Credit Union Journal articles from June 2003

Credit Union Journal archives from June 2003

In Third Such Incident, Employee & Her Three Children Are Abducted As Part of CU Robbery.
June 2, 2003... An employee of the $20-million Whitehall Credit Union and her family-including three children ages 2, 4 and 6-were abducted at gunpoint from their home and then taken to the CU, where the employee was forced to give the perpetrators an...

Hard Lesson Learned About Hard Drives: One CU Adopts New Security Procedures.(Power Federal Credit Union)
June 2, 2003... Following the discovery that member data was still recoverable on a recycled hard drive, Power FCU has implemented a variety of protocols to beef up the security of its members' privacy As reported in the May 26 Credit Union Journal, the...

Deposit Rate Cuts Help Support ROA During 1st Quarter.(return-on-average assets)
June 2, 2003... Credit unions continued to report near-record profitability during the first three months of the year in the face of a stagnant economy by slashing their cost of funds-their dividend (savings) rates-to all-time lows, according to NCUA. ...

State Budget Gap In Illinois Leads To Big Fee Increase.
June 2, 2003... A plan to close a $5-billion gap in the state budget being debated by the legislature last week would cost state-chartered credit unions an estimated $1.9 million in increased supervisory fees. The fee hike, amounting to a 50% rise, is...

ON DEADLINE.(industry briefs)
June 2, 2003... NCUA: FCUs Exempt From Predator Laws ALEXANDRIA, Va.-NCUA said that federally chartered credit unions are exempt from a consumer protection statute passed by the Washington D.C., council aimed at battling predatory home lenders. In a...

NCUA OKs Corporates' Request.(corporates permitted to pay market gains)(Brief Article)
June 2, 2003... NCUA's Office of Corporate Credit Unions (OCCU) issued a guidance letter last week that permits corporates to pay market gains upon early redemption of term deposits, according to CUNA and the Association of Corporate CUs (ACCU). ACCU had been...

CUNA, Intelli-Check In Alliance.(Credit Union National Association)(Brief Article)
June 2, 2003... CUNA has formed a strategic alliance with Intelli-Check Inc. to offer the company's ID-Check document verification devices to its affiliated credit unions. "This is a unique product that creates the ability for credit unions to do some...

Senate, House Teams Recognized.
June 2, 2003... Representatives of CUNA and NAFCU visited Capitol Hill last week to present the trophies to two congressional teams that finished with the fastest times in the Credit Union Cherry Blossom 10-Mile Run. Above, "Murray's Milers," made up of...

NY CUs Part of Special Districts.(banking development districts )(Brief Article)
June 2, 2003... A bill that would permit New York's credit unions to participate in banking development districts unanimously passed the state Assembly. The Banking Development District Program provides property tax breaks to institutions that establish...

Deal Would Expand Remittances.(Credit Union National Association, World Council of Credit Unions agreement with Travelex)(Brief Article)
June 2, 2003... CUNA and the World Council of Credit Unions (WOCCU) have entered into an agreement with Travelex to expand money remittance services. The new program will operate under the International Remittance Network (IRnet) name that WOCCU has built, and...

The Lone Star State No Longer Alone: Texas OKs HELCs.(home equity lines of credit)
June 2, 2003... The financial services lobby was able to navigate the turbulence surrounding the unprecedented walk-out of the Democratic caucus in the House to get a bill passed last week that would allow credit unions and banks to join lenders in the 49...

Would You Like Fries With That CU Membership?(Orange County Credit Union promotion)(Brief Article)
June 2, 2003... If you feed them they will come. That motto seemed to be at the heart of a promotion by Orange County's Credit Union here, which reached out to select employee groups (SEGs) by offering a free lunch from popular burger chain In-N-Out. The lunch...

Survey Finds Online Members Don't Look To CU For Info.
June 2, 2003... More than 70% of online credit union members report using online information sources to research purchasing and financing automobiles. But only half said they thought of the credit union website as the first source of such information,...

Worth Noting.(industry briefs)
June 2, 2003... CUNA Councils Publish 2 Papers MADISON, Wis.-Two of the CUNA Councils are offering new white papers. "Branch Evolution: Automation, Self- Service Strategies, Cross-Selling, and More," authored by Darla Dernovsek,is being made available by...

A Different Spin On Help Wanted Ads: Helping Yourself.(Jeff York markets himself with "position wanted" ad)
June 2, 2003... Your credit union is likely accustomed to advertising for help, but what about you? If you were interested in a CEO's job or, if you're already a CEO and are interested in managing a larger operation, would you consider advertising yourself?...

For 1 CEO, Trip Back To High School Not A Reunion.(credit union volunteers teach financial management to students)
June 2, 2003... Southeast Oakland Community Credit Union's Steven J. Scherr stood in front of a high school class and said, "Let's talk about saving money today." There were a few chuckles as one student blurted out, "I don't have that skill. I get paid...

Texas League's People Builders Includes A 'Meeting In A Box'.
June 2, 2003... Don't expect Jack to pop out of these boxes. Quite frankly, there's no room considering the meetings taking place inside. Go ahead, climb in. Better yet, let them out so you can share the information with your employees. TCUL People...

Liberty Reports CU Demand For Biz Checking.(Brief Article)
June 2, 2003... Liberty has expanded its line of business check offerings in response to what the company said was demand from credit unions for more options to offer members who run their own businesses or prefer business-style products for their personal...

Product & Service.
June 2, 2003... WesCorp RUDE Tops $500M SAN DIMAS, Calif.-The $23-billion WesCorp is reporting that reserves and undivided earnings (RUDE) recently topped the $500-million threshold. The corporate said the amount is significant because WesCorp pays the...

Survey Finds Growing Interest In Debit At Checks' Expense.
June 2, 2003... A survey of more than 11,000 consumers has found growing interest in making small-value purchases via debit card. The survey, sponsored by Star Systems, Inc., revealed that the most popular type of small value (under $25) debit purchase...

ATM-Users Say They Would Welcome Biometric Efforts.(Brief Article)
June 2, 2003... A majority of regular ATM users say they believe the usage of biometric identification at the machines would be a welcome improvement over the current PIN-based ID method. Most popular among those surveyed: Handprint or fingerprint scans....

AmeriCU Cites Benefits Of Direct Check Ordering.(Brief Article)
June 2, 2003... Since moving to a program in which its members work directly with Deluxe to select check designs, AmeriCU here said it has been able to directly measure results related to the check program management. The credit union has adopted...

Product & Service.(industry briefs)
June 2, 2003... United Nations FCU Joins CO-OP NEW YORK-The $1.7-billion United Nations Federal Credit Union (UNFCU) has joined the CO-OP Network, which will offer its members access to 17,000 surcharge-free ATMs across the United States and Canada as...

Senate Move On Reg Relief Should Be A Good Sign.(regulatory relief bill )
June 2, 2003... The Senate signaled its intentions last week to begin the process of crafting a regulatory relief bill with a solicitation to NCUA and the banking regulators for their recommendations on what should be included in such a package. This is a...

Deductibility of Mortgage Insurance Is Dropped.(Brief Article)
June 2, 2003... A provision that would have made mortgage insurance premiums tax deductible was eliminated in the last hours from the congressional tax bill quickly signed into law by the President over the Memorial Day holiday. The provision would have cost...

Supreme Court Deals Blow To ATM Surcharge Bans.(Brief Article)
June 2, 2003... Local bans on ATM surcharges suffered what appears to be a fatal blow last week when the U.S. Supreme Court refused to hear an appeal of two lower court decisions repealing the bans. San Francisco and Santa Monica, Calif., in 1999 passed...

People.(employee appointments and awards, various companies)
June 2, 2003... Kitsap Community Federal Credit Union, Bremerton, Wash., named Leslie Mossbarger employee of the quarter. Central Florida Educators' Federal Credit Union, Orlando, Fla., named Gale Hall employee of the month of January, and Scott Warner...

Revolving Door Swings At Senate CU.(manager Ron Thomas resigns; industry briefs)
June 2, 2003... The turmoil continued at U.S. Senate FCU, with the new manager Ron Thomas walking out after just three weeks on the job, setting the stage for the credit union's fourth manager in the past three years. Thomas, who ran Polish & Slavic FCU...

Reading The Cards: Many Institutions That Issue Debit Cards Are Chafing At Lawsuit Settlement By Visa, MasterCard.
June 2, 2003... Though Visa U.S.A. and MasterCard have tried to depict their decisions to settle in the Wal-Mart lawsuit as having bank members' support, there are signs that many-particuarly those that issue debit cards only-are chafing about the terms as...

Study of New Americans Suggests CUs Segment Market In Order To Capture It.
June 2, 2003... The more than 33-million immigrants who are classified as "New Americans" are having as much of an effect on their financial institutions as their financial institutions can have on them, according to a new study. "The impact of immigrants...

Community Page.(industry briefs)
June 2, 2003... TruWest Attends Country Festival SCOTTSDALE, Ariz.-TruWest Credit Union had a booth at the Country Thunder-USA festival, where it signed up new members from the 150,000 people who attended the four day concert. In additional news, the...

Next Test In Hispanic Market: The PR Game.
June 2, 2003... Credit unions have made major contributions in reaching out to the Hispanic market, but more progress can be made, particularly in getting the same amount of public recognition as banking giants such as Bank of America and Wells Fargo Bank, a...

Missouri CU Assn. To Rebate $260,000.(Brief Article)
June 2, 2003... The Missouri Credit Union Association is rebating to its member credit unions $260,000 for their use of fee-supported services in 2002. The amount is $85,000 more than the patronage rebate MCUA provided in 2001. The rebate stems from what the...

League President, Bank Rep Square Off In SC.(John Franklin, Keith Leggett debate)
June 2, 2003... A credit union executive and an economist for a bank group squared off in a debate here. John Franklin, president of the South Carolina league, debated Keith Leggett, chief economist for the American Bankers Association (ABA) during the...

New York's CUs Meet With 60 Legislators.(Brief Article)
June 2, 2003... Representatives of New York's credit unions visited 60 Senate and Assembly offices at the statehouse as part of a state "Hike the Hill" effort. "Unless we're educating our legislators we're always going to be fighting an uphill battle," said...

Sentence Still Not Handed Down.(Bernard Gurr case)(Brief Article)
June 2, 2003... In one of the strangest cases in NCUA history the former manager of American Samoa Government Employees FCU has been languishing in a minimum security prison in suburban Virgina more than two years after his conviction of plundering the...

Corrections & Clarifications.(Correction Notice)
June 2, 2003... * In the May 12 issue, the name of Aurum Technology appeared incorrectly in a headline. In addition, Scott Sommer was misidentified. He is the president of Cornerstone Advisors. Paul Bourke is the president of Aurum Technology. * In the...

CUs Back Expanded MBL Powers; Banks See Soundness Risks.(member business loans)
June 9, 2003... Credit unions are almost unanimous in their support of NCUA's efforts to ease its member business loan rules, with several credit unions urging NCUA to go even further to facilitate business lending. "By empowering credit unions to be a...

In Toronto, SARS Forces Review of Plans: Business Continuity Plans Dusted Off To Deal With Effects.
June 9, 2003... While some 1,500 people here were reportedly still in quarantine in their homes late last week after being exposed to severe acute respiratory syndrome (SARS), some credit union leaders are relaxing a bit over an illness that has had the city...

Return of Gulf War Vets Being Felt In Va.
June 9, 2003... Credit unions in this market, which have been flooded with new savings the past six months, were preparing for a different kind of deluge last week after the return of more than 16,000 fighting men and women on warships from Iraq. The...

What To Do About Abduction/Robberies?: Third Incident Involving A CU Raises Questions About What Can Be Done.
June 9, 2003... For the third time in 18 months, a credit union employee and her family have been abducted from their own home as part of a robbery (CU Journal, June 2). The abduction/robbery raises questions about whether there is anything credit unions...

ON DEADLINE.(industry briefs)
June 9, 2003... Tax Man Helps To Slow Inflow Of Deposits MADISON, Wis.-The flood of new savings that has inundated credit unions the past 18 months slowed down in April. Savings grew only .14% (about $1 billion ) in April, the smallest increase this year,...

CU Employee's Children Die In Fire.
June 9, 2003... A fire has killed the two children and mother-in-law of Kathleen Haynes, an employee at Allegheny County (Pa.) U. S. Government Employees FCU. Killed in the fire, attributed to an electrical malfunction, were seven-year-old Rikki Haynes and...

CUNA Urges Changes In Proposal.(Credit Union National Association)(Brief Article)
June 9, 2003... CUNA has sent a letter to NACHA-the Electronic Payments Association saying it supports mandatory arbitration of smaller ACH disputes at the request of one party and supports the usage of one arbitrator for these smaller disputes. For...

Public Deposits Bill To Gov.'s Desk.(Oregon)(Brief Article)
June 9, 2003... Senate Bill 331, which would allow Oregon's credit unions to accept deposits from a variety of public entities, passed the floor of the Oregon House of Representatives with a vote of 51 to 5. The next stop for SB 331 is Gov. Kulongoski's...

Ga. CU Pledges $500K To Effort.(Robins Federal Credit Union pledges funds to keep Robins Air Force Base open)(Brief Article)
June 9, 2003... The $744-million Robins FCU here said it is pledging up to $500,000 to support efforts to keep local Robins Air Force Base open. The base has been included on the list of bases to be closed according to the 21st Century Partnership's base...

Utah CUs Donate $450K To Schools.(Brief Article)
June 9, 2003... Utah's credit unions have donated more than $450,000 during the first quarter to helping schools faced with budget crunches due to slashes in state funding, according to the Utah League of Credit Unions and CUNA. Those funds are not the...

Illinois Legislature OKs Fee Increases For State CUs, Banks.
June 9, 2003... State lawmakers filled a $5-billion budget gap in the final hours of this year's legislature last week with a broad package of tax and fee increases, borrowing and gimmicks, like the sale and leaseback of state properties that will hit credit...

CUNA Wins Suit; New Ads Debut.(Credit Union National Association)
June 9, 2003... A federal judge last week dismissed a trademark infringement lawsuit brought against the Credit Union National Association (CUNA) and its national Branding Campaign by a Kansas banking company. The court ruled at the same time CUNA was...

Man's 'Suicide By Cop' Defense Rejected, Gets 15 Year Sentence.(Paul Wiseman)
June 9, 2003... A man who assaulted San Antonio FCU last year in full commando gear with an arsenal of weapons and who held two tellers hostage during a nine-hour siege was sentenced last week to 15 years in prison. The sentencing came after defense...

Worth Noting.(industry briefs)
June 9, 2003... Lending Award Competition Open MADISON, Wis.-Nominations for the 2003 Credit Union Excellence in Lending Awards are being accepted until July 31. CUNA Mutual Group and the CUNA Lending Council are sponsors of the fourth annual awards. Four...

Thoughts On What's Ahead For The Now-Ubiquitous ATM.
June 9, 2003... Never trust anyone over age 30? If that's the case, dump your ATM card. As noted on page 6 of this issue, the automatic teller machine-an exclusive privilege for only the most trustworthy of bank customers when it was introduced-has just turned...

Mich. CU Creates Brand To Serve Slice Of Members.(MidWest Financial Credit Union changes name to University of Michigan Health System Financial)
June 9, 2003... MidWest Financial Credit Union has announced a new name to better connect with employees of its original sponsor, University of Michigan Health System. But, said Lora Bingham, MFCU marketing assistant, it plans to keep the old one as...

From Guy Waiting In Line To ATM's 30th Bday.
June 9, 2003... The automatic teller machine (ATM) has just turned 30. On June 4, 1973, a trio of inventors-Don Wetzel, Tom Barnes and George Chastain-were granted a patent on the machine, the idea for which is largely credited to Wetzel even though there...

Blount New FCUL Chair.(Greg Blount elected chairman of Florida Credit Union League)(Brief Article)
June 9, 2003... Greg Blount, President of Tropical Financial Credit Union, Miami, has been selected as the new chairman of the Florida Credit Union League. Also elected to the board: John Hirabayashi, president of Education Community Credit Union,...

Product & Service.(industry briefs)
June 9, 2003... Newsletter Evaluation Tool Debuts LAKEWOOD, N.J.-A new tool to help credit unions evaluate their own newsletters in 10 easy steps has just been released by CUVA. Posted on www.cunewsletterreference.com, credit unions can get this resource...

Member Demand Leads Wash. CU To Create Biz Services Unit.(Harborstone Credit Union)
June 9, 2003... Harborstone Credit Union is preparing to join the ranks of credit unions offering member business services following research indicating its membership and local businesses wanted these services. Harborstone-a community credit union whose...

FDIC: Most Common Complaint About Credit Cards.(Brief Article)
June 9, 2003... The Federal Deposit Insurance Corp. got more than 8,000 consumer complaints about banks last year, according to the agency's annual report. The report, which was mailed last week, said 3,987 complaints concerned state-chartered, non-member...

SELCO Raises Hood On New Auto Brokerage.(SELCO Credit Union launches SELCO Auto Resource)(Brief Article)
June 9, 2003... The $500-million SELCO Credit Union launched an auto brokerage it calls SELCO Auto Resource. In its first week, it delivered five vehicles to local SELCO members at what the credit union described as "significant cost and time savings." ...

Product & Service.(industry briefs)(Brief Article)
June 9, 2003... DEI Building Number of Facilities CINCINNATI-Dei, Inc., has been signed by a number of credit unions for facilities-related projects. The Hookset, N.H.-based Heritage Family CU signed DEI to build its new two-story, 7,290-square-foot...

Careers In CUs, Financial Literacy Discussed In Cal.
June 9, 2003... California credit union leaders met with Southern California Regional Occupational Program instructors for the second consecutive year to discuss careers in credit unions, the importance of educating students in financial literacy, and to...

In Montana, Optimism Financial Ed To Be Added.(Brief Article)
June 9, 2003... During the Montana Board of Public Education's meeting here, credit union representatives and the Extension Service pressed for inclusion of mandatory financial education to state standards curriculums. Montana CU Network Senior VP &...

Regulators Get Out The Shears For Photo Opp, But...(regulatory relief initiative)
June 9, 2003... It was a surreal scene here last week- one of the made-for-public-consumption photo opportunities that politicians and government entities revel in. That was the gathering of representatives from the four banking agencies-the Federal...

Dollar Backs Risk-Based Capital Proposal For CUs.(NCUA Chairman Dennis Dollar )
June 9, 2003... Now that he's cleaned his plate of some unfinished business at NCUA, namely the latest round of field of membership (FOM) rules updates, the foreign branching and natural-person credit union investment rules amendments, NCUA Chairman Dennis...

NCUA Says FCUs Exempt From 'Predator' Statutes.(Brief Article)
June 9, 2003... NCUA said that federally chartered credit unions are exempt from a consumer protection statute passed by the Washington D.C., council aimed at battling predatory home lenders. In a legal opinion letter issued to the D.C. CU League, NCUA said...

People.(appointments, various companies)
June 9, 2003... The Delaware Credit Union League, New Castle, Del., elected to its board: Jim Everhart, chair; Joel Romainne, vice chair; Cheryl Chilcutt, treasurer; Kate Toner, secretary; Michael Whaley, Charles Miller, and Betty Sartin. Beatrice A. Conrad...

Harland Acquires Premier Systems.(Brief Article)
June 9, 2003... Harland Financial Solutions, Inc. has acquired Premier Systems Inc. (PSI), the West Des Moines, Iowa- based data processing solutions provider for 229 credit unions that is owned by the Iowa Credit Union League. Harland paid the league $16...

The CUJ Daily.
June 9, 2003... Gov. Davis Supports 'Opt-In' Privacy Bill SACRAMENTO, Calif.-Gov. Gray Davis, in an effort to stave off a voter referendum, issued his support for a tough "opt-in" privacy bill making its way through the state assembly. "Californians...

Community Page.(industry briefs)
June 9, 2003... CU Chapter Supports Jessica Lynch Weirton, W.V.-The Weirton/Wellsburg Chapter of the West Virginia CU League honored former POW Jessica Lynch on her 20th birthday with a $1,000 check, a two-night stay at the Charleston Marriott, a $500 gift...

American Express Testing Card Similar To SpeedPass.
June 9, 2003... American Express Co., which became the first U.S. smart card issuer with its 1999 unveiling of Blue, is developing a smart card product that uses radio frequency signals to transmit information to special point of sale terminals. ...

Big Card Issuer Citigroup Plans To Cut Teasers.(Brief Article)
June 9, 2003... Citigroup Inc.'s future credit card solicitations will feature fewer teaser rates. Steven J. Freiberg, the chief executive officer of the world's largest credit card issuer, told analysts at a global consumer business presentation in New...

Corrections & Clarifiations.(Brief Article)
June 9, 2003... A May 26 story incorrectly stated CUNA Mutual Group continues to donate its computer equipment to charity. The company ended that practice several years ago, at the same time it stopped selling its old equipment to its employees. Copyright...

Executive Upheaval At Freddie Mac Roils Mortgage Markets.
June 16, 2003... A boardroom shake-up at Freddie Mac last week that claimed the three top executives at the secondary mortgage market giant shook the financial markets and left Congress struggling to look anew at tightening oversight of the government...

Competitors Want Fannie, Freddie Out Of Their Business.(FM Policy Focus)
June 16, 2003... At least one group was cheering last week's turmoil at Freddie Mac, bringing new scrutiny to the practices of the secondary mortgage market giant. The self-styled FM Policy Focus, formerly called FM Watch, has been lobbying Congress for...

Toronto CU Finds Itself On SARS Frontline, Steps Up To The Plate When Others Ran.(Sunnybrook CU)
June 16, 2003... When others refused to enter the hospital treating patients with Severe Acute Respiratory Syndrome (SARS), one credit union not only continued to operate inside the hospital but even brought in additional staff to help out and offered to...

21 Ideas Strategies & Attention-Getters.(Industry Overview)
June 16, 2003... Looking for a good idea? How about 21 of them! Credit unions continue to demonstrate that budgets that pale in comparison to those of the banking industry are no hindrance to good, creative thinking. Indeed, it may well be that the lack of...

ON DEADLINE.(Brief Article)
June 16, 2003... Proposal To Expand CU Services Is Unveiled WASHINGTON-A bill that was slated for introduction last week would allow federal credit unions to provide international money transfers to anyone. The proposal, similar to one in the pending...

E*Trade Expands Into Lending.(Brief Article)
June 16, 2003... Online broker E*Trade Inc., which has been expanding into the lending business, said it will begin offering portable mortgages that borrowers can retain with today's low rates when they move into a new home. The new program will allow...

N.J. In A League Of Its Own.(New Jersey Credit Union League. )(Brief Article)
June 16, 2003... The CU Affiliates of New Jersey is believed to be the first state credit union trade association to change its name-- back to "league." The board of the state group voted Saturday to return to its roots and once again become the New Jersey...

NCUA's Development Loans Slow.(Brief Article)
June 16, 2003... NCUA said it made one loan form its Community Development Revolving Loan Fund in May and has made just two loans from the fund through the first five months of the year as a surplus of liquidity continues to flood the credit union system. In...

Bay State CUs Get CRA Credits.(Brief Article)
June 16, 2003... State-chartered credit unions and banks may get the Massachusetts Community Reinvestment Act Credit by participating in the FDIC's "Money Smart" financial literacy program, according to the state Commissioner of Banks. The FDIC program...

Paper Check Use Is Falling.
June 16, 2003... The Federal Reserve, which processes the vast majority of checks in the country, said the number of paper checks it processed last year declined for the third year in a row. The Fed said it processed 16.6 billion checks in 2002, down 1.9%...

SW Corporate Joins Endpoint.(Brief Article)
June 16, 2003... Southwest Corporate FCU said it has joined Endpoint Exchange Network, a unit of Clear Check LLC, which will provide more than 500 of its member credit unions with the ability to exchange electronic images of checks with other financial...

Gang Suspected In 2 CU Heists.(Tucson Healthcare Affiliates CU )(Brief Article)
June 16, 2003... Six people from Los Angeles were arrested in connection with a recent armed robbery at Tucson Healthcare Affiliates CU, and are suspected in April's hold-up at Pyramid FCU. The six were arrested with stolen cash on them at Extended Stay...