation said it has received a $500,000 grant from the U.S. Department of Housing and Urban Development to help finance counseling programs at CUs for first-time homebuyers. The HUD money will go 14 CUs and 10 states that...

Hollen Is Named Shapiro Winner.(California Credit Union League honor)(Brief Article)
December 1, 2003... Stan Hollen, president and chief executive officer of Liberty Enterprises, has been named recipient of the California Credit Union League's highest annual individual honor: the Leo H. Shapiro Lifetime Achievement Award. The prestigious award...

CUNA CU To Build On Landfill.(Brief Article)
December 1, 2003... The $283-million CUNA Credit Union has been approved for a $300,000 grant to help build new headquarters on the site of a former landfill. The grant is from the Wisconsin Department of Commerce, which awarded seven Brownfields Grants to various...

HEW FCU OK'd To Serve DC.(Brief Article)
December 1, 2003... NCUA has approved an application from HEW FCU to expand its field of membership to cover the entire city of Washington, D.C., defined by the federal regulator as an underserved area. The $125-million credit union is based in the Capital city...

Travel Agency Opens Inside CUs.(Azumano Travel)(Brief Article)
December 1, 2003... Azumano Travel is opening four new travel offices here, including two inside credit union offices. The travel agencies, which will be managed by American Express and will retain the American Express brand name, will be located inside Watermark...

Ten Years And Thousands Of Miles Later, Ex-CEO Of Samoan CU Sentenced.(Bernard Gurr)
December 1, 2003... Bernard Gurr, the former manager of defunct American Samoa Government Employees FCU, was finally sentenced to prison, more than 10 years after the NCUA takeover of the tiny Pacific island's only credit union, ending the longest-running case in...

Nat'l Surcharge Free Network Planned.(Genpass Inc.'s MoneyPass network )(Brief Article)
December 1, 2003... Genpass, Inc. has announced plans to form a national surcharge-free ATM network. The new network, to be called MoneyPass, is to be formed out of the two networks GenPass currently owns: the MoneyMaker network in Texas and MoneyBelt in...

Foundation Reps At Enterprise Conf.(National Credit Union Foundation)(Brief Article)
December 1, 2003... Representatives of the National Credit Union Foundation (NCUF) were in attendance at the Enterprise Foundation's annual Network Conference. The Enterprise Foundation seeks to ensure affordable housing and a way out of poverty for all...

The CUJ Daily.(news from American credit unions)
December 1, 2003... Freddie Mac Overstated Earnings McLEAN, Va.-Freddie Mac reported it overstated its profits in 2001 by $989 million and understated profits in 2000 and 2002 by almost $5 billion as part of a scheme to smooth out earnings to please Wall...

Michael Elected CCUL Chairman.(California Credit Union League)(Brief Article)
December 1, 2003... Frank Michael, president of Allied Credit Union in Stockton, calif., has been elected chairman of the California league. Michael has been involved in credit unions since 1977, and was named CEO of Sun Pacific FCU in 1982. Over that time Michael...

Community Page.(community activities of credit unions)
December 1, 2003... FCCU Hosts Scholarship Competition TALLAHASSEE, Fla.-Florida Commerce Credit Union partnered with Florida State University Film School and hosted a scholarship competition for film students during the grand opening event at its new branch...

Striking Out On Their Own: One CU's Board Travels Hundreds of Miles Through Three States To Meet With Striking Members.
December 8, 2003... Kemba Charleston FCU board members logged more than 1,000 vehicle miles recently to assure striking Kroger employees that their credit union was willing to help. "Our main sponsor is the Kroger Company," said Joetta Heck, manager of KCFCU,...

Converting CU To Tap State Loophole; Complaints Lodged.
December 8, 2003... Columbia Credit Union, which is in the process of converting to a mutual savings bank, has invoked a loophole in the state credit union statute that will allow it to have its conversion vote certified under NCUA rules instead of the state's...

Get Ready: Loans To Outpace Savings.
December 8, 2003... A stealthily strengthening economy means credit unions soon should see their loans growing faster than their shares for the first time in several years, according to CUNA's economic staff. "Since 2001, savings growth has topped that of loan...

A Weary Earl Explains Reasons For Leaving.(Scott Earl leaves Utah League of Credit Unions )
December 8, 2003... A battle-weary Scott Earl has hung up his credit union sword in the belief that the Utah League of Credit Unions needed a change in leadership just as much as he needed a change in his life. "I needed a change. I am worn out. The continuous...

ON DEADLINE.(briefs)
December 8, 2003... New Mexico CUs Turn Back Unusual New Tax ALBUQUERQUE, N.M.-The New Mexico CU League turned back an unusual tax threat that would have levied a new tax on the league itself, along with other non-profits in the state. The proposal was...

Denial of $8M Claim Leads To Lawsuit Against CUMIS.(USAlliance FCU has filed a lawsuit against CUMIS Insurance Society)
December 8, 2003... USAlliance FCU has filed a lawsuit against CUMIS Insurance Society after the insurer denied a claim seeking reimbursement for an $8-million loss allegedly caused by an employee. The $530-million credit union is claiming CUMIS breached its...

CU Groups Quick To Point To Soaring Bank Profits.
December 8, 2003... Credit union trade groups wasted little time responding last week to FDIC data showing a third consecutive quarter of record bank profits. The FDIC said banks earned $30.4 billion during the third quarter of 2003. The quarterly profits...

Sponsor To Change CU, Boot Digital.(Addison Avenue Federal Credit Union becomes Hewlett-Packard's new credit union)
December 8, 2003... Digital FCU, the largest credit union in New England, is getting kicked out of Hewlett-Packard Corp. offices to provide room for HP's main credit union, Addison Avenue FCU. The move means that Digital FCU, whose corporate sponsor Digital...

Stolen PCs Included Member Data.(Brief Article)
December 8, 2003... Thieves who broke into a branch of California Credit Union here made off with a computer hard drive that contains significant member data. The 49,000-member California CU has sent a letter to members alerting them to the theft of data that...

Worth Noting.(briefs)
December 8, 2003... Texas Dow To Refund $2.62M LAKE JACKSON, Texas-The $800-million Texas Dow Employees Credit Union has become among the first credit unions in 2003 to declare a special dividend for members. The credit union said it will pay a $2.62 million...

You're Getting Sleepy, So Sleepy. Now, Just Sign This Here.
December 8, 2003... Perhaps the biggest advantage that bad guys have in their sundry fights around the world is that it's just so darn tiring to be a good guy all the time. Credit unions should certainly know that as well as anyone. The nation's banking...

Improving Economy Puts New Emphasis On Managing Risk.
December 8, 2003... As the economy starts to turn around and we enter a period of rising interest rates, managing interest-rate risk will become increasingly important to many credit unions. Unmanaged, interest-rate risk can quickly erode both the net interest...

Column Was Right On The Mark.(Letter to the Editor)
December 8, 2003... I liked Frank Diekmann's column and his experience after his credit card was sold as part of a portfolio sale by his credit union, and especially the clarity of identifying the membership relationship itself as key to the credit union "core...

Product & Service.(briefs)
December 8, 2003... WesCorp, PacCorp Merger OKd HONOLULU-The former PacCorp and WesCorp have officially completed their merger. PacCorp served credit unions in this state and Guam. The $23-billion, San Dimas, Calif.-based WesCorp said that it will retain...

A Management Message Right Out Of The (Jet) Blue.
December 8, 2003... In order to become a great, people-centric credit union, the managers should define the values it will operate by, involve employees in recruiting and hiring, and constantly exceed the expectations of the employees. That was the message...

Advice On How CUs Can Respond To Banks In The Media.
December 8, 2003... The banking industry's assaults upon credit unions in the courts and legislatures is also likely to be extended to the mass media, according to one person. But there is a great deal credit unions can do to counter that. Phoebe Howard, a...

Product & Service.
December 8, 2003... Tower FCU Converts To PSCU-FS LAUREL, Md.-Tower Federal Credit Union has converted its credit card processing to Payment System for Credit Unions Financial Services. The $1.3-billion Tower FCU will use PSCUFS' CreditAbility processing...

Last-Minute Effort On Bankruptcy Bill Fails.(Brief Article)
December 8, 2003... The last-minute machinations of Congress as it struggles to complete its year-end work is often amusing. This year those machinations included a failed bid to move the dormant bankruptcy reform bill by attaching it to the broad omnibus...

Ruling Strikes District That CU Candidate Lost.
December 8, 2003... A state appeals court last week struck down the Republican-drawn congressional redistricting that helped the bankers' candidate, Robert Beauprez, defeat credit union-backed Michael Feeley last year in the nation's closest congressional race for...

Fannie, Freddie Say No To Some NJ Mortgages.(Brief Article)
December 8, 2003... Fannie Mae and Freddie Mac said they will stop buying high-cost mortgages made in New Jersey because of the state's new anti-predatory lending law. Under the new state law a loan is considered high cost if its interest rate is five percentage...

Members Of Foundation OK'd For Membership.(Brief Article)
December 8, 2003... State regulators said they have approved a request from Community Credit Union to allow members of its newly formed non-profit Community CU Foundation to be eligible for membership in the Plano-based credit union, the third state charter to...

Lending Lessons 101: You May Be Overcharged.(Brief Article)
December 8, 2003... As many as one-million student borrowers will be paying more on their monthly payments as a result of a computer glitch at Sallie Mae, the largest servicer of student loans in the country, the company said. Because of the error, borrowers were...

People.(appointments)
December 8, 2003... State National Companies, Fort Worth, Texas, named Eric Stritchfield regional sales manager for the Arizona/Nevada region. Empire Corporate Federal Credit Union, Albany, N.Y., named Christopher J. Duwe director, business continuity planning...

The CUJ Daily.(briefs)
December 8, 2003... Community CU Adds To FOM AUSTIN, Texas-Community CU was given permission by state regulators to expand its already formidable field of membership by adding two million residents of Tarrant and Denton counties to it. The $900-million...

Community Page.
December 8, 2003... Workers CU Holds Gives Away Prizes FITCHBURG, Mass.-All eight branches of Workers Credit Union held a month-long Summer Sizzler celebration and gave away $300 gift certificates, cash prizes, and a grand prize trip to Las Vegas. CU...

Orange County Teachers Distributes $338K To Schools.(Brief Article)
December 8, 2003... Orange County Teachers FCU said it has distributed $338,338 to local schools through its "Step Up for Education" program. The program is aimed at providing extra funds to cash-strapped schools. Earlier this year, OCTFCU kicked-off the Step Up...

Calif. League Publishes Manual On Hispanic Market.(Brief Article)
December 8, 2003... The California Credit Union League has distributed to its member credit unions in this state and Nevada a 438-page manual on understanding the multifaceted Hispanic community and how best to provide native- and foreign-born Latinos with...

CUNA CU Gets Grant To Build HQ On Former Landfill Site.(Credit Union National Association Credit Union )(Brief Article)
December 8, 2003... The $283-million CUNA Credit Union has been approved for a $300,000 grant to help build new headquarters on the site of a former landfill. The grant is from the Wisconsin Department of Commerce, which awarded seven Brownfields Grants to various...

Williams Employees CU OK'd For Broad FOM Expansion.
December 8, 2003... Williams Employees CU said state regulators have approved its application to convert to a community charter encompassing almost 900,000 residents in Tulsa County and the five contiguous counties of Osage, Creek, Rogers, Wagoner and Okmulgee....

Changes At AACUL.(American Association of Credit Union Leagues)(Brief Article)
December 8, 2003... The resignation by Scott Earl from the Utah League of Cus follows by just two weeks that of John Franklin of the South Carolina league, and has led to a shift in leadership of the American Association of CU Leagues (AACUL). According to CUNA,...

Corrections & Clarifications.(Correction Notice)
December 8, 2003... A photo that appeared in the Nov. 17 issue was incorrectly captioned. The person in the photo was Gina Galarza, marketing coordinator for Baxter CU. Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

A Credit Union Conversion 'Poison Pill': WSECU Board To Vote This Week On Proposal.
December 15, 2003... As controversy swirls around credit unions that have converted or are seeking to convert to a bank charterone credit union here is poised to make it more difficult for the co-op to morph into a bank in the future. Washington State...

Making An IT List, Checking It Twice: CU Execs Asking Santa For Web-Driven Technologies.
December 15, 2003... Forget Game Boy and Bratz-topping The Credit Union Journal's Technology Wish List this season are "hot'' Internet enhancements backed by shiny, new core system improvements. These credit union "toys" support the "competitive advantage...

Four New Names Surface: Candidates Rumored To Be On List For NCUA Board Post.
December 15, 2003... Several candidates have apparently thrown their hats into the ring for the NCUA board seat currently occupied by Chairman Dennis Dollar, whose six-year term on the three-member panel expired last April, according to several sources. Among...

WesCorp, 4 Calif. CUs To Self-Insure On Workers' Comp.
December 15, 2003... Frustrated over the soaring cost of workers' compensation coverage, WesCorp FCU and four large California credit unions have joined to form their own self insurance group to cover workers' claims. The new cooperative is an outgrowth of...

Mo. Banks Win Bid To Challenge CU's Field of Membership.
December 15, 2003... The state Supreme Court last week opened the door to bankers' appeals on field of membership by ruling that the bankers have proper legal standing to challenge rules and policies issued by the state's credit union regulator. Up until now,...

ON DEADLINE.
December 15, 2003... 2003 The Year Of League President Turnover WALLINGFORD, Conn.- Kevin Stewart has become the third league president in a month to announce he is leaving the job. Stewart has resigned as CEO of the Connecticut Credit Union Association...

Blaine To Debate ABA Chair During CUNA Conference.
December 15, 2003... Jim Blaine, the president of State Employees Credit Union and a frequent columnist in The Credit Union Journal, will square off with the chairman of the American Bankers Association in a debate over credit union issues during CUNA's upcoming...

Utah CU Nemesis Could Get Backing From CUs.
December 15, 2003... The Speaker of the House in Utah, Marty Stephens, who has been a consistent critic of credit unions, has resigned his position as vice president of Zions Bank in order to campaign full-time for governor. Local media has reported that Stephens...

Home Equity Lines Are Up As Home Values Increase.
December 15, 2003... Americans are increasingly tapping their home equity to finance purchases. The Consumer Bankers Association has released new data showing that during the second quarter of this year the size of home equity lines and loans increased from the...

Louisiana, Mississippi In Shared Branching Deal.
December 15, 2003... The Louisiana Credit Union League (LCUL) and the Mississippi Credit Union System (MCUS) have entered into an agreement that will allow Mississippi credit unions to join the nationwide Credit Union Service Centers (CUSC) shared branching network...

Navy Federal Assisting Employees Called To Duty.
December 15, 2003... The $19.9-billion Navy FCU is offering supplemental pay to employees who are activated or volunteer for military duty. Employees qualify for the supplemental pay if activated for a period exceeding 30 days and if their Navy Federal pay exceeds...

Holidays Lead To Increase In Address Change Scams.
December 15, 2003... It's the most wonderful time of the year-for identity thieves. A number of credit unions have seen a surge in change-of-address attacks on their accounts, according to CUNA Mutual Group, which has put out a risk alert urging CUs to guard...

NCUA OKs 2 More TIP Charters.
December 15, 2003... NCUA said it has approved applications for two airline credit unions, NWA FCU and American Airlines FCU, to convert to new tradewide, industywide or professionwide (TIP) charters to serve employees of the airline industry. The new TIP...

George Wins Director of the Year.
December 15, 2003... J. Alvin George, director of North Island Financial Credit Union in San Diego, was named the 2003 CUES Directors Educational Forum Director of the Year during CUES' Directors Conference here. A CU volunteer since 1948 with what is now Financial...

Worth Noting.
December 15, 2003... Student-Run CUs Exceed 100 WASHINGTON, D.C.-The number of student-run credit unions now exceeds 100. According to data compiled by CUNA, there are now 107 CUs in 29 states operating in 310 elementary, middle and high school branches. The...

Could ET Phone Home If He Encountered Your Phone System?
December 15, 2003... We all know how important that first impression can be. Whether it's the first view your member sees when they walk into a branch or the logo of your credit union, it's all part of your brand and must present the right image immediately. When...

Why 1 Ark. CU Has Gone To 96-Month Auto Term.
December 15, 2003... Arkansas Federal Credit Union has joined a handful of financial institutions across the country in "making cars more affordable" by offering 96-month auto financing. The $364-million credit union, which serves 58,000 members worldwide, is...

Wescom Selected To Provide CU Services To Mitsubishi.
December 15, 2003... Wescom Credit Union received an early Christmas present one week before Thanksgiving. The $2.5-billion credit union that serves 200,000 members was selected by Mitsubishi Motors North America to provide credit union services for employees at...

Product & Service.
December 15, 2003... Affinity FCU Selects AGAC BASKING RIDGE, N.J.-The $1.3-billion Affinity FCU has selected American General Assurance Company (AGAC), part of American International Group, Inc. (AIG), to service Debt Protection programs to its membership....

One Credit Union's MATRIX For Avoiding Business Interruptions.
December 15, 2003... The Matrix is everywhere at Eastern Financial Florida Credit Union (EFFCU). EFFCU's own business continuity spreadsheet, dubbed The Matrix, "assures the organization's ability to offer products and services following a serious business...