Credit Union Journal articles from May 2003

Credit Union Journal archives from May 2003

Northwest Airlines, Long-Time Employee CU Sever Ties After Airline Demands Large Fee.(Northwest Airlines ends relations with N.W.A. Federal Credit Union)
May 5, 2003... Perhaps indicative of the financial strains airlines are under, Northwest Airlines startled its long-time credit union by announcing it would sever relations with NWA FCU, after the credit union refused to pay a multi-million-dollar fee the...

Settlements In Debit Card Lawsuit Likely To Mean Decreased Interchange Income.(VISA International and Mastercard International Inc. lawsuits by retail stores)
May 5, 2003... Credit unions likely will see a drop in interchange income as a result of settlements last week in lawsuits against VISA and MasterCard, and some members may run into problems using their VISA- and MasterCard-branded cards, according to two...

CUs Continue To Reach Out To The Troops.(credit unions)
May 5, 2003... As the military operation in the Middle East winds down, credit unions continue to reached out to armed forces personnel in the region. In the case of military personnel deployed as part of the war in Iraq, they were so pleased with the...

Utah Bankers Say They Will Bring Fight To Congress.
May 5, 2003... The Utah bankers, still licking their wounds from the escape of the three largest state credit unions from their tax trap, are chasing their prey all the way to Washington. Representatives from 20 of the state's largest banks, including...

Gonzalez Emerges As Top Candidate For NCUA Post.(National Credit Union Association)
May 5, 2003... A little-known community development banker currently working as a Bush administration appointee has emerged as the leading candidate to succeed NCUA Chairman Dennis Dollar, whose six-year term on the NCUA board expired last month. Gilbert...

ON DEADLINE.(National Credit Union Association)(Brief Article)
May 5, 2003... NCUA OKs First Utah Convert To Fed Charter ALEXANDRIA, Va.-NCUA said last week it approved a federal charter for America First CU, the Utah credit union giant fleeing the state's tax threat. The charter will allow the $2.5- billion credit...

Study Suggests Community Banks Offer Capital Model For CUs.
May 5, 2003... A new study suggests that if credit unions were granted certain regulatory flexibility, they could employ a number of strategies already in use by banks to meet their capital requirements. The study, released by the Filene Research...

UNFCU Expands In Kenya.(United Nations Federal Credit Union)(Brief Article)
May 5, 2003... The $1.7-billion United Nations FCU has opened a new Liaison Office at the UNON Gigiri campus here. UNFCU announced its expansion, as well as a grant to fund a new Multimedia Centre at the United Nations Library in Nairobi, at a...

CU Part of 'Downpayment Plus'.(CEFCU debuts program)(Brief Article)
May 5, 2003... The $2.4-billion CEFCU has launched an affordable housing program it calls "Downpayment Plus." The program provides financial assistance to qualified, low-income homebuyers who need help meeting the downpayment requirements and closing costs...

Dollar Lauds Defense CUs.(Dennis Dollar)
May 5, 2003... Speaking to the 30th Annual European Defense Credit Union Sub-Council Conference here, NCUA Chairman Dennis Dollar commended the defense-oriented credit unions for their "steadfast support and solid member service to the men, women, and...

Worth Noting.(multiple records)(Brief Article)
May 5, 2003... Fund Created For Soldiers Killed EL PASO, Texas-Fort Bliss FCU has set up a fund, the 507th Maintenance Company Fund, for families of nine soldiers killed in Iraq. A local group called the 100 Club originated the fund with a $3,500...

How To Get Your Name In A Headline Just Like This One.(effective public relations at credit unions)
May 5, 2003... Many of you may have read articles in trade publications or local newspapers recently about one of your neighboring credit unions and thought, "How did that credit union get an article in the paper? How can my credit union receive this kind...

Nevada CU's HR Practices Are Recognized For Excellence.
May 5, 2003... A credit union that entered an awards program for human relations practices simply to give itself a "benchmarking tool" ended up with a lot more than that. Nevada Federal Credit Union has been named the second place winner in its category...

CUNA Rep At Biz Loan Meeting.(Michael Hearne)(Brief Article)
May 5, 2003... Michael Hearne, a board member with Lafayette FCU in Maryland who also spent seven years working in SBA's Office of The CFO, was CUNA's representative last week at a roundtable discussion sponsored by the Senate Committee on Small Business and...

What CUs Think Of NCUA Exams.
May 5, 2003... NCUA is reporting that the 397 credit unions responding to its survey on the agency's risk- focused examination program have given it high marks. Implemented in the fall of 2002, the risk-focused exams were given an average score of 4.63...

Product & Service.(mulitple records)
May 5, 2003... Delta Employees Selects CUSC ATLANTA-Credit Union Service Corporation (CUSC) said that Delta Employees Credit Union has become the first credit union to go live on the nation's newest shared branching technology-The Next Generation...

CU's Managment Takes The Message On A Bus Tour.(Summit Credit Union)
May 5, 2003... Seeking to demonstrate its commitment to credit union staff, the senior management team at Summit Credit Union piled into a bus emblazoned with the CU's latest auto loan promotion to take it "on tour" to all the branches. "With 10 branches...

Product & Service.(multiple records)
May 5, 2003... CMG Moves Up In Rankings MADISON, Wis.-Fortune magazine has ranked CUNA Mutual Insurance Society and its subsidiaries 615th overall in its annual list of the top 1,000 American companies based on revenue. Among life and health mutual...

'Testosterone-Based' Thinking & Other Faults In Decision-Making.
May 5, 2003... Many business decisions in America are made hastily, with a reliance on either poor or unreliable data, or, in some cases, gut feelings and intuition, warns Kevin Clancy. Clancy, chairman and CEO of Copernicus Marketing Consulting, gave...

Tips On Improving Bottom Line, Avoiding HR Issues.
May 5, 2003... Credit unions can improve their bottom line and avoid most "people problems" by improving their human resources practices, according to an expert on hiring. Cheryl Mahaffey, president of CM Consults in Playa Del Rey, Calif. and the author...

Compliance Matters: Three Steps To Keep In Mind Related To MBLs, Reg B.(Brief Article)
May 5, 2003... Credit unions doing member business lending need to remember the Regulation B adverse action requirements. Here are three main steps. First, determine whether the loan is for a business, commercial or agricultural purpose. If the loan purpose...

Early Analysis Shows Shares Surged In 1Q.(Brief Article)
May 5, 2003... An early sample of credit union first quarter data shows that the tremendous share growth of the past two years continued in the first three months of 2003. Callahan & Associates said the 607 credit unions that are part of its First Look...

CUNA Marketing Council has announced the winners of its Diamond Awards. The first place winners are listed below; for more info visit www.cuna.org.(Illustration)
May 5, 2003... (part 1 of 2) Category Name Asset Size Annual Reports <100 Annual Reports 101-249 Annual Reports 101-249 Annual Reports ...

Politics Can Be Seen In Views On FOM Decisions.(field of membership)
May 5, 2003... Political considerations are apparently working their way into NCUA board deliberations, at least on the issue of community chartering. It's not the kind of partisan politics that mark so much of what goes on in Washington, but the effects...

People.
May 5, 2003... The Connecticut Credit Union Association, Wallingford, Conn., awarded Henry Gross the cedit union volunteer recognition award, and Diane gallegos the credit union professional recognition award. Empire Corporate FCU, Albany, N.Y.,...

The CUJ Daily.(multiple records)
May 5, 2003... FSCC, Defense CUs Enter Pact SAN DIMAS, Calif.-The shared service center network Financial Service Centers Cooperative, Inc. and the Defense Credit Union Council have signed an agreement to promote shared branching services. "Serving the...

Community Page.
May 5, 2003... RFCU Recognizes Employees WARNER ROBINS, Ga.-Robins Federal Credit Union recognized Gladys Barfield with the Hope Award for volunteering in the most activities, and Christiane Belisle with the Care Award for volunteering the most hours....

Credit Union Responds To Statement Made By Sponsor.(NWA FCU)
May 5, 2003... Just days after posting its initial announcement to members, NWA FCU updated its website to include a point-by-point response to several statements made by the airline in its employee newsletter, Newswire. Below is an abridged version of some...

ON DEADLINE.(various news items)
May 12, 2003... Cal. Senate OKs Bill To Create Low-Income SCU SACRAMENTO, Calif.-The state Senate Banking Committee approved a bill last week that will create a low-income designation for state-chartered credit unions and allow those credit unions to serve...

Trio Of Utah CUs Targeted By Bankers All OK'd To Convert To Federal.
May 12, 2003... In dramatic fashion, NCUA approved within 24 hours of each other the conversions to federal charter for three large Utah credit unions targeted for taxation by the banker-inspired legislation. The NCUA action will allow all three-America...

What Started As A Small Event Has Grown Into A PR Bonanza.
May 12, 2003... Iowa residents looking for used appliances, slightly worn baby clothes, nearly new garden tools or old record albums likely had no trouble finding it in Dubuque the last Saturday in April. For the 10th year running, the $320-million Dupaco...

Despite Interchange Income Loss, Lawsuit Settlement Heralded.
May 12, 2003... ATM, credit and debit card processors and networks said that despite the pending potential reduction in interchange revenue resulting from the recent VISA and MasterCard lawsuit settlements, the fact that the two giant credit card associations...

Tornadoes Strike 6 CUs, Countless Members.
May 12, 2003... Six credit unions here were damaged in storms that spawned a swarm of tornadoes that ripped through the nation's midsection and killed 40 people last week. Credit unions that physically went unscathed, meanwhile, were scrambling to help...

NCUA's New Small CU Working Group Holds Its 1st Meeting.(National Credit Union Administration)
May 12, 2003... Members of the National Credit Union Administration's newly created Small Credit Union Working Group met for the first time last week to discuss some of the issues that need to be addressed. NCUA Board Member Debbie Matz proposed the...

Community CUs' Ad Series Stresses Critical Differences.
May 12, 2003... The National Association of Community Credit Unions (NACCU) has introduced a series of advertising materials that seek to leverage threatening issues in the news while positioning credit unions as a refuge. "Fuzzy Accounting STOPS here....

Worth Noting.(various news items)
May 12, 2003... Ohio League Sponsors Ed Summit DUBLIN, Ohio-The Ohio league sponsored its fourth annual Financial Education Summit last week. At the event, two fourth graders talked about lessons from an economics class and a credit union that runs a...

The Bankers Sure Have A Strange Sense Of 'Priorities'.(Column)
May 12, 2003... The American Bankers Association's government relations "super priorities" for the year rank securing the ability of financial holding companies to broker real estate, and taxing "expansionist" credit unions, above adopting banking policies...

A Message Every John Doe Should Hear.
May 12, 2003... Re: Frank Diekmann's column, "Dear Legislator: Just Wanted To Ask This One Thing" (CU Journal, April 21). What a great article. I have always had an issue with the credit union movement trying to sell the concept of member-owned as a...

Product & Service.(three news items)
May 12, 2003... TNB Acquires 3 More Portfolios DALLAS-Three Arizona credit unions have converted their card processing programs to TNB Card Services. The $54-million Arizona Media Credit Union, Phoenix, converted 3,100 credit card accounts, the...

Some Things To Think About Before Selling Your Card Portfolio.(Column)
May 12, 2003... The number of credit unions opting to sell their credit card portfolios to other-typically larger- financial institutions has risen steadily over the last few years. Of the approximately 157 payment-card portfolios that traded hands in 2002,...

News Briefs: CUNA Mutual Unveils Check Fraud Training Kit.(Brief Article)
May 12, 2003... CUNA Mutual Group has developed an interactive check-fraud training kit exclusively for its credit union bond policyholders. Designed for credit union front-line staff, the kit incorporates an interactive CD-ROM and related support materials to...

Product & Service.(three news items)
May 12, 2003... CUNA Mutual Expands In PR MADISON, Wis.-CUNA Mutual Group subsidiary MEMBERS Financial Services has expanded into Puerto Rico. The move marks the first time CUNA Mutual Group will offer its MEMBERS Financial Services products and...

Fed Planning Follow-Up To Landmark Check Survey.
May 12, 2003... The Federal Reserve Board is gearing up to conduct a fresh survey of the volume of paper checks written annually, a follow-up to the landmark 2001 research that led to the first clear conclusion that check-writing was on the decline. Fed...

Analysis Finds Similar Premium Paid For Small, Large Portfolios.(Brief Article)
May 12, 2003... With many credit unions mulling or moving to sell their card portfolios, new data shows that smaller card portfolio sales can often have transaction premiums as high as large deals. "Historically, only the largest of such sales have been...

CUs Flocking To SBA Loan Program.(Credit unions)
May 19, 2003... Credit unions are flocking to take advantage of a three-month-old ruling expanding membership eligibility for the U.S. Small Business Administration's guaranteed loan program. Credit union participation in the SBA program has grown 21% to...

Calif. CU Seeks To Help As School Budgets Cut.(Orange County Teachers FCU )
May 19, 2003... Orange County Teachers FCU last week said it has set a goal of raising $1 million for local schools to help reduce the effects of cuts to education spending due to California's budget crisis. Rudy Hanley, OCTFCU's president and CEO, told...

Scammers Had Thousands Of CU Cards.(Navy FCU)
May 19, 2003... In one of the largest incidents of its kind, a counterfeit credit card ring- apparently operated by a husband-and-wife team-manufactured thousands of bogus Visa cards affixed with the Navy FCU name and logo to steal hundreds of thousands of...

10 Years, A Million Changes: Readers Reflect On How A Device Unknown To Them Just A Decade Ago Has Changed Them & Their Operations.
May 19, 2003... It was officially born in Switzerland in 1991: the World Wide Web. But the birth announcement couldn't really be read by most folks until the release of what many consider to be the first public Internet browser, Mosaic. In an amazingly short...

Frustration, Confusion As Intuit Raises Fee.(Pricing implementation for Web Connect frustrates credit unions)
May 19, 2003... Credit unions are responding with frustration and confusion over Intuit Inc.'s pricing implementation for Web Connect, an online banking feature that allows members to download transaction data directly into their Quicken and QuickBooks money...

ON DEADLINE.(House Democrats don't support bill that would allow credit unions and banks to offer home equity lines of credit)
May 19, 2003... Walk-out By Tex. Dems Likely To Doom Bill AUSTIN, Texas-The state Senate last week approved a bill which would allow credit unions and banks to offer home equity lines of credit, but the mass walk-out by House Democrats makes it doubtful...

TV Station Recovers Member Data From CU's Recycled PCs.
May 19, 2003... Power FCU here found itself the subject of local news coverage after it recycled an old hard drive, only to have a TV station purchase the computers and recover member data from it. One lesson learned: the credit union now incinerates used...

CUNA Mutual Employees Pause To Celebrate USA.
May 19, 2003... More than 2,000 CUNA Mutual Group employees gathered last week to celebrate American values of diversity, equality and opportunity. At the "Celebrate America" rally held in the atrium of the company's headquarters office, employees donned...

Ore. Bank CEO Lobbies For Tax.(Brief Article)
May 19, 2003... The president of an eastern Oregon bank recently sent a letter to its customers urging them to contact their state legislators and ask that credit unions be taxed. The letter was sent at the same time the state's banks and credit unions...

Text Of Oregon Bank President's Letter.(Taxation of credit unions is discussed)
May 19, 2003... Below is the text of the letter attributed to Bruce Penoske, president and CEO of Community Bank in Joseph, Ore., that was sent to the bank's customers. Most Oregonians don't realize that the 109 credit unions conducting business in the...

Worth Noting.(CUNA board elections and fraud bills enacted in Washington)
May 19, 2003... CUNA Board Elections Are Open MADISON, Wis.-Members of CUNA have through June 20 to cast votes for candidates for eight of the 24 seats on the CUNA board that are up for election. Races this year are for seats in Northeast (District 1) for...

Even If You Could Go Back In Time, Who'd Believe You?(Scenario given is credit union's boardroom, circa 1993)
May 19, 2003... The scene: Your credit union's boardroom, circa 1993. Present are board members and the CEO. The scenario: Thanks to the latest fee-driven service from your trade association, you've been whisked 10 years back in time in order to "know...

Lessons In Brands, SEC & Misunderstood Competitor.(Credit unions attending NACUSO's annual meeting)
May 19, 2003... Credit unions attending NACUSO's annual meeting here got lessons in branding, were told by a check-casher he's delighted by the misconceptions of the industry, and were encouraged that the SEC will soon issue its ruling related to CUSOs. ...

Economist Sees Little Improvement In 'O3, Targets 'O4.
May 19, 2003... Credit unions are in a good position to excel even as the economy sputters, and in the process build mutually profitable relationships with their members, a leading credit union economist told CUs here. Dave Colby, CUNA Mutual Group's...

Product & Service.(Aimbridge Group will sell its automotive indirect lending business in Colorado and Wyoming to Credit Union Indirect Lending Assn)
May 19, 2003... Aimbridge Sells Biz To CUILA DENVER-The Aimbridge Group said it will sell its automotive indirect lending business in Colorado and Wyoming to Credit Union Indirect Lending Association (CUILA, Inc.). CUILA, Inc. is a Colorado-based credit...

Responding To Demand, BECU Introduces Trust Service.
May 19, 2003... Boeing Employees' Credit Union believes it has become the first credit union in the state of Washington to offer trust services to its members. The new BECU Trust Co. is a subsidiary of BECU Financial Services-a wholly owned subsidiary of...

CUSO Offerings Pitched As Key To Capturing More Members' Assets.(Credit Union Service Organizations)
May 19, 2003... The competition for assets is intense and increasing as new players enter the game, transaction revenues are decreasing, and margins and spreads are getting thinner. So how are credit unions supposed to thrive in the current environment? ...

Worth Noting.(Merger of Franklin Media Credit Union and Meriwest Credit Union; other news is noted)(Brief Article)
May 19, 2003... Franklin Media CU To Merge SAN JOSE, Calif.-The members of Oakland, Calif.-based Franklin Media Credit Union have approved a merger with San Jose, Calif.-based Meriwest Credit Union. The merger expands Meriwest's charter to attract and...

Bank Shots: Two Texas CUs Say Rivals Have Nothing On Them.($1.2-billion Community CU and $3-billion Security Service FCU)
May 19, 2003... Big bank websites, which continue to attract national attention for delivering enhanced usability and utility, don't hold a candle to their credit union counterparts. That's according to two of the nation's largest CUs, $1.2-billion...

The 2003 Credit Union Journal Technology Panel.
May 19, 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.(Up to 800 members of Virginia CU had their Visa credit and debit cards blocked; notes other news)
May 19, 2003... Hundreds Of Members Affected By Hackers RICHMOND, Va.-As many as 800 members of Virginia CU had their Visa credit and debit cards blocked because someone had hacked into a merchant's computer system, compromising member identities and...

While One Small CU Takes A Pass On Member-Directed ACH...(Tarrant County CU says ACH transfers are cost prohibitive)
May 19, 2003... Member-directed ACH transfers are the latest online banking essential and, according to many credit unions that say the technology is breathing new life into the Internet. But one small credit union here has decided to wait for online bill...

...Another Sees Advantages To Be Offered By The Service.(Tuscaloosa VA FCU offers member-directed ACH transfers and electronic bill pay)
May 19, 2003... Member-directed ACH transfers and electronic bill pay help place a $31-million CU here in the "technology forefront." That according to Cathy Bolling, manager at Tuscaloosa VA FCU (TVACU). "If we don't offer electronic payments to our...

Technology News.(multiple briefs)
May 19, 2003... Empire, DigitalMailer In Deal ALBANY, N.Y.-Empire Corporate FCU and DigitalMailer, Inc., Herndon, Va., an electronic statement and digital communications company, announced the deployment of their check image interface to electronic...

EFT Task Force Seeks To Stop Skimming Of Debit Cards.
May 19, 2003... A task force assembled last year by the Electronic Funds Transfer Association to suggest ways to stop the illegal skimming of financial data from debit cards at automated teller machines has drafted preliminary recommendations-most of them...

Tech Personnel Changes.(Brief Article)
May 19, 2003... Milz New President of GALAXY TROY, Mich.-Tim Milz has been named president of GALAXY Plus Credit Union Systems, a unit of Fiserv, Inc. Milz, 1 24-year verteran of financial services data processing, replaces Bob Miotke, who retired after...

The 'Net Gain: Credit Union Journal Readers Share Their Insights On Their First Experiences With A Web Browser, What The Internet Has Meant To Their Credit Unions, And What They Believe Lies Ahead.
May 19, 2003... How The World Has Changed In 10 Years WEST PALM BEACH, Fla.-Until the mid-1990s, going online was typically thought of something annoying and to be avoided. All that began to change in 1993 with the release of the Mosaic Internet browser....

Impressions From Pre-Internet Days To What Lies Ahead For CUs (And the World) Tomorrow.
May 19, 2003... Soon after the Mosaic Web browser came out, I attended a seminar about it. At the end, about half the attendees said, "They must be crazy. There is no practical use for this thing." How wrong they were. The Internet allowed exchange of...

Time For CUs To Investigate Creation Of A Digital Support Channel.
May 19, 2003... Web technologies clearly have the potential to create a powerful support channel for members and staff. Imagine a system where members and staff (end-users) using only a web browser could quickly find information from a central source, some of...

When Have You Effectively Implemented Technology? When You No Longer See It.
May 19, 2003... A decade ago in Scientific American, Mark Weiser of Xerox Corp. wrote, "The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it." The...

Looking For A Low-Budget Way To Avoid Potentially Big-Budget IT Problems?
May 19, 2003... Take Advantage of The Credit Union Journal's Panel of Technology Experts. Send Your Question To Editor Frank J. Diekmann at fdiekmanncujournal.com. Questions Are Anonymous, And Are Responded To By The Nearly Three-Dozen Tech Experts The...

Lessons In Why Channel Integration Really Matters.("Multi-channel" and "Web services" in relation to credit unions)
May 19, 2003... Credit unions increasingly live in a "multi-channel" world. The job they do in integrating those channels will be the primary driver of success, according to one person. That was the message from Steve Williams, who spoke at an educational...

Successful Lenders Share What Works For Them Online.(Government Employees CU of El Paso (Texas) has success with e-lending)
May 19, 2003... Two credit unions that have had great success with their e-lending programs shared some best practices and lessons learned with loan officers attending a recent meeting sponsored by the CUNA Lending Council. The two credit unions doled out...

Ala. CU Believes In Marketing Via ATMs.(Redstone FCU)
May 19, 2003... A web-driven ATM is a better ATM, believes one credit union here. The reasons? Marketing is enhanced and members may benefit from a "richer ATM experience," according to Sherry Swinford, manager of automated operations at Redstone FCU. ...

Fiserv Deals Fill Last Holes In National Image Exchange.(Has contracts with Viewpointe Archive Services LLC and Small Value Payments Co.)
May 19, 2003... A pair of Fiserv Inc. image-exchange agreements announced at the Bank Administration Institute's TransPay Conference-one with Viewpointe Archive Services LLC, the other with Small Value Payments Co.-are filling in some of the last remaining...

Affinity Plus Offering Free Online Bill Pay.(Affinity Plus FCU)(Brief Article)
May 19, 2003... Affinity Plus FCU has begun offering free online bill pay to members. The $800-million credit union said that most competitors in its market are charging from $4.50 to $6.50 per month for the service. "In listening to our members and...

Technology News.(MicroBilt Corp offers Online Collection Service; notes other news)
May 19, 2003... Online Collections Debuts KENNESAW, Ga.-MicroBilt Corp., a provider of credit bureau reporting, has released Online Collection Service at www.creditcommander.com. The site now offers both credit and collection services. "The online...

In-Branch Kiosks Let Members Interact, Ask Questions, Get Interactive Demo's.
May 19, 2003... Alternatives FCU here is making it easier for members to ask questions of their board representatives, find out the latest interest rates, or just give their two cents worth about CU-related issues. CEO Bill Myers said each of the three,...

Big Question As CUs Move To Dump Quicken: How Many Members Care?
May 19, 2003... The Quicken download icon may soon disappear from credit union online banking sites, as many CUs choose to dump Intuit's Web Connect service rather than starting to pay hundreds to thousands of dollars per year in licensing fees. The...

More Than Just BROWSING: It Wasn't There 10 Years Ago. Now Many Can't Live Without It. A Look At How That Thing Called A Browser Ended Up On Your Desktop.
May 19, 2003... Type the words "credit union" into Google and you will get more than 2.1 million potential matches. Use that same sentence 10 years ago, and you wouldn't have found 2.1 people who even knew what you were talking about. All of that began to...