Credit Union Journal articles from September 2008

Credit Union Journal archives from September 2008

National Presence: CUs Seek High Profile At Conventions.
September 1, 2008... ST. PAUL, Minn. -- For the second week in a row, credit unions will be seeking to raise their profile and advance their interests at a political convention. This week it's with the GOP at the Republican National Convention here. Last week,...

State Realities: Regulators Talk Balance Sheet Issues.
September 1, 2008... SEATTLE -- Don't think for a moment the U.S. Treasury Department's proposal to eliminate dual chartering for credit unions is going to quietly pass by the attention of NASCUS. The National Association of State Credit Union Supervisors held...

Trades, Banks Press NCUA To Rethink Credit Card Plan.
September 1, 2008... WASHINGTON -- The Comptroller of the Currency is urging NCUA, the Federal Reserve Board, and the Office of Thrift Supervision, to make significant changes to a proposal to define unfair and deceptive credit card practices. The OCC, which...

Revisit, Document Policies Before Examiners Arrive.
September 1, 2008... CHICAGO -- Credit unions in all regions of the country should be revisiting and thoroughly documenting the thinking behind all policies and procedures as state and federal regulators toughen the examination process, according to one CPA firm....

Postcard From The Past-And Present: 54 Years Later, CU Member Recalls Photograph.
September 1, 2008... MORA, Minn. -- When Steve Ahlness opened the July 14 issue of Credit Union Journal, he noticed something familiar about the 54-year-old photo that was published as part of this newspaper's Postcards from the Past series. Ahlness, it turns...

ON DEADLINE.
September 1, 2008... Southern Calif. Proposed Merger Is Called Off MORENO VALLEY, Calif.-A proposed merger between Visterra Credit Union here and the Credit Union of Southern California in Brea has been called off. The two credit unions, both founded in...

Rogue FCU Is Auctioning Off Repo Cars Over The Internet.
September 1, 2008... MEDFORD, Ore. -- With a big increase in auto repossessions, Rogue Federal Credit Union is auctioning off its returned or repossessed vehicles on the Internet. A surge in the number of people turning in their cars because they can no longer make...

Truliant Offers Mini-Grant Program.(Brief article)
September 1, 2008... RALEIGH, N.C. -- Truliant Federal Credit Union has launched a new program that provides funding to local non-profits. Called the "Truliant Community Mini-Grant Program," it provides grants to nonprofits can use to support operational costs. ...

FDIC Reports Boost To Reserves By Staggering 2,000%.
September 1, 2008... WASHINGTON -- The Federal Deposit Insurance Corp. (FDIC) boosted reserves more than 2,000% during the second quarter to cover the costs of bank failures. FDIC said it was reserving $10-billion during the second quarter after the number of banks...

Members Worried? Put Them At Ease.
September 1, 2008... WEST PALM BEACH, Fla. -- Just what the heck is a credit union? And how safe are they? The Credit Union Journal has created statement stuffers that directly address members' current concerns over the security of their credit union, what the...

Mid-Year Data Show Members Are Savers, Not Borrowers.
September 1, 2008... ALEXANDRIA, Va. -- Credit union members continue to save more than they are borrowing as the economy stifles economic activity. Mid-year data released by NCUA shows savings were up significantly during the first half of the year at 7%, compared...

WORTH NOTING.
September 1, 2008... Bankers Won't Seek Divestiture Of Members HARRISBURG, Penn.-Bankers in this state have filed a response in Federal District Court in a ruling on field-of-membership involving three credit unions in the state. The bankers asked that the...

Success In Lac Qui Parle And Yellow Medicine? Yes, Shows Dawson Co-Op.
September 1, 2008... DAWSON, Minn.-Despite the tough conditions in rural Minnesota and the shrinking population in the counties Dawson Co-op CU serves, the $53-million credit union has deployed strategies to keep going strong. Even as the population of Big...

CU Targets Rocky Top Audience With Message On Top of a Rock.
September 1, 2008... KNOXVILLE, Tenn. -- Social media and a clever publicity stunt have given UT FCU more hits in a month on its youth website than it had received in a year. The site, UTFCUrocks.com, was recently upgraded with a blog, Twitter and Flickr...

NOW IN THE MARKET.
September 1, 2008... 'Dare To Grow' Set For Louisville LOUSIVLLE, Ky.-The "Dare to Grow" Conference sponsored by 10 corporates is scheduled for Nov. 12-14 at the Hyatt Regency here. Among the speakers will be CUNA's Steve Rodgers, editor of the Environmental...

Sweeeeeet! Well, Not Exactly For One CU In The Everglades.(impact of governments acquisition of United States Sugar Corp. on credit union)
September 1, 2008... Your disaster plan has no doubt gotten much more detailed and sophisticated in a post 9/11 and Katrina World. Those run-of-the-mill disasters, fires and floods and tornadoes? You're ready. The slightly more exotic but increasingly common...

Here's An 'Evolutionary' Idea: Remain A CU.
September 1, 2008... In the June 30 edition of Credit Union Journal, Peter Duffy wrote an article titled, "Evolving Credit Unions Demand What Congress Intended: Option to Change Charters." This article could have been written by any of the leaders of the thrift...

Proven Strategies For E-xtending Your Brand.
September 1, 2008... With financial service trends driving towards mobility and efficiency, we need to invest in and examine how we can extend our products and services through new e-channels and challenge ourselves on product differentiation. Growth of your...

Bright Spot In Dark Skies: The Younger Demo.
September 1, 2008... LAS VEGAS-The gloomy news in the financial sector does not mean there are no bright spots for credit unions, according to one person. Bob Hoel, a fellow at the Filene Research Institute and its former executive director, "congratulated"...

Eight Secrets of the 'Star' Credit Unions.
September 1, 2008... LAS VEGAS -- Bob Hoel reminded that the Filene Research Institute has uncovered the eight secrets of high-growth CUs, those it calls "stars": * Star CUs are highly effective lenders-the No. 1 predictor of growth is lending. "Service is...

What To Do Now That Being 'Bear Stearned' Is In Lingo.
September 1, 2008... SAN DIEGO -- Perhaps appropos of the just-concluded Olympics, Fred Becker quotes Chinese philosophy in looking at what's ahead for credit unions. NAFCU's CEO took a break during a recent event it hosted to tell Credit Union Journal current...

Corporate CEO Urges Utilization of 'Leverage'.
September 1, 2008... LAS VEGAS -- The president of one corporate credit union is urging credit unions to maximize their balance sheets by better utilizing "leverage." Moreover, said Lee Butke, president of Columbus, Ohio-based Corporate One FCU, added that...

Eight Is Not Enough: On 08/08/08, Penn. Credit Union Offers 'Crazy 8s' On Rates.
September 1, 2008... SEWICKLEY, Penn. -- The number eight symbolizes wealth and prosperity to the Chinese-and to residents of this community recently, as well. PA HealthCare Credit Union gave its members a chance to cash in on that luck starting at 8:08 am on...

CUNA, NAFCU Pan NCUA Proposal, Bankers Approve.
September 1, 2008... WASHINGTON -- Both major credit union trade associations are panning an NCUA plan to dramatically alter the current federal regulatory process for approving multiple group credit unions' applications to serve underserved areas. At the same...

DOD Suggests Narrowing protection from military.
September 1, 2008... WASHINGTON -- The Defense Department is recommending that Congress narrow a law designed to protect military service members and their families from abusive payday loans. In a report to the Senate Armed Services Committee, the department said...

Disclosing Risk-based Pricing Will Come at High Cost.
September 1, 2008... ARLINGTON, Va. -- NAFCU said it sees significant potential cost increases for credit unions in a plan by the Fed and FTC to implement the risk-based pricing provisions of the Fair and Accurate Credit Act of 2003 (FACT Act). Specifically, NAFCU...

Former IMF Economist Predicts next bank failure.
September 1, 2008... SINGAPORE -- As the global financial crisis worsens at least one large U.S. bank is going to collapse within the next few months, according to the former International Monetary Fund's chief economist. Kenneth Rogoff said that despite hopes that...

NCUA Emphasizes Need For Due Diligence On Third Party.
September 1, 2008... ALEXANDRIA, Va. -- NCUA has sent a Letter to Credit Unions (08-CU-19) emphasizing how important it is to do proper due diligence in setting up and maintaining third-party relationships. Such third parties, said agency Chairman Michael Fryzel,...

Poeple.
September 1, 2008... Royal CU, Eau Claire, Wis., named Jesse Lukewich home loan representative. TNB Card Services, Dallas, named Frank Sommers vice president, regional sales executive. CFE Federal Credit Union, Lake Mary, Fla., announced that Kevin Miller...

FHLBs Continue To Post Profits.(Federal Home Loan Banks)(Financial report)(Brief article)
September 1, 2008... WASHINGTON -- While Fannie Mae and Freddie Mac post red numbers, the news isn't so gloomy for all. For second quarter 2008, 10 of the 12 Federal Home Loan Banks turned a profit. Of those 10, four reported a profit increase of more than 50%....

Vishing Scams See Resurgence.
September 1, 2008... CLATSKANIE, Ore. -- "Vishing" scams appear to be making a resurgence in markets across the country, with credit unions being targeted specifically. In this market on the Columbia River, Wauna FCU has been busy alerting members they should...

Truliant Makes Local Mini Grants.(Brief article)
September 1, 2008... RALEIGH, N.C. -- Truliant Federal Credit Union has launched a new program that provides funding to local non-profits. Called the "Truliant Community Mini-Grant Program," it provides grants nonprofits can use to support operational costs....

NAFCU: Don't Put Limits On MBLs.
September 1, 2008... ARLINGTON, Va. -- NAFCU is expressing concern NCUA may be preparing to place what it says are unnecessary restrictions on credit unions' member business loans. The trade group, following up on the agency's Advance Notice of Proposed...

Analysts Say 'Beat Up' Card Market Won't Soon See Rebound.
September 1, 2008... PETERBOROUGH, N.H. -- The continuing problems in the U.S. economy are spilling over into credit cards, according to industry analysts, and that includes credit union issuers. Tim Kolk, managing partner of Brookwood Capital, based here, told...

Portfolio Sales Decline During Second Qtr.(Financial report)
September 1, 2008... PETERBOROUGH, N.H. -- Just five credit unions sold their card portfolios during the second quarter, a marked decline in such sales by CUs. According to Brookwood Capital and Asset Exchange, both of which consult on card portfolio issues, total...

Advice On Revenue: Look To Merchants.
September 1, 2008... WILMINGTON, N.C. -- For some time the news in plastic cards has not been encouraging. But one consultant sees opportunity for revenue growth. Robert Giltner, consulting partner with My Rewards here, said credit unions should look to...

Debit Card Rewards: Room For Growth.
September 1, 2008... ATLANTA -- Considering the proliferation and variety of reward programs available, it is surprising that debit card rewards are still so limited in their availability, according to a new study. The report, "Optimizing Credit Card Programs"...

PULSE Debit Issuer Study Offers Insights Into Latest Trends.
September 1, 2008... HOUSTON -- Surcharge-free ATM access is gaining in popularity among debit card issuers, according to the 2008 Debit Issuer Study, commissioned by PULSE. The same survey also found financial institutions are increasingly offering debit...

NOW IN THE MARKET.(The Members Group offering general purpose reloadable cards to CU clients)(CFCU Community CU agreeing to convert processing of its 11,000 credit card accounts to PSCU Financial Services)(Card Services for Credit Unions (CSCU) offering its member CUs free holiday statement inserts for their Visa and MasterCard credit and debit accounts)
September 1, 2008... TMG Adds Reloadable Cards DES MOINES, Iowa-TMG (The Members Group) is now offering general purpose reloadable cards to CU clients. The reloadable card service, called ATIRAreload, allows cardholders (and other authorized users) to load...

Study Examines Which State's Citizens Have Highest Card Debt.
September 1, 2008... BOSTON -- Alaskans are carrying more credit card debit than residents of any other state, while residents of West Virginia are carrying the least, according to a new study. The study, from Americans for Fairness in Lending, examined the...

CUJ Q&A: Examiners Taking A Closer Look At 3rd Party Due Diligence, Out-Of-Territory Lending.(NASCUS Chairman George Reynolds and Roger Little, deputy commissioner)(Interview)
September 1, 2008... SEATTLE -- Despite the ongoing credit and housing crises, an economic slump and several financial institution failures, credit union supervisors from two closely watched states say they do not expect any further CU failures based on current...

CUJ EXIT Interview: NCUA Regional Director Turned CEO Reflects On Career, CUs, And Future.
September 1, 2008... WARNER ROBINS, Ga. -- After 37 years in credit unions, John Ruffin said he will retire as CEO of Robins FCU on Dec. 31. Ruffin joined RFCU in 1997 as EVP and was named CEO in 2003. Prior to that, Ruffin was with NCUA for 26 years, including as...

Analyst: Previous Success No Indication of Future.
September 1, 2008... HILTON HEAD, S.C. -- So you say your credit union has been profitable and has also been attracting new members. Who says it will continue? That was the question being asked by Tim Harrington, who notes that previous success "doesn't mean...

Indiana Jones & The Crystal Clear Opportunity.(Mountain America Credit Union organizing a member appreciation event)
September 1, 2008... SALT LAKE CITY -- Members who use business services at Mountain America Credit Union may feel a little more adventurous, and willing to take advantage of the credit union's services thanks to a unique member appreciation event. Nearly 300...

Market To Your Members' Passions Not To Your CU's Promotions.
September 1, 2008... SAN DIEGO -- The traditional model for marketing is not as effective today, forcing credit unions to develop "member-centric" methods of generating account growth. That is the message from one analyst who is calling on credit unions to...

Eco-Friendly Decking System Wins The Big Idea Challenge.
September 1, 2008... FAIRBORN, Ohio -- A "green-friendly" portable decking system anamed winner in the "What's the Big Idea" challenge sponsored by Wright-Patt Credit Union. It was submitted by Michael Weaver of nearby Miamisburg, Ohio, who calls his proposed...

MSUFCU Ads Turn Members Into Celebrities.
September 1, 2008... EAST LANSING, Mich. -- A marketing campaign by Michigan State University FCU has turned some of its members into celebrities in this town. The credit union had turned to member testimonials due to their credibility and as an effective way...

QUICK READS.
September 1, 2008... Bill Sterner To Be Presented With Wegner BOULDER, Colo.-The National Credit Union Foundation said it will posthumously present a 200 Herb Wegner Memorial Award for Lifetime Achievement to Bill Sterner, a long-time credit union pioneer who...

What Biden Means To CUs.
September 1, 2008... WASHINGTON -- The selection of Sen. Joe Biden (D-DE) by Sen. Barack Obama as his running mate in the race for the presidency could have implications for credit unions and other financial institutions should Obama defeat Sen. John McCain in the...

WORTH NOTING.
September 1, 2008... CFO Council Releases White Papers MADISON, Wis.-Testing strategic financial goals and analyzing credit union financial ratios are the subjects of two new white papers from the CUNA Chief Financial Officers (CFO) Council. "Testing a...

Bad Connection?: CUs Are Worried Examiners Aren't Getting The Message.
September 8, 2008... MADISON, Wis. -- When it comes to members with mortgage problems, there is a disconnect between what NCUA is saying at the board level and what examiners are saying when on-site, credit unions are reporting. The disconnect issue-one that...

More Powers Sought On Member Business Loans.
September 8, 2008... ALEXANDRIA, Va. -- Credit unions are urging NCUA to expand powers to make member business loans by increasing permissible loan-to-value ratios on some loans, lowering equity requirements and reducing the minimum holdings for loan...

9/11 Issues Loom 7 Yrs. Later: For Some CUs Fallout From Tragedy Affects Strategies, Growth Opportunities.
September 8, 2008... WASHINGTON -- Seven years after the horrific terrorist attacks of Sept. 11, 2001, the most lasting fallout for most credit unions is dealing with the paperwork related to cash transaction and suspicious activity reports. But for a group of...

Insurance Offers Members Protection, CUs New Revenue.
September 8, 2008... MADISON, Wis. -- Legislation that could negatively affect one revenue stream and the current mindset of consumers may combine to make the sale of insurance products more important sources of fee income. "There are definitely opportunities...

Mark Your Calendar.(Conference news)(Calendar)
September 8, 2008... Credit Union Journal's Grow Show, the only conference in credit unions 100% dedicated to highlighting successful CU growth strategies, will be held May 4-9, 2009 at a very special location: the Hotel del Coronado in San Diego. Make plans now to...

ON DEADLINE.
September 8, 2008... NCUA Expands 'Suspension Of Services' Policy ALEXANDRIA, Va.-NCUA, which allows the suspension of services to members who cause a loss, said credit unions may suspend services in other cases as well, such as in the case of members who are...

Reports Of Computer Glitch At Acquired CU Overstated Problem, PSCU Says.
September 8, 2008... DENVER -- On the heels of the collapse of Norlarco Credit Union and the negative publicity that surrounded the failed institution, the last thing Public Service Employees CU needed was bad press regarding the service it's providing former...

Gulf Coast Mops Up As Southeast Braces For Hanna, Ike & Josephine.
September 8, 2008... NEW ORLEANS -- As the southeast braces for a possible one-two-three punch from Hurricanes Hanna, Ike and Tropical Storm Josephine, other parts of the country are mopping up after Hurricane Gustav. "From the reports we have gotten back thus...

Valley CU Is 3rd CU To Fail In California.
September 8, 2008... SAN JOSE, Calif. -- Another state charter in California was placed into conservatorship last week when regulators took over the $257-million Valley CU. Valley CU, which reported a $5.8-million loss for the first half of 2008 and which at...

Members Worried? Put Them At Ease.
September 8, 2008... WEST PALM BEACH, Fla. -- Just what the heck is a credit union? And how safe are they? The Credit Union Journal has created statement stuffers that directly address members' current concerns over the security of their credit union, what the...

WORTH NOTING.
September 8, 2008... Conference To Tackle Crime MEMPHIS, Tenn.-A conference to increase awareness of the white collar crime and mortgage fraud problem, and to offer solutions for the prevention and detection of fraud, will be held here in the fall. The...

'Conserving' Fees Is Key To Success For CU That Has Topped Charts 4 Yrs. In Row.
September 8, 2008... JEFFERSON, Mo. -- Low fees are nice, but no fees are nicer. Conservation Employees Credit Union charges only 25 cents to join and an insufficient funds fee of $15, but nothing else. That commitment to its membership has paid off for the...

NOW IN THE MARKET.
September 8, 2008... CUBG Celebrates Two Milestones PORTLAND-CU Business Group recently attained two milestones. First, it recently signed up Houston FCU as its 250th CU. And, since CU Business Group's inception five years ago, the CUSO has reviewed more than...

CUs Continue Awareness Blitz At Events Held In Conjunction With Republican National Convention.
September 8, 2008... ST. PAUL, Minn. -- After delaying the festivities out of respect for the Gulf Coast states that were struggling with Hurricane Gustav just as the Republican National Convention (RNC) was supposed to be kicking off, credit unions were out in...

Kicking Off Another Season At The Ol' U of Credit Union.
September 8, 2008... The scene: the University of Credit Union's football team's locker room prior to the 2008 season opener. The locker room is nearly 100 years old, and although it's had extensive renovations over the years, if you look hard enough you can see...

CALENDAR.(Calendar)
September 8, 2008... SEPTEMBER Sept. 8-10 CUNA Payment Systems Conference, Sheraton Baltimore City Center. For info: 800-356-9655, ext. 4249, www.training.cuna.org. Sept. 10-11 CU Association of Wyoming's Annual Meeting and Convention, Laramie...

More Proven Strategies For E-xtending Your Brand.
September 8, 2008... You know you need to leverage the electronic banking channel to grow your credit union. But what you may not know is just how to do it and what the successful providers of e-banking know. In this, the second of two parts, we delve into...

As Economy Continues To Weaken, Is Your CU Ready For More Bankruptcy Filings?
September 8, 2008... As the economy continues to show signs of weakness, credit unions increasingly face the prospect, if not the actual event, of a credit union member filing for protection from creditors under the Bankruptcy Code. When this happens, a credit...

Adding Members Is Half The Battle, Becoming PFI Is Next Step.
September 8, 2008... Once a credit union has been able to acquire a member, it must do whatever it takes to keep them as a repetitive user of its services, and ensure "PFI" (primary financial institution) status. As mentioned in several of my previous articles,...

Research: Top 10 Tools To Build Your CU's Member Growth.
September 8, 2008... Growth is fueled by the member experience. Research shows 10 tools can enhance that experience to build the highest loyalty and gain new members by referral. 1) Be the employer of choice-an institution that employees recommend as a place...

NCUA Examiner Challenges Agency's Union Contract.
September 8, 2008... WASHINGTON -- A long-time NCUA examiner has filed suit against the federal agency and its examiners' union, the National Treasury Employees Union, claiming the year-old contract the two sides entered into violates federal worker rules. The...

New Charter Lets Self-Help Expand to California.
September 8, 2008... ALEXANDRIA, Va. -- The Center for Community Self-Help, which operates the nation's most prominent community development credit union, was granted a charter by NCUA to develop a new federal credit union that will allow it to offer financial...

CDCUs Get $5.6 Million in Federal CDFI Funding.
September 8, 2008... WASHINGTON -- Fourteen credit unions and affiliated organizations were awarded more than $5.6 million in funding last week from the Treasury Department's Community Development Financial Institutions program, up slightly from last year's $5.3...

People.
September 8, 2008... In Washington, Terrin Griffiths and Samuel Inman have joined the Credit Economics Group. The National Credit Union Foundation, Madison, Wis., named Josie Collins resource development and donor relations director. The Richard Myles...

NCUA: Insider Looting Sunk CU.
September 8, 2008... GLEN ROCK, N.J. -- NCUA charged in federal court that former executives and directors of Peoples First Choice FCU siphoned millions of dollars from the one-time $25-million credit union, forcing it into the arms of the federal regulator amid a...

Another Ailing CU Takes Flight.
September 8, 2008... HONOLULU -- Aloha Airlines FCU, whose corporate sponsor filed for bankruptcy in March, was approved by NCUA for a so-called TIP charter allowing it to serve any and all air industry employees in Hawaii. The flight is a similar one charted...

Insight Financial Replaces 2 Execs.
September 8, 2008... ORLANDO, Fla. -- Insight Financial CU has removed its two top executives and named Richard Simonton, its CFO, as CEO. Lynn Owen III, former CEO, and former COO Jody Walls, are no longer with the financial institution, according to a statement....

Experts Debate Best Approach To Marketing, Selling Insurance.
September 8, 2008... CARMEL, Ind. -- While insurance products experts concur that getting insurance products out in front of the membership frequently and forcefully is absolutely critical, opinions differ on how to attract those members or potential members. ...

CUs See Big Boost In Penetration After Implementing Training Program.
September 8, 2008... RANTOUL, Ill. -- Specific employee training has helped a number of credit unions vastly improve their member penetration numbers when it comes to insurance sales. CUNA Mutual's lender development program is responsible for boosting sales...

Examiner Scrutiny No Excuse To Avoid Workout Loans, Expert Says.
September 8, 2008... LAS VEGAS -- Tough examiner scrutiny is no excuse for credit unions that fail to capitalize on a financial marketplace that has swung in their favor, thanks to the housing market collapse and the credit crunch, according to some analysts. ...

Brand Rankings Find Top CUs Have One Thing In Common: They Stay True To Values.
September 8, 2008... BIRMINGHAM, Ala. -- Financial institutions that stay true to their core values and deliver for their customers have the strongest brands, an analysis of all American banks and CUs revealed. In the first of its biannual brand value index...

Credit Unions Offer Strategies For Branding.(Company overview)
September 8, 2008... 1. ASI Cites Pricing History For Its Branding Success HARAHAN, La.-Serving the underserved usually doesn't reap huge rewards, but that is not the case for ASI CU, which was ranked as the strongest small CU brand in the U.S. in a Bancography...

News Briefs.
September 8, 2008... 'Practical Ideas' For Small CUs RANCHO CUCAMONGA, Calif.-Nearly 50 credit union leaders from California and Nevada took part in a summit geared toward providing a networking and learning forum for small credit unions. Participants listened...

WORTH NOTING.
September 8, 2008... Simmons Re-Elected DCUC Chair PORTSMOUTH, N.H.-Service CU CEO Gordon Simmons was re-electd chairman of the Defense Credit Union Council for 2008-2009. He previously served as chairman last year and from 2000 to 2002. Simmons was first...