Credit Union Journal articles from September 2003

Credit Union Journal archives from September 2003

California Enacts Tough, New Privacy Law; Others May Follow.
September 1, 2003... California Gov. Gray Davis has signed into law a tough "opt-in" privacy bill that was passed by the legislature last week. The law, partially crafted by the credit union lobby, will require users of confidential financial information to...

NCUA Opinion Puts An End To 'Householding' Of Statements.(National Credit Union Administration)
September 1, 2003... In a decision that could be costly for some credit unions, especially smaller ones, NCUA said that federally insured credit unions may not combine member statements from a single family in the same envelope because of privacy concerns. ...

Main Street Views On The Economy: What CU Business Lenders Are Seeing.
September 1, 2003... The U.S. economy may be emerging from its two-year slump-at least in the western part of the country-and small business owners are looking to their credit unions to help them expand. That's the consensus of nearly a dozen credit union...

United Nations FCU Takes The Plunge On Commerical MBS.(mortgage-backed securities)
September 1, 2003... United Nations FCU will become one of the first credit unions in the nation to dip its feet into the commercial mortgage-backed securities market after the board gave its go-ahead last week. Christopher Sullivan, chief investment officer...

Study: The Price of Growth Is Loyalty.
September 1, 2003... Credit unions as a whole are viewed more positively by consumers as acting in consumers' best interest than competing banks and other providers, according to newly released research. But credit unions finished behind a number of well-known...

ON DEADLINE.
September 1, 2003... CUNA Senior Staff See 3.5% Salary Increases WASHINGTON-CUNA's top executives received pay raises averaging 3.5% in 2002, as the trade association was reporting a fiscal year loss for the fourth time in the last seven years. CUNA President...

End Of Free Health Insurance Leads To Two-Day Picket.
September 1, 2003... Workers at Inland Employees FCU staged a two-day picket of the credit union's two offices last week over a continued impasse on contract negotiations. The United Steelworkers Union, Local 2003-21 staged the two-day strike to protest...

Study Suggests Members Open To Uninsured Accounts.(Filene Research Institute study)
September 1, 2003... Would credit union members be willing to invest in uninsured savings accounts if a higher rate of return was offered? Yes, according to a new Filene Resarch Institute study that examined the attitudes of 240 credit union members on...

'Privacy Week' Part of CU's Larger Differentiation Effort.(Brief Article)
September 1, 2003... U of C FCU will host its first-ever Privacy Week next week, with presentations to members by the local district attorney's office and a national consumer advocate, and an opportunity for members to bring sensitive documents for professional...

Worth Noting.
September 1, 2003... XFCU Establishes Memorial Fund WEBSTER, N.Y.-Xerox FCU has established the Raymond L. Batzel Memorial Fund in honor of the XFCU member who was killed during a robbery of the credit union last week. A 23-year Xerox employee, Batzel was in...

A CU CEO Seems A Natural For Governor of California.(Column)
September 1, 2003... One-hundred and thirty-four candidates running for governor of California and not a credit union CEO in the bunch? Doesn't that seem a little hard to believe given that California's CUs are the most savvy and best funded at the state...

Trade Group Execs Sound Off On Conversions, UBIT.
September 1, 2003... Representatives of three major credit union trade associations are suggesting the move by many CUs to federal charter is wrongly motivated, are in disagreement on share insurance, but are in agreement on the UBIT issue. CUNA President...

Calif. CU To Help Members, Non-Members Who Lose Job.
September 1, 2003... California's governor's race may be getting the headlines, but it's what led to that rare recall vote that is most felt by residents and which has several credit unions ready to help. With the state's budget $38 billion in the red, many...

Product & Service.
September 1, 2003... 2 CUs Join Callahan Partnership WASHINGTON-The $726-million Texas Dow Employees Credit Union in Jackson, Texas, and the $1.19-billion Affinity FCU in Basing Ridge, N.J. have joined the Callahan Credit Union Financial Services Limited...

Business Lending Group Hits $50M In Under 1 Year.(CU Business Group L.L.C.)(Brief Article)
September 1, 2003... Less than one year after commencing operations, CU Business Group, LLC said it has processed more than $50 million in business loans. The CUSO is jointly owned by Empire Corporate, Arizona-based FirstCorp and Oregon-based Northwest...

Texas League Taps Gill As New Senior VP-Advocacy.(Buddy Gill)(Brief Article)
September 1, 2003... The Texas league has named Buddy Gill, well-known to many credit unions for his consulting work, as its new senior VP for advocacy. Gill will be based in Austin, Texas beginning Sept. 30. "I've known Buddy since the campaign for HR 1151,...

Delaware Adopts 'No Hats, No Hoods, No Sunglasses'.(Brief Article)
September 1, 2003... Delaware's credit unions have become the latest to implement a "no hat, no hoods, no sunglasses" policy in an effort to prevent robberies. According to the Delaware league, it will provide posters and signs to affiliated credit unions that...

SACU Employee To Retire After 50 Years With CU.(San Antonio Credit Union)(Frances Guerra)(Brief Article)
September 1, 2003... Frances Guerra is retiring from San Antonio Credit Union (SACU) after 50 years. Frances Galvan (Guerra) began working at SACU, known then as GECU (Government Employees Credit Union) as a file clerk in 1953 as one of four employees. She is...

Oregon CUs Set Fundraising Record, Proclaim 'Unity'.(Brief Article)
September 1, 2003... The Oregon Credit Union Association (OCUA) said that in 2003 the state's credit unions have set new fundraising records for political action. More than $23,200 with 1,240 individuals participating from 35 credit unions, the Credit Union...

Cease-And-Desist Issued To Mysterious 'Zurich CU'.(Brief Article)
September 1, 2003... A temporary cease-and-desist order has been issued to the operators of "Zurich Credit Union" by this state's regulator, the Division of Credit Unions. The order states that the operators are in violation of the Washington CU Act by using...

3 CU Organizations Named Great Places To Work.(Brief Article)
September 1, 2003... Three credit union organizations have been identified as good places to earn a paycheck. The Business Journal has named Affinity Plus FCU, St. Paul, Minn., as one of the "Great Places to Work in the Twin Cities." Based on being a top...

Product & Service.(briefs)
September 1, 2003... Pentagon FCU Selects Enterprise ALEXANDRIA, Va.-Pentagon Federal Credit Union has selected Enterprise Car Sales, a division of Enterprise Rent-A-Car, to develop a comprehensive auto sales program for its one-million members. The...

Illinois' CUs Happy With Tough, New 'Predator' Rules.
September 1, 2003... The Illinois Credit Union League is quite happy with a tough, new anti-predator measure that has been signed into law by Gov. Rod Blagojevich. But, thanks to its definition of "high-risk" loans, the majority of its member credit unions...

CUs Look To 'Grow Their Way' Out Of Income Reduction.(Brief Article)
September 1, 2003... Expecting revenue blows from the Wal-Mart settlement, credit unions are figuring ways to increase debit card use rather than impose additional fees to hedge against losses. Visa USA's and MasterCard International's one-third reduction on...

Rear View Mirror Reflections From The Steering Committee: Leaders of The Campaign for Consumer Choice Share Insights On The Effort That Changed Credit Unions.(Tom Griffiths, Mike Mercer)(Interview)
September 1, 2003... In this installment marking the fifth anniversary of HR 1151, two credit union league presidents who were members of the steering committee of the Campaign for Consumer Choice -Tom Griffiths of Iowa and Mike Mercer of Georgia-look back and...

The CUJ Daily.(Missouri Bankers Association filed new appeal challenging state credit union regulator's field of membership grant)
September 1, 2003... Bankers Mount New FOM Challenge JEFFERSON CITY, Mo.-The Missouri Bankers Association filed a new appeal last week challenging the state credit union regulator's field of membership grant, this one a three-county bid by tiny Southeast...

At Least 9 CUs Apply For New TIPS Charters.(Trade, Industry, or Profession-wide charter)(Brief Article)
September 1, 2003... At least nine federally chartered credit unions have formally applied to NCUA to expand their membership base by converting to the new Trade, Industry, or Profession-wide, or TIP, charter. Documents obtained from NCUA by The Credit Union...

Study: Privately Insured CUs Not Disclosing Fact.(Brief Article)
September 1, 2003... A large number of privately insured credit unions are not complying with federal law and adequately informing members that their savings are not federally insured, a new government report said last. The report, issued by the General...

Fundraisers Held At Credit Union House.(Brief Article)
September 1, 2003... CUNA said it helped several leading lawmakers build their campaign warchests last month, sponsoring fundraisers at Credit Union House on Capital Hill. CUNA held fundraisers and made campaign contributions in July for Senate Banking...

Bankruptcy Filings Still Rising Among Members.(Brief Article)
September 1, 2003... Credit unions continue to be hit by the growing number of bankruptcies at increasing rates, according to NCUA. The number of credit union members filing for personal bankruptcy in the first half of the year rose to 143,171, or 16% more...

People.(Carreker Corp elected Keith W. Hughes to its board)
September 1, 2003... Carreker Corporation, Dallas, elected Keith W. Hughes to its board. Workers' Credit Union, Fitchburg, Mass., named Gordon R. Wetmore senior vice president/marketing. The Missouri Credit Union Association, St. Louis, elected to its...

Community Page.(Riverside County's Credit Union awarded over $5,000 in student scholarship money; notes other news)
September 1, 2003... RCCU Awards 10 Scholarships RIVERSIDE, Calif.-Riverside County's Credit Union awarded more than $5,000 in student scholarship money to Danielle Issa, Gabriel Murillo, Johnny Chen Yang, Daniel Hall, Jesse Paulos, Xiao-wen Qi, Natalie Guido...

Credit Unions Urged To Move Out To Longer Terms.(Brief Article)
September 1, 2003... Investment professionals are urging credit unions to take some of their bulging stocks of short- term investments, much of it parked in overnight accounts paying as little as 1% or less, and start going out longer on the yield curve. ...

Corrections & Clarifications.
September 1, 2003... The Missouri Credit Union Association's name and website were incorrectly listed in the CU Journal Factbook & Buyer's Guide. The website is www.mcua.org. Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Ala. CUs Invest In Compliance.(Brief Article)
September 1, 2003... The Alabama league said it will invest $75,000 in "League Infosight," a new online compliance system for credit unions. "We are extremely excited about the potential benefits that League Infosight can provide for our member credit unions,...

SC League Hits 100% Affiliation.(South Carolina Credit Union League )
September 1, 2003... The South Carolina Credit Union League said it now has 100% affiliation among the state's credit union after the $347-million Fort Jackson FCU rejoined the league following a 22-year absense. It is the first time the league has had 100%...

Two Years In A Changed World: Two Years After 9/11, Most Back At Work, Others Not; Foundation Has Good News; Tech Vendor Has No News.
September 8, 2003... It was two years ago this week that terrorists struck the U.S., killing thousands of people, causing billions in damage, and forever changing America's sense of security. Many credit unions and their employees were eyewitnesses to the...

CUs Seek To Craft Back-Up Relief Bill If Primary Bill Fails In Congress.
September 8, 2003... The credit union lobby is working with key lawmakers to craft a bill that would do much of what the pending regulatory relief bill would do-and then some-just in case the broad relief package fails to make it all the way to the finish line...

CEO Learns From Being Near The Fridge.(Jim Wisnieski, XCEL Federal Credit Union)
September 8, 2003... XCEL FCU CEO Jim Wisnieski will spend much of the second anniversary of the Sept. 11, 2001 terrorist attacks in the basement, next to the coffee maker and the refrigerator. It's not that Wisnieski will be seeking shelter: it's been his...

CU Biz Lenders See Pick Up In Demand, But Decry Gov't Obstacles.
September 8, 2003... While politicians look to Wall Street to guage the national economy, credit union business lenders that serve Main Street say they see signs of improvement-along with problems for small businesses that are outside their control. Here in...

ON DEADLINE.(briefs)
September 8, 2003... CU Turned Bank Now Set For Public Offering TACOMA, Wash.-Officials at former credit union Rainier Pacific Bank said they have all the regulatory approvals necessary to go public in an initial stock offering slated for later this month....

Second Payout Likely In Bentley Financial Services Case.
September 8, 2003... More than 100 credit unions victimized in the massive Ponzi scheme known as Bentley Financial Services are expected to get an additional payment on their principal investments over the next 60 days. Frank Mayer, a Philadelphia attorney...

(Frozen) Water & Power CU Has Cool Idea To Push Loans.(Water and Power Community Credit Union offers "Pretty Cool Stuff" promotion)(Brief Article)
September 8, 2003... Water and Power Community CU recently offered members cold, hard cash-literally. The credit union randomly selected 10 area residents to "put their financial woes on ice" as they competed in WPCCU's "Pretty Cool Stuff" contest in which...

FTC: 10M Americans Victims Of ID Theft.(Federal Trade Commission reports almost 10 million victims of identity theft)(Brief Article)
September 8, 2003... Identity theft victimized nearly 10 million Americans last year, and cost businesses and financial institutions almost $48 billion in losses and expenses, according to a survey released by the Federal Trade Commission (FTC) last week. ...

IRS Suspends UBIT Audits.(unrelated business income tax audits)(Brief Article)
September 8, 2003... CUNA said last week that it had been informed the Internal Revenue Service (IRS) has temporarily suspended audits of credit unions in three states over unrelated business income tax (UBIT). The IRS said it was seeking more guidance...

Worth Noting.(includes multiple news briefs)
September 8, 2003... 2 Named To Texas Commission AUSTIN, Texas-Texas Gov. Rick Perry has appointed Gary Lynn Janacek and Mary Ann Grant to replace Hal Thomas and Cynthia Cabaza on the Texas CU Commission. The nine-member commission supervises the Texas Credit...

Don't Know What You're Missing-Don't Know What You Had.(new disclosure rules on credit union conversions to banks)
September 8, 2003... They say you don't know what you have until it's gone. Yet how many of your credit union's members would really know what they had lost if your credit union has converted to a mutual savings bank? I mean really know? Don't forget...

Reality Check for One Community: U of C FCU Effort Seeks To Position Itself As Source of Unbiased Information.(University of Colorado Federal Credit Union)
September 8, 2003... The "Privacy Week" activities that U of C FCU will introduce this week are just one part of a larger effort to position the credit union as an unbiased source of information and advice. As reported Sept. 1, Privacy Week will include...

The CUJ Daily.(briefs)
September 8, 2003... CU24 To Provide ATMs, Parts TALLAHASEE, Fla.-Credit Union 24 said it will use ATM America Inc., a distributor of ATMs, as its preferred, low-cost provider of ATMs, ATM parts and supplies for credit union participants in the network. Under...

Reassignment Changes Elections For NASCUS.
September 8, 2003... The reassignment of long-time Tennessee CU Supervisor Pat Murphy has left the NASCUS board shifting gears just as Murphy was scheduled to become the next chair of the state regulators group. Murphy, who was scheduled to be elected NASCUS...

New Rules On CU Conversions.(Brief Article)
September 8, 2003... The NCUA board is expected to issue a proposed rule at its next meeting, Sept. 18, that will require credit unions to make more comprehensive disclosures to members when converting to mutual savings banks. Among the requirements will be...

Senator Urges Colleagues Not To Pre-empt Law.(Brief Article)
September 8, 2003... In a new round in the battle over federal preemptions, California's senators are urging key lawmakers to prevent pending credit reporting legislation from including provisions that would pre-empt the state's new opt-in privacy law. In a...

State Charters Continue To Seek Big, New FOMs.(Brief Article)
September 8, 2003... State-chartered credit unions here, which have been privy to some of the broadest field of membership grants, are applying for ever-larger FOM powers. Among them are new requests from Neighborhood CU, (formerly Dallas Postal CU) to...

People.(Citadel Federal Credit Union)
September 8, 2003... Citadel Federal Credit Union, Thorndale, Penn., promoted Kass Dahlquist to assistant manager of its West Chester office, and Kathleen Tullie assistant manager of its Chester Springs office. The Westerly Community Credit Union, Westerly,...

$50 Loan Offer 'Sweet Little Promo'.
September 8, 2003... Getting members to refinance their auto loans this year has not been as easy as waving a good rate in their direction. So, why not wave some money, instead? That's exactly what Georgia Federal Credit Union did to lure $6-million away...

Products & Services.
September 8, 2003... Shared Branches Being Shopped INDIANAPOLIS-The 12 service centers in Indiana's Shared Branch Network are employing the SERV!CE EXPER!ENCES program from Support Financial Resources. The mystery shopping program is designed to provide a...

Community Page.(APG Federal Credit Union celebrated the 20th anniversary)
September 8, 2003... APGFCU Celebrates 20 Years ABERDEEN, Md.-The APG Federal Credit Union celebrated the 20th anniversary of its Aberdeen branch, and recognized five original employees who opened the branch 20 years ago and continue their careers there today....

CUNA: Disagrees On 1 Plan, Agrees On Another.(Brief Article)
September 8, 2003... WASHINGTON-CUNA is asking NCUA to postpone for one year a final rule aimed at clarifying how revocable trust accounts are established and insured. The trade group said that credit unions need flexibility in how their forms display the...

Corrections & Clarifications.(Brief Article)
September 8, 2003... * The Credit Union Factbook & Directory (Aug. 25) included the wrong phone for Consolidated FCU in Portland, Ore. The correct phone is 503-232-8070. * Also in the Factbook, New Jersey Credit Union League President Thomas Shaughnessy's...

Pulling No Punches: Credit Union Advertising Is Increasingly Taking Off The Gloves When It Comes To Banks.
September 15, 2003... Perhaps it's the result of being the punching bags of banks for so many years, but some credit unions around the country are taking off the gloves with their advertising. In the City of Brotherly Love, for instance, Philadelphia Federal...

CU Reps Meet With IRS Seeking To Settle Dispute Over UBIT.(Unrelated Business Income Tax)
September 15, 2003... Representatives of several leading credit union groups are expected to meet with top officials at the Internal Revenue Services over the next few weeks in hopes of hashing out a resolution to the decades-long conflict over the Unrelated...

Preemption Reauthorization Has State Regulators Wary.
September 15, 2003... State credit union supervisors gathered here last week for the annual NASCUS convention are watching carefully as Congress debates the reauthorization of the law that provides federal preemptions of state credit laws. A clear consensus...

CU Salaries Continue To Rise, But Not As Quickly.
September 15, 2003... Credit union employee wage growth has slowed and is expected to continue on its downward trend, according to the CUNA E-Scan 2003 Complete CU Staff Salary Survey. But the survey also noted that although salary increases are down at credit...

ON DEADLINE.(briefs)
September 15, 2003... Treasury Endorses More Oversight For Two GSEs WASHINGTON-Treasury Secretary John Snow told Congress last week the Bush administration endorses a proposal to move the regulator over secondary mortgage giants Freddie Mac and Fannie Mae from...

Loan Growth (Finally) Outpaces Savings During July.(Brief Article)
September 15, 2003... Loan growth at America's credit unions outpaced savings growth during July, boosting the industry's loan-to- share ratio to 69.2%, according to the latest numbers. That's an increase from the 68.2% loan-to-share ratio recorded during June....

New Bill Aims To Thwart Counterfeiters.(new $20 bills)
September 15, 2003... As part of its campaign to thwart counterfeiters, the U.S. Mint will introduce new $20 bills next month. The new $20s, to be unveiled Oct. 9, will include several features becoming increasingly popular in currency bills, like security...

Minority Women Lag In Mngmt. In Financial Services.
September 15, 2003... The financial services industry trails other industries when it comes to minority women in upper-management positions, according to a new study by the Equal Employment Opportunity Commission (EEOC). But the applicability of the findings to...

House OKs FCRA, But Senate Status Iffy.(Fair Credit Reporting Act)(Brief Article)
September 15, 2003... The House voted overwhelmingly last week on a bill to reauthorize the Fair Credit Reporting Act, but the bill is in for a tougher ride as it moves over to the Senate. "We've really been working for several months on getting this done but...

Worth Noting.(briefs)
September 15, 2003... Holt Out As CEO Of Colo. League ARVADA, Colo.-Jim Holt, president of the Colorado/Wyoming Credit Union System has left the position. Holt had been CEO of the league for the past 18 months, and had been with the league for one year prior to...

You Can Kill All Those Trees-Or Try Going Out On A Limb.(credit union newspaper inserts)
September 15, 2003... About a month from now a small forest of trees and a tall mountain of opportunity are both going to go to waste. And it will all be in cooperative tribute to International Credit Union Day and Week. My reference is to those newspaper...

Check 21 Bill An 'Unprecedented Opportunity' For CUs.
September 15, 2003... Now that the House and Senate have approved separate check truncation bills-and a conference committee is negotiating the final details-it's all but certain that the long-awaited check truncation legislation will soon become law. The law...

Iowa League Blasts State's Banks For Surcharges, Tax Stance.
September 15, 2003... The Iowa league is estimating that this state's banks have pocketed an additional $10 million off Iowans who accessed their cash through automated teller machines (ATMs) during the year since ATM surcharging has been permitted in Iowa. Banks...

Product & Service.(briefs)
September 15, 2003... VCUL Endorses John M. Floyd SOUTH BURLINGTON, Vt.-The Vermont Credit Union League Services Corp. has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Houston, naming it as its "Preferred Business Partner" for the JMFA...

The CUJ Daily.
September 15, 2003... Court Hears Redistricting Case DENVER-Democratic lawmakers urged the state Supreme Court here to overturn a Republican-drawn congressional district that allowed a bank-backed candidate to win the state's new seventh district in one of the...

SEGs Taking Backseat To Community Charters.(Brief Article)
September 15, 2003... The trend among federally chartered credit unions is moving increasingly away from expansions through select groups and more and more towards community chartering. Data compiled by NCUA shows that field of membership expansions through...

Soft Money Arguments Draw Strange Bedfellows.(Brief Article)
September 15, 2003... The U.S. Supreme Court, in a pairing of strange political bedfellows, was asked last week to overturn the 2001 law banning so-called soft money to political parties. Individuals, corporations and unions have used the system to funnel an...

Bankers Assn. Having A Big Year In Fundraising.(Brief Article)
September 15, 2003... The American Bankers Association had one of its best political fundraising months ever, raising $555,752 for its political action committee, enabling it to build up its campaign warchest to a new high of $804,314, just as the congressional...

People.
September 15, 2003... Advantage Federal Credit Union, Rochester, N.Y., named Jeffrey Bocach CEO. First Atlantic Federal Credit Union, Eatontown, N.J., promoted Joan A. Kampo to assistant vice president of human resources, Jennifer Goceljak to vice president of...

Former Head Of CU Insurance Fund Says It's Time To Consider Changes.
September 15, 2003... One of the architects of the modern system of federal deposit insurance for credit unions called on credit union figures last week to seek major reforms to the current system under the National CU Share Insurance Fund, or NCUSIF. "We need...

Old-Fashioned Crime (Check Fraud) Demands Updated, 2-Pronged Strategy.
September 15, 2003... Credit unions should employ a two-pronged approach to fighting check fraud -one of the nation's fastest-growing crimes- two experts said last week at the National Association of Credit Union Supervisors' (NASCUS) 38th annual conference. ...

Show Of Hands Indicates CU Interest In Biz Lending.
September 15, 2003... When Jean Faenza, executive vice president for Telesis Community CU, asked a group of attendees at the CUNA Operations Council's meeting here how many of their credit unions currently offer business services to their members, approximately...

Incidental Powers Hasn't Made CUSOs Incidental, Argues One Proponent.
September 15, 2003... Incidental powers regulations have brought a new set of challenges and, according to Bob Dorsa, the need for credit union management to identify opportunity. Dorsa, the president of the National Association of Credit Union Service...

Los Angeles CUs See Awareness Rise Following Campaign.(Brief Article)
September 15, 2003... Credit unions in this very competitive media market are reporting a significant increase in awareness following a $1 million ad campaign. A radio and billboard campaign sponsored by more than 50 credit unions over the past six months in the...

Hiway FCU Gives Credit To Aggressive Ads.(Brief Article)
September 15, 2003... Hiway Federal Credit Union here is crediting an aggressive advertising campaign with boosting business. In its most recent campaign, HFCU states, "Ironically, the best place to bank in St. Paul is not a bank" and "4 out of 5 bankers fear us-the...