Credit Union Journal articles from March 2003

Credit Union Journal archives from March 2003

Proposals To Tax State Charters Expand Into Three More States.
March 3, 2003... Tax proposals for state-chartered credit unions are falling like snow in several states, while the Utah tax bill was turning into a full-blown blizzard. New tax bills were emerging in New Mexico, California and Iowa, just as the Utah bill...

Thousands At GAC Told State Situations Are 'Code Red'.(Governmental Affairs Conference)(Brief Article)
March 3, 2003... Some 3,000 people braved bad weather to attend CUNA's Governmental Affairs Conference last week, where they heard from pundits, politicians and peers. While a half-dozen members of Congress lauded credit unions and offered reassurances...

Dollar Calls On Congress To OK Risk-Based Capital.(National Credit Union Administration Chairman Dennis Dollar)
March 3, 2003... NCUA Chairman Dennis Dollar, reacting to growing concerns about new net capital requirements for credit unions, suggested last week that Congress allow credit unions to adopt a risk-based capital system, like the ones allowed for banks and...

Ariz. Bill Would OK Quick Expansions.
March 3, 2003... While a number of state legislatures are considering imposing new taxes on credit unions, Arizona is looking at a regulatory relief bill that would allow CU boards to determine new additions to their fields of membership without having to...

Study Eyes Penetration Among Poor.(Credit Union National Association)
March 3, 2003... During CUNA's GAC in 2002, The Credit Union Journal posed the question on its front page: How many of those eligible to join a credit union in newly added underserved areas are actually joining? No one knew. One year later, CUNA is back...

ON DEADLINE.(Coventry Credit Union raises funds for fire prevention; Postal Community Credit Union ruling)(Brief Article)
March 3, 2003... In Wake Of Blaze, R.I. CU Backs Prevention COVENTRY, R.I.-Coventry CU is helping to raise money for the local Red Cross' fire prevention program in the wake of the nightclub fire that killed 97 people here. The 29,000-member CU wanted to...

NCUA Likely To OK Proposals To Boost Member Biz Loans.(National Credit Union Administration)
March 3, 2003... NCUA is expected to propose several amendments later this month to its member business loan (MBL) rules aimed at encouraging more business lending by credit unions. NCUA board member JoAnn Johnson, who has been heading an agency task...

CUNA Piloting Program To Assist CUs In Accessing SBA.(Credit Union National Association, Small Business Administration)
March 3, 2003... CUNA unveiled a new program last week that will allow credit unions of all sizes to access the U.S. Small Business Administration's guaranteed loan program through an SBA-certified lender. The pilot program aims to take advantage of the...

Lease On Old Headquarters Helps Push CUNA's Losses To $2M.(Credit Union National Association)
March 3, 2003... CUNA said it is waiting for resolution of a couple of accounting issues before reporting a loss of as much as $2 million for fiscal 2002, the group's second loss in a row, and fourth in the last seven years. The main cause of last year's...

Worth Noting.(industry briefs)(Correction Notice)
March 3, 2003... Companies Donate To NCUF WASHINGTON, D.C.-CUNA Mutual Group and Liberty both donated $100,00 a piece to the National Credit Union Foundation Sunday, just prior to the foundation's 2003 Herb Wegner Memorial Awards Dinner held in conjunction...

It's Time For Federal Credit Unions To Return The Favor.(and support state-chartered credit unions)
March 3, 2003... It's payback time for federal credit unions. During last week's CUNA Governmental Affairs Conference (GAC), the meeting fell on the five-year anniversary of the Supreme Court decision upholding a lower court's ruling against NCUA and...

USA Federal Significantly Expanding Training Efforts.
March 3, 2003... In late 2001, the managers at USA Federal Credit Union took a look at its 250 employees spread across 23 far-flung branches in the United States, Japan, Korea and Guam, and concluded they needed some assistance to be able to better serve its...

Congressmen Vie To Establish Subprime Lending Rules.(Bob Ney )
March 3, 2003... Rep. Bob Ney plans to introduce a bill that would set national standards for subprime lending and would preempt the city and state laws that lenders oppose. "I'm all for states' rights, but this is a national issue," the Ohio Republican...

Product & Service.(industry briefs)
March 3, 2003... InfiCorp Buys FPCU Portfolio ATLANTA-InfiCorp Holdings Inc. has purchased the $31-million credit card portfolio from the $550-million Financial Partners Credit Union. As part of the sale the two parties have entered into a long-term...

After 28 Years, Veteran CEO Retires With Thoughts On What's Ahead.(Ray Burnett of Mid-Minnesota Credit Union)
March 3, 2003... From the day he set foot inside Mid-Minnesota Credit Union 28 years ago to the day he retired in December 2002, Ray Burnett has been a leader, an innovator, a guru even. Besides turning a troubled, small CU with "a lot of bad loans" into a...

Who Is Helping Calif. League Debunk CU Myths? None Other Than Bigfoot, Nessie.
March 3, 2003... A one million dollar advertising campaign designed to dispel "myths" about credit unions while raising awareness kicked off in the greater Los Angeles metropolitan area on Feb. 27. The campaign, which currently features four 60-second...

California League's Radio Spots Feature Mythical Creatures.
March 3, 2003... Alien radio spot transcript HUMAN SCIENTIST: Well, let's hope this works. Clear! (zapping noise) ALIEN VOICE: Greetings, it's me, Roswell, New Mexico's own resident alien. I'm sure you heard about my little crash landing a few years...

New Treasury Sec. Now Asks For Backing For Bush Plan.(Brief Article)
March 3, 2003... New Treasury Secretary John Snow reaffirmed President's Bush's commitment to the credit union tax exemption and discussed how credit unions can help strengthen the nation's battered economy. "With more than 81 million members, credit...

CUNA Chair Jolette Urges CUs To Watch State Battles.(Brief Article)
March 3, 2003... CUNA Chairman Barry Jolette exhorted credit unions to make the most of their time in the nation's capitol to ensure that the banker rhetoric against the CU tax exemption is quashed, though it is clear that the real fight right now is at the...

Good News: You're On Top Bad News: You're The Target.(Brief Article)
March 3, 2003... While credit unions have worked to become a political force to be reckoned with, political analyst Charlie Cook suggested that the toughest thing about getting to the top of anything is staying there, adding "I'm sure the bankers would love...

SBA Administrator Calls On CUs For More Small Loans.(Brief Article)
March 3, 2003... Now that all credit unions can apply for guaranteed loans through the Small Business Administration's program, they are in a position to help the SBA reach its goal of making more "truly small loans" to entrepreneurs, something that will help...

Size Of Crowd Indicates CU Interest In Payday Lending.
March 3, 2003... Is payday lending just a necessary evil? It is necessary, agreed members of a panel discussion during GAC-and it doesn't have to be evil, stressed two credit union representatives. On hand for the session was the CEO of the largest payday...

Allard Reiterates Opposition To Any Credit Union Tax.(Senator Wayne Allard)(Brief Article)
March 3, 2003... Sen. Wayne Allard (R-CO) joined a number of other lawmakers to pledge support for the credit union tax exemption during his speech before CUNA's Governmental Affairs Conference. "Some call for the taxation of credit unions. It became an...

Congressmen Offer Advice On Improving Good Image.(Brief Article)
March 3, 2003... Lawmakers from both sides of the aisle said credit unions enjoy a positive image on Capitol Hill, but said credit unions must continue their education efforts to keep that image healthy. Credit unions' grassroots political efforts have...

Oxley: Bankers Unlikely To Oppose Reg Relief Bill.(Brief Article)
March 3, 2003... The bankers' opposition to regulatory relief legislation based on credit union provisions has apparently melted away this year. Rep. Michael Oxley, chairman of the House Financial Services Committee, told The Credit Union Journal last week...

Matz' PALS Plan Seeks To Aid CUs In Sharing Info.(Brief Article)
March 3, 2003... NCUA Board Member Deborah Matz unveiled her Partnering and Leadership Success (PALS) initiative, which is designed to help credit unions share their experiences in serving the underserved with one another as part of the agency's Access Across...

Struggle To Entice Members To Online Channels Is Worth Effort.
March 3, 2003... Members who use online banking services at their credit unions tend to make the credit union their primary financial institution and have a higher level of profitability than non-online banking users, but CUs are still struggling to get more...

Study Urges Further Deregulation, Beginning With Capital Requirements.
March 3, 2003... A new study suggests credit unions have benefited far less from deregulation than banks and thrifts, and calls for an expansion of credit union powers. Produced by the Filene Research Institute and authored by Professor William E....

Beneath Discussion Of Fed Issues: Talk of the States.(Brief Article)
March 3, 2003... It was hard for attendees of CUNA's annual GAC to pay attention to the congressional leaders who trudged to the podium to address them last week. That's because of all the drama surrounding CU taxation among states (see related story, page 1)....

CUNA Starts Year With Hefty Political Donations.(Brief Article)
March 3, 2003... CUNA made its annual tithe here in January, kicking in the maximum permissible $15,000 contributions to the three major campaign conduits for the Republican and Democratic parties-a $90,000 gift to the two parties. CUNA typically donates...

SEC Fines Two Brokers Involved With Bentley.(Brief Article)
March 3, 2003... The Securities and Exchange Commission said last week it issued fines of $1.4-million and six-month suspensions against two former salesmen for Bentley Financial Services, the defunct Philadelphia CD broker that sold credit unions more than...

CUNA Manages To Top Itself With Another GAC.(Brief Article)
March 3, 2003... What will they do next year to top this? CUNA keeps creating its own tough act to follow with the GAC. This year's conference featured a video presentation from none other than the President George W. Bush, and a funny and provocative video...

PEOPLE.(various appointments)
March 3, 2003... The Credit Union Association of Oregon, Beaverton, Ore., promoted Pamela P. Leavitt to senior vice president of governmental affairs and public relations, Danielle Brown to senior vice president of finance and education, Sallie Sylvester to...

The CUJ Daily.(credit union briefs)
March 3, 2003... Navy FCU To Surcharge Outsiders VIENNA, Va.-Navy FCU, which joined the CO-OP Network last week, said it will begin surcharging non-CO-OP cardholders for the use of its ATMs beginning in May. Brian McDonnell, president of the world's...

Ohio CUs Proceed With Merger, But Only After Objections Are Raised.
March 3, 2003... Chilpaco Employees Credit Union will merge with Meade Employees CU, despite opposition from one board member and Chilpaco members, who said they were not given any opportunities for input. A spokesman for the CU who asked that he not be...

CUs Dodge Tax But Lose Powers In Utah; Iowa Targets Earnings: Study On, Business Loans Off In Compromise.
March 10, 2003... Utah credit unions held the wolf at bay, at least temporarily, when the state legislature agreed last week to table a proposal to tax the state's largest CUs and instead study it for two years before acting. But the high-pitched...

CUs Dodge Tax But Lose Powers In Utah; Iowa Targets Earnings: Six Large CUs Target Of Iowa Legislator's Bill.
March 10, 2003... Taking a page from Utah bankers, the Iowa Bankers Association succeeded in getting lawmakers to introduce a proposal in the state legislature last week that would tax the growth in retained earnings (reserves) by the largest credit unions....

NAFCU Mulls Its Role Amid Attacks At The State Level.(National Association of Federal Credit Unions)(Brief Article)
March 10, 2003... The National Association of Federal Credit Unions (NAFCU) says it is monitoring the situations in several states where taxes have been proposed on state charters, but has no firm plans to act. "If there are ways we can help, then we will...

Immigrants Credit Luck & A CU Loan For Business.(Coastal Federal Credit Union)
March 10, 2003... If you're ever in Raleigh, stop by the Hotpoint Cafe, order a cup of coffee and a foccacia sandwich, and experience one immigrant family's American Dream. It's there in the kitchen where the meals are being prepared, in the dining room...

Private Share Insurer, NAFCU In Stand-Off.(American Share Insurance, National Association of Federal Credit Unions)
March 10, 2003... NAFCU's newly announced and public stance against private share insurance has the largest provider of that insurance flabbergasted at the position and questioning the trade group's motives. In January, the NAFCU board adopted a policy...

Calif. Analysis Labels Banks 'Hypocritical' For Attacks On CUs.(California Credit Union League)
March 10, 2003... The California Credit Union League is calling banks "hypocritical" for seeking to impose taxes on credit unions at the same time the number of untaxed banks is soaring. The league said its research shows the number of banks seeking to...

ON DEADLINE.(industry briefs)
March 10, 2003... Calif. DFI Reduces Fixed Asset Rules SACRAMENTO, Calif.-The state Department of Financial Institutions has reduced the amount of fixed assets state- chartered credit unions may hold in their portfolios as part of a rewrite of the state's...

CU CEO Urges Committee To Pursue Bankruptcy Reform.(Palmetto Trust Federal Credit Union CEO Lucile Beckwith testifies before House Judiciary subcommittee)
March 10, 2003... Credit unions provided the only testimony from a financial institution in hearings on bankruptcy reform before the commercial and administrative law subcommittee of the House Judiciary Committee last week. Lucile Beckwith, president and...

Study Examines Consumer Motivations In Choosing Checking.
March 10, 2003... What drives consumer decision on where to get a checking account? That question is behind a new study from the Filene Research Institute, which finds the chief reason is convenience- but it also finds somewhat different motivations between...

Worth Noting.(industry briefs)
March 10, 2003... Beach Named CUSC CEO ATLANTA-Carroll Beach, the former president of the Colorado CU System, has been named as the new president/CEO of Credit Union Service Corp., operator of the nation's largest shared branching network. Beach replaces...

Why Every Check Should Have CU Message, & More.(Editorial)
March 10, 2003... More thoughts that deserve your pondering: * It's abundantly clear that credit unions have something of a perception problem right now. Sure, membership numbers continue to rise, but ask the average American to describe a credit union and...

Ariz. Legislator Says CUs Must Compromise Or Face Loss Of Tax Exemption.(Robert Blendu)
March 10, 2003... The powerful state senator who stands in the way of a credit union-backed bill that would allow boards to expand their fields of membership without having to apply for approval from the state regulator is raising the specter of CUs losing...

League Frets Over What May Sidetrack FOM Bill.(fields of membership bill in Arizona)(Brief Article)
March 10, 2003... Sometimes in legislatures it can be a completely unrelated issue that throws a bill off track, and that could be the case here for the legislation that would allow CU boards to define their own fields of membership without having to apply for...

A Call For New Thinking And Innovation.(in credit union services)
March 10, 2003... It is time to once again embark on a new age of invention in the credit union movement. It's what the pioneers of this movement would expect. To invent, we must first understand. To understand we must first learn. That which we truly...

The Good News: There Are Ways To Break The Bad News.(credit report problems)
March 10, 2003... Perhaps one of the most difficult functions of being a lender is breaking the news to a member that his or her credit report appears to have problems on it. At best, these can be awkward conversations. At worst, they can be deal breakers....

Program Aims To Help Credit Impaired Improve Status.(Capital Area Michigan Works and Capital Community Credit Union program)
March 10, 2003... Capital Community Credit Union (CapCom) here and Capital Area Michigan Works have teamed up to offer "Earn It Back," a program to help community members with bad credit learn how to manage their money and, in turn, become worthy CU members....

Financial Knowledge Test.(Capital Area Michigan Works and Capital Community Credit Union service)(Brief Article)
March 10, 2003... Capital Community Credit Union (CapCom) here and Capital Area Michigan Works have teamed up to offer "Earn It Back," a program to help community members with bad credit learn how to manage their money and, in turn, become worthy CU members. As...

Study: Consumers Don't Understand About ATMs.(Brief Article)
March 10, 2003... Does a "foreign" ATM mean it's located overseas? Many consumers don't know, according to a new study sponsored by the PULSE EFT Association that examined perceptions related to the cash machines. In a survey of 748 ATM and debit card...

CUNA Promises Unique Meeting With Future Forum.(Credit Union National Association meeting information)(Brief Article)
March 10, 2003... CUNA has announced an overhaul to both the name and content of its annual Symposium. The meeting has been renamed the Future Forum, and "will bring credit unions a more forward-looking conference that makes greater use of interactive sessions...

Product & Service.(industry briefs)
March 10, 2003... Centrix, Ill. League In Agreement ENGLEWOOD, Colo.-Centrix Financial, LLC and the Illinois league's Service Corp. have entered into an agreement to finance auto loans to less creditworthy members. Unique to the situation is that the...

Greetings From Somalia, Ohio: What One CU Is Doing.(Big Bear/Members First Credit Union)
March 10, 2003... It started with a simple sign at the entrance that lists hours of operation. Then, it spread to the onsite ATM. But only about 100 of Big Bear/Members First CU's members-all from Somalia, Africa-can read it. And that's OK with officials...

Product & Service.(International Banking Technologies expands services)
March 10, 2003... IBT Expands Its Offerings ATLANTA-International Banking Technologies (IBT), a retail branch design/build and performance consulting company, has expanded its product and service line to financial institutions by offering a la carte...

Upcoming Meetings & Events.(Calendar)
March 10, 2003... MARCH March 14-15 Utah League Annual Meeting, Salt Lake City Hilton. Hotel: 801-328-2000. For info: Marilyn Pearson, 801-972- 3400. March 14-16 Massachusetts League Spring Volunteer Development Conference, Mohegan Sun,...

As Utah's Banks Criticize CUs, New Competitor Enters.(UBS PaineWebber)
March 10, 2003... Utah's bankers have more than credit unions to worry about as competitors. Joining several of its U.S. investment bank and asset management rivals, a unit of Switzerland's UBS AG has applied to the State of Utah for an industrial loan...

Minnesotans Told: Supportive Track Record No Indicator.(Governmental Affairs Conference)(Brief Article)
March 10, 2003... Representatives of Minnesota's credit unions were given updates from NCUA and CUNA during the recent Governmental Affairs Conference (GAC) here. "You are all our best lobbyists. We can't do this without you," said Karen Ward Kincer,...

Indiana Looks To Tap Deposit Insurance Fund For Revenues.(Brief Article)
March 10, 2003... Indiana bankers are steamed about the state's attempt to use money from a fund for insuring public deposits to help balance its budget. Under a bill passed by the Indiana House of Representatives on Feb. 20, the state, which faces an $850...

Worth Noting.(industry briefs)
March 10, 2003... 50th Anniversary Means 50 Bucks TANNERS CREEK, Ind.-To mark its 50th birthday, I&M Employees FCU here has declared a special dividend of $50, to be paid to all members. The dividend was posted to each member's account during the first...

Bankruptcy Back (Again); Fate Is Unsure (Again).(bankruptcy reform bill)
March 10, 2003... Like the cherry blossoms that decorate the capital city every spring, the bankruptcy reform bill showed its colors last week, only earlier than it had in recent years. For the fourth straight Congress House leaders introduced a bill they...

People.(U.S. credit union industry, executive appointments)
March 10, 2003... AmeriChoice Federal Credit Union, Mechanicsburg, Penn. named Matt Kitting assistant vice president of small business lending, Tom Brenner senior loan officer, and promoted Tom Ha to assistant vice president of information technology, and...

The CUJ Daily.(Credit Unions)
March 10, 2003... Calif. Eyes Tough Creditor Law SACRAMENTO-Credit unions and other lenders could be liable for erroneous information on credit reports under a new bill introduced in the state Assembly. The Truth in Credit Act would require creditors and...

Community Page.
March 10, 2003... SDCU Holds Contest For Charity EVERGREEN PARK, Ill.-South Division Credit Union named Fred Kreil the winner of its essay competition, which resulted in a $275 donation to Habitat for Humanity. In additional news, SDCU donated coats,...

In Utah & Iowa, Many Examine Move To Federal.
March 17, 2003... Just as one Utah credit union immediately began proceedings to convert to federal charter after a bill inimical to state-chartered CUs became law there, credit unions in Iowa say they may also need to convert to federal charter if a bill to...

Bill To Tax Iowa's State Charters Continues March.
March 17, 2003... The bid to tax the state's largest credit unions moved forward last week with the state Senate's Commerce Committee approving the measure and sending it on to the tax-writing Ways and Means Committee. The Commerce Committee vote appeared...

The Keys To The Lock: CUs Find Biggest Weakness In Password Security Isn't Software-Instead, It's Often Employees Themselves.
March 17, 2003... Credit unions want information security, but there's a big problem-people and their passwords. "Most of what I do involves protecting employees against employees," said Kristina Bird, manager of information systems at $127-million...

Credit Union 24 Calls Off Concord Merger.(Brief Article)
March 17, 2003... The board of the Credit Union 24 electronic funds network, one of two surviving major credit union-owned EFT networks, last week called off the planned merger with Concord EFS, the parent of Star Systems network. James Park, president of...

ON DEADLINE.(Brief Article)
March 17, 2003... Bankruptcy Reform Bill Gets Off To Good Start WASHINGTON-The bankruptcy reform bill got off to a solid start last week with the House Judiciary Committee passing the credit union-backed measure and sending it on for a vote by the full...

Union Fails To Oust Manager; Vows To Win Board Seats.(Brief Article)
March 17, 2003... The membership of Madison County FCU failed in its rare bid to force out the credit union manager, whom the union charged with strong-arming the union of this union-sponsored credit union. An initiative that would have directed the board...

January Asset Growth Triple That One Year Earlier.(Brief Article)
March 17, 2003... CU asset growth during Janurary nearly tripled over the same period one year earlier, according to analysis by CUNA. The rocketing asset growth caused credit unions' average loan-to-share ratio to fall from 71.2% in December 2002 to 70.1% in...

CUs Cut Back On Health Insurance Benefits.(Brief Article)
March 17, 2003... The number of CUs paying 100% of employee medical coverage costs has decreased by nearly 17% in the last two years, according to a survey on employee health benefits by D.Hilton Associates. Currently only 18% of credit unions pick up the...

Star One To Sue Texas Regulator Over FOM.(Brief Article)
March 17, 2003... California-based Star One CU, claiming it is being discriminated against because of its out-of-state status, has asked a state court here for a rare review of the Texas CU Department's denial of its field of membership expansion request. Star...

Wise Old Owls Choose Credit Union.(Brief Article)
March 17, 2003... First Peoples Community FCU's branch here had to call the West Virginia Division of Natural Resources after screech owls twice moved into the credit union. After an owl was removed from the branch on a Friday, the state had to be called again...

Worth Noting.(industry briefs)
March 17, 2003... Deadline For Foundation Funds MADISON, Wis.-Credit unions have until April 15 to apply for funds from the National CU Foundation (NCUF) that are available for projects addressing issues it designates as critical to its mission during the...

An Open Letter To The Utah Senate.
March 17, 2003... Note to readers: Stephen Nelson, director of communicatinos with the Utah League of Credit Unions (ULCU), wrote this letter to members of the Utah Senate, which has been debating a bill that would apply a franchise tax to the state's largest...

Are You Sure Your Software Licenses Comply?
March 17, 2003... Most, if not all, credit unions make a concerted effort to remain in compliance with their various licensing agreements. This is an already daunting task which is being made even more so with the help of Microsoft. There has been...

Calling In The CIA: United Airlines ECU Is Using A Broader Approach To Ensure Information Systems Is Effective.(Confidentiality, Integrity, and Availability of data at United Airlines Employees' Credit Union)
March 17, 2003... An intrusion detection/email encryption approach to information security (IS) just doesn't cut it for Thelma Snedaker, information security administrator at $4-billion United Airlines Employees' Credit Union (UAECU). "I've got the...

The 2003 Credit Union Journal Technology Panel.
March 17, 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.(Credit Union Executives Society introduces CUES eVote service; NW Farmers Insurance Group has new website)(Brief Article)
March 17, 2003... CUES Introduces E-Vote MADISON, Wis.-In partnership with Survey Research Associates (SRA), the Credit Union Executives Society has introduced CUES eVote, a web-based board election service available to credit unions. CUES said eVote is...

How 1 $21 Million CU Is Delivering Online Loan Apps.(Health Care Family Credit Union)
March 17, 2003... It doesn't take a billion dollars in assets or a talented tech staff to deliver automated loan processing- including online origination and electronic documents. At least not for Health Care Family Credit Union. The $21.6-million HCFCU...

Pentagon Fed Takes Steps To Reduce Aggregation Errors.(Pentagon Federal Credit Union)
March 17, 2003... The vibrant refinancing market merits servicing technology that delivers data at the loan- level-a far cry from aggregate loan pools generated by Microsoft Excel-type databases, one person here believes. A strong refi market and related...