Credit Union Journal articles from July 2003

Credit Union Journal archives from July 2003

Taking A Bite From Predators: University Study Suggests Anti-Predatory Lending Law Is Achieving Its Goal Of Protecting Consumers.
July 7, 2003... An anti-predatory lending law enacted in this state more than three years ago has done exactly what was intended-protect consumers from unscrupulous lenders without limiting their access to subprime credit, said an author of a study on the...

The Personal Side of Business: Credit Unions Expanding Into Business Services Will Find Secret To Success No Secret, Says Analyst.
July 7, 2003... Member business services-not just member business loans-continue to offer a huge opportunity for credit unions-and the key to success is emphasizing the personal touch businesses can expect from a credit union, according to several member...

Advice, Strategies Shared As Rates Continue To Slide.(Industry Overview)
July 7, 2003... Interest rates continued to crash last week with a thundering jolt onto credit union balance sheets. The Fed Funds market, which holds as much as $40 billion in overnight credit union deposits, arrived at the 1% mark targeted by the...

Baseball. Hot Dogs. And Another Calif. Budget Impasse.(credit unions have programs in place for state employees)
July 7, 2003... This state's credit unions are once again preparing to assist state employees affected by another budget impasse. California's constitution says a new state budget must be adopted by June 15, more than two weeks ahead of the end of the...

ON DEADLINE.(briefs)
July 7, 2003... CU That Converted To Bank To Go Public FIFE, Wash.-Rainier Pacific Savings Bank, which converted from a credit union 18 months ago, is planning to raise as much as $80 million with an initial public offering of eight million shares. The...

NCUA Submits Reg Relief Requests.(National Credit Union Administration)(Brief Article)
July 7, 2003... At the request of Senate Banking Committee Chairman Richard Shelby (R-AL), NCUA has submitted its suggestions for measures to be included in a Senate regulatory relief bill. NCUA's requests are related to: asking that credit unions be...

Wegner Nominations Now Open.(16th Annual Herb Wegner Memorial Awards)(Brief Article)
July 7, 2003... Nominations are being accepted for the 16th Annual Herb Wegner Memorial Awards, the credit union movement's highest honor, recognizing individual, organizational and lifetime achievement by credit unionists dedicated to the National Credit...

Manager of Latino Relations Named.(Charlotte Metro Credit Union names Elizabeth Ramos)(Brief Article)
July 7, 2003... Charlotte Metro Credit Union has appointed someone to fill a relatively new post at a credit union: Manager of Latino Relations. The credit union has named Elizabeth Ramos, a native Puerto Rican, to fill the position, after having previously...

Senate OKs Check Truncation Act.(Brief Article)
July 7, 2003... The Senate voted to approve the Check Truncation Act, which will let credit unions and banks process all checks electronically. The Senate version must now be reconciled with a separate, but almost identical version of the bill pass by the...

Consumer Protections Proposed.(Department of the Treasury)(Brief Article)
July 7, 2003... Representatives of CUNA were told by Treasury Secretary John Snow that Treasury was preparing a package of changes to boost protections for consumers, including: expanding access to free annual credit reports; directing the FTC and financial...

Calif. League Says Bank Criticisms of MBL Have No Basis.(California Credit Union League)
July 7, 2003... Bankers' public opposition to credit unions engaging in member business lending don't jibe with what they are saying privately, according to the California Credit Union League. The league said that bankers' claims that small business...

Members Get A Name To 'Think' About.(IBM Endicott/Owego Employees Federal Credit Union renamed Think)
July 7, 2003... IBM CU employees don't have to think about it anymore. After two years of research and testing by staff and an outside branding firm, they have agreed on a new name that not only reflects its growing field of membership, but also keeps the...

Liberty, OSI Enter Deal; FiTECH Sold.(Open Solutions, Inc. acquires FiTECH Systems from Liberty Enterprises Inc.; )(Brief Article)
July 7, 2003... Open Solutions, Inc. (OSI) has acquired the Liberty FiTECH Systems data processing subsidiary of Liberty Enterprises, along with the MANAGER GOLD product line. At the same time, Liberty reported it is investing in Open Solutions and that...

Worth Noting.(briefs)(Obituary)
July 7, 2003... Nassau County FCU CEO Dies GARDEN CITY, N.Y.-Ralph W. Hillman, CEO of Nassau County FCU, has died. Mr. Hillman had been with the credit union for the past 13 years, after beginning in credit unions with Navy FCU (as the youngest branch...

There Are Some 'Secrets' That Are Well Worth Telling.(Editorial)
July 7, 2003... Perhaps you shouldn't read this. And if you do, don't tell anyone. Since its inception, The Credit Union Journal has always striven to ensure marketing and advertising by credit unions receives adequate coverage. In addition to regular...

Don't Recognize Your Own Tellers? Study Of Turnover Says You're Not Alone.(Brief Article)(Industry Overview)
July 7, 2003... Slightly more than one in four credit union tellers were new to members during 2002, according to a just-released survey. D. Hilton Associates, Inc. said its 2003 Employee Hiring and Turnover Survey found that 28% of employees with credit...

Two Corporates Create Online Loan Package Site.(Georgia Central Corporate Credit Union/Constitution State Corporate )(Brief Article)
July 7, 2003... Constitution State Corporate and Georgia Central have created an online marketplace for credit unions seeking to buy or sell loan packages that is expected to go live in the next few weeks. Working with SmartSource Solutions,...

CUNA In Deal Offering Info About SBA Lending Online.(Credit Union National Association agreement with SBAGateway)(Brief Article)
July 7, 2003... CUNA said it has reached an agreement with SBAGateway, an online resource on SBA lending, to offer credit unions a discount on the service. According to CUNA, SBAGateway contains information on all legislation, policy updates, standard...

Using Shared Employees To Expand Services Is Extolled.
July 7, 2003... Employees of three prominent credit unions told attendees of CUNA Mutual Group's Discovery Conference on Friday how their "Shared Employee" programs have taken member relationships to another level, not to mention the professional development...

'A Holding-On-To-Assets Strategy'.(trust services)
July 7, 2003... With economists predicting between $12 trillion and $17 trillion will pass from one generation to the next in the coming decade, credit union members will need an effective way to accommodate that "money on the move." The best way to...

Product & Service.(briefs)(Product/Service Evaluation)
July 7, 2003... BIS Expands Website Offerings SPRINGFIELD, Mass.-BIS Inc., a provider of turnkey insurance agency solutions for banks and credit unions, has expanded its website to feature what it says is the nation's first on-line insurance sales...

Advice On Getting A Return On No-Margin Loans.
July 7, 2003... Declining rates have squeezed margins so that on many loan products profit is almost non-existent, according to two speakers at CUNA Mutual Group's Discovery Conference here. "If you haven't looked at individual loan profitability lately,...

'Changes In Market Have Led To Increased Risk Exposures'.(Industry Overview)
July 7, 2003... Risk exposures for credit union collateralized loan portfolios have increased significantly, according to one person. "Risk exposures on collateralized loans have traditionally been well understood and anticipated by collateral protection...

Other Discoveries.(Felicia Schoenenberger speaks on attracting younger members to credit unions)
July 7, 2003... Lessons From The X and The Y BOCA RATON, Fla.-As Generations "X" and "Y" enter their borrowing years, and "Baby Boomers" become "Matures," segmentation will be key to member attraction and retention, Felicia Schoenenberger, CUNA Mutual...

The CUJ Daily.(briefs)
July 7, 2003... Flight Attendants' Dues Deducted APPLE VALLEY, Minn.-NWA FCU has agreed to automatically deduct dues for the new flight attendants' union at Northwest Airlines after the airline refused to do it. Dues owed to the Professional Flight...

Analyst: If Goal Is To Boost ROA, Reshaping Of Loan Portfolio Likely Required.(Return On Assets)(Tim Gardner of CUNA Mutual Group)
July 7, 2003... Credit unions looking to improve their Return On Assets (ROA) ratio may have to radically reshape their loan portfolios, according to one financial consultant who demonstrated six tools credit unions can use to boost ROA. The six tools:...

A Case Study To Assist In Deciding Whether To Sell Credit Card Portfolio.
July 7, 2003... Considering selling your credit card portfolio? CUNA Mutual Group Financial Consultant Tim Gardner demonstrated what credit unions need to look at in order to come to a decision that makes sense both in the short and long term. ...

NCUA Begins Discussions On Risk-Based Capital.(National Credit Union Administration)
July 7, 2003... NCUA has begun preliminary discussions with Congress aimed at enacting a risk-based capital system for credit unions. In draft language sent to the House Financial Services Committee and obtained by The Credit Union Journal, NCUA proposes...

NASCUS Presses Senate On Secondary Capital.(National Association of State Credit Union Supervisors)(Brief Article)
July 7, 2003... Meantime, NASCUS urged members of the Senate drafting their own regulatory relief bill for financial institutions to include a provision allowing the hundreds of state-chartered credit unions allowed to raise secondary capital to count that...

Speedy Efforts Expected On FCRA Reauthorization.(Fair Credit Reporting Act exemptions)
July 7, 2003... Treasury Secretary John Snow said last week the Bush administration will support efforts to reauthorize the seven exemptions from state laws in the Fair Credit Reporting Act. The White House endorsement is widely expected to speed action...

Two More Utah CUs Look To Move To Fed Charter.(Brief Article)
July 7, 2003... Two more Utah credit unions have applied to NCUA to convert to federal charter, making a total of eight over the last two years and five in just the past three months, since the state legislature convened a task force to study a credit union...

People.(appointments)(Brief Article)
July 7, 2003... ESL Federal Credit Union, Rochester, N.Y. named David L. Fiedler president and chief executive officer, Faheem A.R. Masood senior vice president, marketplace manager, Leo Iacobelli president and chief operating officer, ESL Investment...

Community Page.(brief items)(Industry Overview)
July 7, 2003... CUs' Car Sale Tops $7 Million DALEVILLE, Ala.-Army Aviation Center Federal Credit Union, Fedapostal Federal Credit Union, and MTC Federal Credit Union hosted the two-day 19th Annual New Car/Recreational Vehicle/Boat Show and Sale. More...

Corrections & Clarifications.(Correction Notice)
July 7, 2003... The $136-million MidWest Financial Credit Union was founded in 1938 as University of Michigan Hospital Employees Credit Union. In 1998, it became MidWest Financial CU to expand its reach in the community. Copyright 2003 Thomson Media Inc....

Survey: CU CEOs Get Healthy Pay Increases, But Still Trail Banks.
July 14, 2003... Credit unions bucked the economic trend that lead most other executives to see smaller raises this year, with CU CEO salaries growing at a faster rate than their counterparts in other industries-including banks, according to CUES' 2003...

'Commemoration, Not Celebration': Event Marks The Fifth Anniversary Of HR 1151.
July 14, 2003... CUNA hosted a luncheon last week to commemorate the fifth anniversary of The Credit Union Membership Access Act (HR 1151). The lunch, to which approximately 50 credit union and congressional dignitaries were invited, was held at Credit Union...

Bitter 18-Month Labor Dispute Ends At Indiana CU.(Madison County Federal Credit Union)
July 14, 2003... Members of the Office and Professional Employees Union, Local 1 voted overwhelmingly to ratify a new contract proposal from Madison County FCU and end a bitter 18-month bargaining process. The three-year pact will roll back the health...

Attention All CUs!: Time To Sign Up For Day in the Life 2003.
July 14, 2003... Attention readers: The Credit Union Journal is now accepting volunteers to participate in its Day in the Life of Credit Unions 2003 Project. This year's project will be the seventh year credit unions from around the world have participated....

ON DEADLINE.(regulatory relief package; Washington's Credit Union to covert to bank)(Brief Article)
July 14, 2003... House Committee Passes Reg Relief Bill WASHINGTON-The House Judiciary Committee voted last week to endorse the credit union-backed regulatory relief package, sending the measure on for a vote by the full House. The bill includes more than...

Hispanic Doesn't Mean 'Poor,' Stress CUs Serving Group.
July 14, 2003... Are "Hispanic" and "low-income" synonymous? No, stressed a number of people addressing a Partnering And Leadership Successes (PALS) workshop initiated by NCUA Board Member Debbie Matz here. "The misconception that the Hispanic market...

Utah Bankers Indicate They Plan To Pursue Court Action.
July 14, 2003... Utah bankers and the American Bankers Association may take the latest round of a long-running battle against credit unions to court. For years Utah banks have bristled as credit unions have gained market share while maintaining their...

Survey: Increase In Online Card Management.(Brief Article)
July 14, 2003... Most adult credit cardholders with Internet access now use the Web to manage their accounts despite continuing concerns about fraud and loss of privacy, according to an Online Consumer Credit Card Survey commissioned by TSYS. Among the...

A Harmonic Convergence On Rates.(interest rates, savings rates)(Brief Article)
July 14, 2003... For what is believed to be the first time, short-term interest rates paid on overnight funds fell to just 1% at the end of June, converging with average savings rates for credit unions, which hit the 1% mark on the same day. The Federal...

Worth Noting.(industry briefs)(Brief Article)
July 14, 2003... Penn. CUs Aid Kenyan Cause HARRISBURG, Penn.-The Pennsylvania Credit Union Foundation has made a $5,000 grant to Strathmore College, Nairobi, Kenya. "The funds will be used by Strathmore to teach WOCCU's PEARLS program," said Chairman John...

One Employee's 'Good Service' Can Be Another's Idea of Bad.
July 14, 2003... "Always escort. Never point." "Always hang up the phone only after the member hangs up first." "We will answer all calls within two rings." These are examples of service standards that three different financial institutions have used...

A Legislation Commemoration: CUNA hosted a luncheon last week at Credit Union House to commemorate the fifth anniversary of the passage of The Credit Union Membership Access Act.
July 14, 2003... Credit union and congressional dignitaries gathered in Washington last week for a CUNA- hosted event at Credit Union House marking the fifth anniversary of the passage of The Credit Union Membership Access Act (HR 1151). While the passage...

The ABC's of Pleasing Members Are 'ETDBW'.(Easy to Do Business With)
July 14, 2003... It's not interest rates that drive your members elsewhere for car loans or mortgages. Instead, it's the difficulty-or sometimes perceived difficulty-members experience when they work with you, according to two CUNA Mutual Group lending...

'Take Economic News With Grain of Salt,' Experts Say.
July 14, 2003... The economy was never as bad as it seemed and will continue to recover quite nicely-if only the media will let it, according to two experts. "There's no Iraqi war and no O.J. trial, so the media will focus on the economy, and they'll...

Other Discoveries: Notes from CUNA Mutual's Disovery Conference.(Credit Union National Association)
July 14, 2003... The CU Balance Sheet: Nemo Vs. The Hulk BOCA RATON, Fla.-"January 2001 was the last time common sense made sense," according to CUNA Mutual Group Financial Consultant Tim Gardner. As Gardner told CUNA Mutual's Discovery Conference, "You...

The CUJ Daily.(briefs)
July 14, 2003... Calif. Privacy Bill Goes Down Again SACRAMENTO, Calif.-A tough "opt-in" privacy bill which would have required credit unions and others to obtain customers permission before sharing their confidential information was defeated a second time...

Veteran Member Business Lenders Share Lessons Learned.
July 14, 2003... Credit unions considering entering member business lending or other business services got some advice from veterans of the arena. California-based Telesis Credit Union reluctantly got into member business services about 11 years ago when...

CUs To CUNA Mutual: 'Help Improve The Experience'.(Credit Union National Association)(Brief Article)
July 14, 2003... The CUNA Mutual Group Owners' Advisory Council (OAC) weighed in on what credit unions are expecting from the company. The OAC met prior to CUNA Mutual's Discovery Conference here. The group is chaired by Tony Mook, president/CEO of CUMORAH...

Product & Service.(briefs)
July 14, 2003... 300 Attend CUDL Conference RANCHO CUCAMONGA, Calif.-During its fifth annual Auto Lending Symposium, Credit Union Direct Lending (CUDL) honored five credit unions for overall indirect lending practices in the areas of dealer relations,...

Collection Firms See Card Debt As Fastest Growing Piece Of Business.
July 14, 2003... Unpaid credit card bills remain the fastest-growing part of the debt collection industry, and bad checks appear to be losing ground as overall check usage declines, according to a survey conducted by the advisory firm Kaulkin Ginsberg Co. ...

Amendment Still Holding Up Bankruptcy Reform.
July 14, 2003... Like a multi-headed hydra that won't die off easily, the bankruptcy reform bill is still flapping around while its supporters seek to breathe new life into it. Democratic Senate leaders are trying to convince New York Sen. Charles Schumer...

NCUA Vote On Easing MBL Restrictions Delayed.(National Credit Union Administration, member business loans)(Brief Article)
July 14, 2003... It appears that the NCUA board will wait until the fall before they vote on proposals to ease restrictions on member business loans (MBLs). NCUA staffers are still reviewing the more than 370 comment letters submitted on the proposals and...

Rep Proposes Putting All GSEs Under Treasury.(Ed Royce)(Brief Article)
July 14, 2003... A leading lawmaker proposed legislation this week to create a new regulator for the government sponsored enterprises, Freddie Mac and Fannie Mae, as well as the Federal Home Loan Bank System, under the U.S. Treasury Department. The proposal,...

People.(appointments, various companies)
July 14, 2003... Golden 1 Credit Union, Sacramento, Calif., announced that United Way recognized Community Relations Officer Esther Klein as employee campaign coordinator of the year, and SVP of Marketing Dave Thompson received the distinguished community...

Edwards Named New CEO At XP Systems; Co. To Continue Focus On XP2 System.(John Edwards)(Brief Article)
July 14, 2003... XP Systems has named John Edwards as its new president. Edwards, a 37-year veteran of the company, was previously senior VP-business development. Edwards will replace Roger Kuhns, who is president of XP Systems' parent Fiserv's western...

3 CU Bills Pass In Connecticut.(Brief Article)
July 14, 2003... The Connecticut Credit Union Association said it successfully steered three credit union proposals through the just concluded state legislative session. Among the bills the CCUA supported that were passed were: * SB-888, An Act Concerning...

MasterCard Targets Smaller CUs.(Brief Article)
July 14, 2003... MasterCard International has announced a new turn-key loyalty and rewards program for credit card and debit card issuers it says is targeted at small to medium-sized financial institutions and processors. Called "Preferred Rewards," the...

Community Page.(briefs)
July 14, 2003... CUs Open New Branch Facilities * St. Louis Postal Credit Union held a ribbon cutting ceremony to commence the grand opening of its new Fenton, Mo. office. * Water and Power Community Credit Union opened a new Westchester branch in Los...

ON DEADLINE.(briefs)
July 14, 2003... Members To Get Second Chance INDIANAPOLIS-Forum CU has joined four other area financial institutions in a program giving a second chance to people who cannot obtain checking accounts because of past credit problems. Under the program,...

The Cradle of Credit Unions.(Brief Article)
July 21, 2003... Many of those who travel here this week for NAFCU's annual convention will take time to walk the Freedom Trail that traces much early-American history. But what few realize is that their route will take them past sites less well-known-but...

Claiming NCUA Has 'Gone Too Far,' Banks File Lawsuit Over Utah FOM.(National Association of Federal Credit Unions)(Field of Membership )
July 21, 2003... As they have been threatening to do for the past 60 days, the bankers filed suit last week against NCUA for its actions allowing the escape of three credit unions from the Utah tax trap carefully set by the bankers. In an action filed in...

Tax Initiatives Help Swing Pendulum Back To Fed Charter.
July 21, 2003... The dual chartering system appears alive and well. After a seven-year period during which more than 150 credit unions fled from the federal system to state charters, the pendulum appears to have swung back. Last year was the first time...

In This Issue.
July 21, 2003... NEWS * Fiserv Acquires EDS' Credit Union Business Unit Page 3 * Minnesota CU Alters Indirect Lending Program Page 22 * 2 NY CUs Join With Banks In Small Biz Fund Page 22 * Corporate One To Sell Its 'SimpliCD'...

EDS Acquisition Gives Fiserv 34% Share Of CU Market.(Electronic Data Systems)
July 21, 2003... Electronic Data Systems Corp., the once-preeminent credit union servicer, said it is ending its long-time relationship with the credit union movement with an agreement to sell its CU Industry Group to Fiserv. The group, which provides data...

Co. Plans Big Inroads In Indirect Lending.(Aimbridge Group)
July 21, 2003... Look out CUDL, here comes the Aimbridge Group. In direct competition with CU Direct Lending, The Aimbridge Group plans to take its indirect lending nationwide. Aimbridge, formerly known as Bentley Networks, said last week it has...

Attention All CUs! Time To Sign Up For Day in the Life 2003.
July 21, 2003... The Credit Union Journal is now accepting volunteers to participate in its Day in the Life of Credit Unions 2003 Project. All participants shoot photos of everyday events at their CU on the same day in August. The Journal then selects photos...

ON DEADLINE.
July 21, 2003... Calif. League Says It's Studying Potential Privacy Ballot Initiative SACRAMENTO, Calif.-The California Credit Union League is analyzing a privacy initiative that reportedly is well on the way to qualifying for the March 2004 statewide...

Squeezing A Hundred Years Of Change Into Just Five.
July 21, 2003... Steve LaTourette was a relatively unknown congressman who knew little about issues facing credit unions until getting a surprise call from then-House Speaker Newt Gingrich. Six months into his new job as CEO, Dan Mica was trying to shovel CUNA...

The Happy Home (Lender): New Software Has Reduced The Tedium For One Credit Union.(Brief Article)
July 21, 2003... The loan production process has become decidedly more agreeable for Robin Nelson, assistant vice president of real estate at Travis Credit Union. Until 2000, the $1-billion CU filed annual Home Mortgage Disclosure Act (HMDA) reports by...

The 2003 Credit Union Journal Technology Panel.
July 21, 2003... The following are members of The Credit Union Journal's Technology Panel. They are all given the opportunity to participate in responding to reader questions, in addition to providing input to The Journal on our technology coverage. John...

Technology News.(Brief Article)
July 21, 2003... Charter Oak FCU Rolls Out Spanish Website WALLINGFORD, Conn.- Charter Oak FCU has launched a Spanish language link from its website at www.charteroak.org. The credit union reported that during its first month the pages were viewed...

Mass. CU Touts Relationship With Member-Owned Firm.(Brockton Credit Union)
July 21, 2003... Brockton Credit Union says it has what every credit union wants in a vendor relationship: an outsourcer that is at once understanding and flexible. "Our relationship with Connecticut On-Line Computer Center has been successful for two...

FCCU Finds The Good Word In Speech Recognition.(Financial Center Credit Union)
July 21, 2003... New members are experiencing easier-and faster-phone-based banking, thanks to speech-recognition technology launched in January at Financial Center CU. Speech recognition is "not such a chore to learn for new members," as compared with...

Technology News.
July 21, 2003... Half Move To OpenXChange WALLINGFORD, Conn.-Constitution Corporate Credit Union said that it and more than half of its membership have gone live with a new front-end account management system called OpenXchange. OpenXchange was developed...

Most Valuable Callers Given Phone Priority.
July 21, 2003... Atlantic Credit Union's "most valuable" callers are now pushed directly to the CU's most skilled and knowledgeable call center representatives via caller identity technology, "We're making sure that the most valuable of our members...

Study: Debit Users Want Rewards, Aren't Getting Them.
July 21, 2003... Few debit card users report having any rewards associated with their debit card, according to a recent research study by SYNERGISTICS RESEARCH CORP. Debit card users in the survey were asked to identify which, if any, of a number of...

'Be AFRAID Be Very AFRAID ': One CU Security Administrator Says She's Grown Tired Of Vendor Pitches Built Around Fear.
July 21, 2003... Fear sells. That's what many information security (IS) technology sales representatives are counting on-and it's time for them to stop, according to Thelma Snedaker, security administrator for $4-billion United Airlines Employees' Credit...

Report: $67M In Visa Debit Losses During 6 Months.(Brief Article)
July 21, 2003... More than $67-million in losses were suffered by Visa Debit card issuers during the first half of 2002, according to new analsysis released by ATM & Debit News. That amount, said the publication, is 36.7% more than in the first half of 2001....

More Turning To The Web To Manage Card Accounts.(Brief Article)
July 21, 2003... Most adult credit cardholders with Internet access now use the web to manage their accounts despite continuing concerns about fraud and loss of privacy, according to an Online Consumer Credit Card Survey commissioned by TSYS. Among the...

Visa, MasterCard Say No Way To Know To Whom Refunds Are To Be Given.
July 21, 2003... In the latest round of an ongoing lawsuit over fees charged for credit card purchases made overseas, Visa and MasterCard have told the California judge who told them to refund the fees that they cannot because they haven't retained enough...