Banking Wire articles from August 2003

Banking Wire archives from August 2003

Co. Plans Big Inroads In Indirect Lending.
August 1, 2003... Look out CUDL, here comes the Aimbridge Group. In direct competition with CU Direct Lending, The Aimbridge Group plans to take its indirect lending nationwide. Aimbridge, formerly known as Bentley Networks, said last week it has...

ON DEADLINE.
August 1, 2003... Calif. League Says It's Studying Potential Privacy Ballot Initiative SACRAMENTO, Calif.-The California Credit Union League is analyzing a privacy initiative that reportedly is well on the way to qualifying for the March 2004 statewide...

Squeezing A Hundred Years Of Change Into Just Five.
August 1, 2003... Steve LaTourette was a relatively unknown congressman who knew little about issues facing credit unions until getting a surprise call from then-House Speaker Newt Gingrich. Six months into his new job as CEO, Dan Mica was trying to shovel...

The Happy Home (Lender): New Software Has Reduced The Tedium For One Credit Union.
August 1, 2003... The loan production process has become decidedly more agreeable for Robin Nelson, assistant vice president of real estate at Travis Credit Union. Until 2000, the $1-billion CU filed annual Home Mortgage Disclosure Act (HMDA) reports by...

Technology News.
August 1, 2003... Charter Oak FCU Rolls Out Spanish Website WALLINGFORD, Conn.- Charter Oak FCU has launched a Spanish language link from its website at www.charteroak.org. The credit union reported that during its first month the pages were viewed...

Mass. CU Touts Relationship With Member-Owned Firm.
August 1, 2003... Brockton Credit Union says it has what every credit union wants in a vendor relationship: an outsourcer that is at once understanding and flexible. "Our relationship with Connecticut On-Line Computer Center has been successful for two...

FCCU Finds The Good Word In Speech Recognition.
August 1, 2003... New members are experiencing easier-and faster-phone-based banking, thanks to speech-recognition technology launched in January at Financial Center CU. Speech recognition is "not such a chore to learn for new members," as compared with...

Technology News.
August 1, 2003... Half Move To OpenXChange WALLINGFORD, Conn.-Constitution Corporate Credit Union said that it and more than half of its membership have gone live with a new front-end account management system called OpenXchange. OpenXchange was developed...

Most Valuable Callers Given Phone Priority.
August 1, 2003... Atlantic Credit Union's "most valuable" callers are now pushed directly to the CU's most skilled and knowledgeable call center representatives via caller identity technology, "We're making sure that the most valuable of our members...

Study: Debit Users Want Rewards, Aren't Getting Them.
August 1, 2003... Few debit card users report having any rewards associated with their debit card, according to a recent research study by SYNERGISTICS RESEARCH CORP. Debit card users in the survey were asked to identify which, if any, of a number of...

'Be AFRAID Be Very AFRAID ': One CU Security Administrator Says She's Grown Tired Of Vendor Pitches Built Around Fear.
August 4, 2003... Fear sells. That's what many information security (IS) technology sales representatives are counting on-and it's time for them to stop, according to Thelma Snedaker, security administrator for $4-billion United Airlines Employees' Credit...

Report: $67M In Visa Debit Losses During 6 Months.
August 4, 2003... More than $67-million in losses were suffered by Visa Debit card issuers during the first half of 2002, according to new analsysis released by ATM & Debit News. That amount, said the publication, is 36.7% more than in the first half of 2001....

More Turning To The Web To Manage Card Accounts.
August 4, 2003... Most adult credit cardholders with Internet access now use the web to manage their accounts despite continuing concerns about fraud and loss of privacy, according to an Online Consumer Credit Card Survey commissioned by TSYS. Among the...

Visa, MasterCard Say No Way To Know To Whom Refunds Are To Be Given.
August 4, 2003... In the latest round of an ongoing lawsuit over fees charged for credit card purchases made overseas, Visa and MasterCard have told the California judge who told them to refund the fees that they cannot because they haven't retained enough...

N.J. CU Finds Members Have An Affinity For Chatting.
August 4, 2003... Chatting online with members is neither saving money nor time for Affinity Federal Credit Union, according to management at the $1.2-billion CU. But for the past 18 months the chat has gone on, currently at a pace of about 50 chats per...

Vendor Debuts Solution To Handle Non-Member Checks.
August 4, 2003... CU*Answers has developed a software product that its leaders say will give credit unions a running start toward capturing new members from consumers who use a credit union to cash a check. The new teller platform product is an addition to...

Near Sited: Scam Artists Are Creating Mimicking Financial Institution Websites And Ripping Off Consumers.
August 4, 2003... At first, Betsy Bozdech thought the message was legitimate. The e-mail that seemingly originated from a PayPal Inc. "Paysecurity" mailbox said her account with the payment service provider was under review because of inactivity and asked her to...

CUs Sign On With USERS.
August 4, 2003... USERS Inc., a unit of Fiserv, Inc., said that three more credit unions are converting to its DataSafe system. Among those converting are the $124-million U.S. First FCU in San Francisco, the $76-million Community First Credit Union in...

CU*Answers, Fuze In Agreement.
August 4, 2003... CU*Answers, a CUSO that serves approximately 125 credit unions, has formed a strategic partnership with Fuze Digital Solutions to use the Fuze Q&A Suite internally and to re-sell Fuze MemberLink to its credit union customers. "By allowing...

Creditcommander.com Updated.
August 4, 2003... 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 collections service is yet another tool for...

4 More CUs Sign Up For PayLynx.
August 5, 2003... Four more credit unions are adding PSCU Financial Services' online bill payment product, PayLynx, to their menus. Adding the service are Publix Employees FCU of Lakeland, Fla.; Weyerhaeuser Employees' CU of Longview, Wash.; Justice FCU of...

Technicost, Zero Attrition Agree.
August 5, 2003... Technicost and Zero Attrition have entered into a partnership. The partnership involves providing Zero Attrition's Enterprise Solution Suite, which helps credit unions perform automated decisions on financial products and services, as a...

CUSO, Digital Mailer In Deal.
August 5, 2003... Paragon Services, the CUSO of Paragon FCU, has signed with DigitalMailer to add the company's digital communication products to the list of e-Services the CUSO offers to its credit union clients. Under the marketing alliance, DigitalMailer...

Access To FICO To Be Granted.
August 5, 2003... Factual Data Corp. and Fair Isaac Corp. announced an agreement to create services for Factual Data customers that provide new access to expert analysis of their applicants' FICO credit risk scores. The companies said that selected Factual Data...

Mortgage Solution Is Updated.
August 5, 2003... Mortgage Software Solutions has launched a new client/server version of The Mortgage Solution its loan origination, tracking and closing system for credit unions. "The Mortgage Solution's client/server version is designed to scale-up to a...

Prepaid Phone Recharge On ATMs.
August 5, 2003... PaySpot, Euronet's U.S.-based prepaid phone recharge program, has gone live on Triton ATMs . PaySpot enables consumers to purchase wireless airtime from Triton ATMs throughout the United States. "This addition to the ATM vastly increases...

Plan Is Forwarded To Create Voluntary Standards To Foster E-Signatures.
August 5, 2003... Jerry Buckley and David Whitaker advocate a plan to encourage the use of electronic signatures, a plan that sticks out like a leisure suit amid the pro-regulatory policies now in fashion. Lawyers in the Washington office of Goodwin Procter...

What To Know Before Rushing Into Business Services.
August 5, 2003... It started as a tiny whisper. Then, the chatter increased. Some credit unions even started converting their charters. Gradually and without much fanfare, it's advanced to a widespread movement: the quest to attract commercial accounts. ...

Wealth Management: What The Buzz Really Means.
August 5, 2003... Everywhere you turn within the financial world today, you can listen to PhDs and financial consulting "experts" preach on the topic of "wealth management." Using buzz terms like time horizon, diversification, asset allocation, portfolio...

Unhappy With Results, AFCU Alters Indirect Loan Plan.
August 5, 2003... In an attempt to slow growth of members acquired through indirect auto financing, Affinity Plus Federal Credit Union has restructured its strategy. The credit union has informed the 100 auto dealers participating in its "CU Save" program...

Two CUs Join Banks In Small Business Venture Fund.
August 6, 2003... When you think of venture capitalists, credit unions don't typically come to mind. But two local credit unions here are seeking to change that. Sunmark FCU and State Employees FCU have joined with nine banks at the Schenectady Community...

Worth Noting.
August 6, 2003... Radebaugh Named NC CUL CEO GREENSBORO, N.C. John Radebaugh, president of the New Mexico CU League, has been named to succeed Larry Johnson as president and CEO of the North Carolina CU League. Johnson plans to retire in October after 25...

Successful 'SimpliCD' Program To Be Merged Into A Larger CUSO Plan.
August 6, 2003... Corporate One FCU has agreed to merge its successful SimpliCD brokerage program into a new CUSO organized by 28 other corporates and U.S. Central Credit Union that will broker CDs to natural person credit unions. Under the deal, Corporate...

Check 21 Bill Is Hailed, But Many See Big Issues.
August 6, 2003... Financial services executives like to call Check 21 the legislation that will finally let banks and credit unions start exchanging images of checks. But the reality is far narrower. Neither the House nor the Senate versions make much...

A Question Of TAXES: Banks Continue To Cry Foul Over The Credit Union Tax Exemption At The Same Time An Increasing Number Are Taking Aggressive Steps Not To Pay Taxes Themselves.
August 6, 2003... Banker arguments that credit unions enjoy an "unfair" competitive advantage because of their tax status begin to fall apart when they are viewed in the context of the banking industry's drive to avoid paying its own fair share of taxes. ...

Looking For Work? Then NCUA Is Looking For You.
August 6, 2003... Americans looking for work should consider a job at the federal regulator of credit unions. In remarks before NCUA's biannual supervisory conference here, National Credit Union Administration (NCUA) Chairman Dennis Dollar pointed out that...

Working But Not Getting Paid? CU Ready To Help.
August 6, 2003... California Bear Credit Union said it is now prepared to grant paycheck loans for California state employees in the event payroll is delayed due to the ongoing budget impasse. Paycheck loans will be offered in an amount equal to the employee...

The Cradle of Credit Unions: Better Known For Its Role In The American Revolution, Boston Is Also The Birthplace of The American Credit Union Movement.
August 6, 2003... Boston is known worldwide as the cradle of American liberty, but few realize Boston, more than any other city, gave birth to the America's credit unions. Indeed, if one looks carefully, not far from where tens of thousands of tourists...

Worth Noting.
August 6, 2003... More Credit Unions In Mergers HARRISON, Ark. The members of Millbrook FCU have voted to merge with Telcoe FCU. The $143-million, Little Rock, Ark.- based Telcoe FCU has 17,500 members. Meanwhile, in Canton, Ohio, T&C Credit Union has...

An Examination of The Forces Driving Change In Credit Unions...
August 6, 2003... Dramatic changes have taken place in the financial services industry in the United States over the last quarter century. This has been the era of deregulation in financial services and it has dramatically affected every institution operating...

Made To Walk In The Shoes Of Members, Credit Union Representatives...
August 7, 2003... Quick go up to the first stranger you come across and introduce yourself. Then tell them how much money you make and what your credit card balance is. Feel a little uncomfortable? Well, that's exactly how your members can feel every time...

Presence Of A CUSO Plays Big Role In Credit Union CEO Compensation.
August 7, 2003... As credit unions increasingly expect more from their executives, in the form of higher levels of education and the ability to manage much more complex institutions, those executives are also coming to expect more from their credit unions, as...

Analysis Finds Many Bank CEO Payments Out Of Line With Performance.
August 7, 2003... The total direct compensation for CEOs fell at 20 of the 22 largest financial services firms in a survey conducted by American Banker. Proxy materials from the 22 companies yielded one case in which compensation rose while return on equity...

NAFCU Stands Ready To Help Non-Savers To Save.
August 7, 2003... It is the same number of Americans who live in big cities, the same number of Americans who don't get to the dentist at least once a year and the same number of Americans who go online regularly at work. It is one-third of Americans, and it is...

Setting The Record Straight On Events.
August 7, 2003... I wanted to follow-up on the mentions of Online Resources inThe Credit Union Journal Daily (www.cujournal.com). I appreciate The Journal's reporting of my company's financial progress and our sales success. The credit union community is...

CU at the Game: The Move To Community Charters Has CUs Pitching New Ways To Get The Name Out.
August 7, 2003... Many credit unions are looking beyond their traditional sponsors or fields of membership to their communities in an effort to attract new members. As a result, these CUs have been put in the unfamiliar position of selling themselves to an...

Some Report Confusion Over CuLeague.Com Website.
August 7, 2003... A website offering training to credit union leaders via the Internet has no connection to the Indiana Credit Union League, despite its website address, www.CuLeague.com, and its solicitations to ICUL-member CUs. The Indiana league has...

Community Page.
August 7, 2003... P&GMEFCU Holds Grand Opening P&G Mehoopany Employees FCU cuts the ribbon at the grand opening of its new branch office in Wyalusing, Penn. WFFCU Donates To Public Library CHARLTON, Mass. Webster First Federal Credit Union donated...

Credit Unions Join With Banks, Local Gov't. To Attack Elder Abuse Scams.
August 7, 2003... Nine credit unions in this market have joined with two banks and are working with Santa Clara County Adult Protective Services to train staff in recognizing signs that elderly members/customers are at risk of being defrauded of their...

Community Page.
August 7, 2003... RBFCU Awards $500 Scholarships SAYREVILLE, N.J. Raritan Bay Federal Credit Union awarded Erin Campbell, Patricia Norek, and Lauren O'Connell $500 scholarships. WFFCU Achieves 5-Star Rating WEBSTER, Mass. Webster First Federal...

Study Says Liberal CU FOM Policies Don't Affect Banks.
August 8, 2003... A new research study seeks to quantify the effects of field-of-membership regulations on the ability of banks to exercise pricing power in a market. Not too surprisingly, the study notes that "liberalized field of membership (FOM)...

Banks' Criticism of 'Mega' CUs Off-Base, Responds Exec.
August 8, 2003... The California Bankers Association is saying it has no beef with small credit unions. But it does plan to continue its efforts to tax what it is calling the "mega" credit unions, a spokesperson for the group told The Credit Union Journal. ...

Product & Service.
August 8, 2003... Alabama CUL Endorses JMFA BIRMINGHAM, Ala. C.U. Lending Products, Inc., the Alabama league's service corp., has signed an agreement with John M. Floyd & Associates, Inc. naming the profitability-consulting firm as its "Preferred Business...

Six Years After Renewal, League CEO Back In Line.
August 8, 2003... More than six years after the so-called Renewal Project, which sought, in part, to ease control over CUNA by the state leagues, a league president is scheduled to take over as CUNA Chairman this fall. Dick Ensweiler, president of the Texas...

Irked At CU Provisions, Banks Yank Bill Support.
August 8, 2003... The American Bankers Association said it won't support the omnibus regulatory relief proposal for banks and credit unions as long as the bill contains provisions that would allow federal credit unions to expand their chartering authority. ...

Freddie Mac Told By Congress To Expect Audit.
August 8, 2003... Federal regulators said last week they will launch a special audit of Fannie Mae, in light of the accounting scandal engulfing its secondary mortgage market sister Freddie Mac. Armando Falcon, chief of the Office of Federal Housing...

People.
August 8, 2003... NATIONAL The New York State Credit Union League, Latham, N.Y., elected to its board: John Gibardi, chair; Vicky Matteson, vice chair; Joseph Garay, secretary/treasurer; Patrick Calhoun, ex-officio; Lorrain Bourdeau, and Ann Sweeney. ...

Native-American Group Seeks Funds To Assist In Starting Up Credit Unions.
August 8, 2003... The National American Indian Housing Council has applied to the Ford Foundation for a grant to pay for technical assistance for Native groups that want to start credit unions. NAIHC and two other groups used a previous grant from the Ford...

Consumer Groups, Banks & Payday Lenders Square Off Over Guidelines.
August 8, 2003... Three years ago Federal Deposit Insurance Corp. Chairman Donna Tanoue became the first regulator to publicly slam banks that "rent" their charters to payday loan companies, letting them circumvent state consumer protection laws. Fast...

Gallup Finds Electronic Options Haven't Dampened Enthusiasm For Branch.
August 8, 2003... A recent survey by the Gallup Organization offers further evidence that the popularity of automated teller machines and online banking has not dampened enthusiasm for branches. Eighty-three percent of the 1,011 adults contacted by telephone...

The CUJ Daily.
August 11, 2003... Realtors Beat Back Bankers WASHINGTON The powerful Realtors lobby appeared to defeat efforts by the banks to enter their business with approval of a legislative rider last week that would ban banks from the real estate business for the...

California League Forms New Latino Network.
August 11, 2003... The California CU League has created a new Latino Network. The professional network is aimed at allowing credit union leaders to share information and best practices on meeting the needs of the state's growing Hispanic population, the league...

Members Get Extra Payday For Tales Of Wasted Money.
August 11, 2003... Three members of Sunmark Federal Credit Union were awarded extra paychecks as part of its "Win an extra payday with Sunmark and Direct Deposit" promotion. Wendy Kennedy, Fred Randall, and Gene Hinkle, all Capital District residents, won an...

Liberty Debuts More Ways To Fight Fraudulent Checks.
August 11, 2003... Liberty has introduced new solutions aimed at fighting check fraud and identity theft, unveiling the EZShield Check Fraud Protection Program and The Premier Pack with Personal Identity Theft Protection. The EZShield Check Fraud Protection...

CU Ready With 0% Loans In Event Of Missed Paydays.
August 11, 2003... California Bear Credit Union said it is now prepared to grant paycheck loans for California state employees in the event payroll is delayed due to the ongoing budget impasse. Paycheck loans will be offered in an amount equal to the employee...

Security Service Gets OK As SBA-Approved Lender.
August 11, 2003... The U.S. Small Business Administration (SBA) said that Security Service Federal Credit Union has become the latest credit union to be approved as a participating lender in the SBA Loan Guaranty Program. "We look forward to receiving many...

Undercoating Anyone?
August 11, 2003... When I went to get cash from a nearby bank the other day at lunch, I discovered that the ATMs in the lobby had been Sheetrocked over as part of a major renovation. I followed the crowd to the rear of the branch where temporary machines had been...

Banks Could Capture Mass Affluent, Survey Says.
August 11, 2003... Banks are positioned to corner the mass-affluent market, said PricewaterhouseCoopers, as other wealth managers pursue the ultra-wealthy and ignore investors with less than $500,000 of assets. The firm's 2003 Global Private Banking-Wealth...

Rants and Raves.
August 11, 2003... Community Bank Rankings Could you please advise me as to the data criteria USB uses for the "Top 200 Community Banks" (July 2003)? Bridge Bancorp trades on the OTC Bulletin Board. Is this considered publicly traded? If it is, why was...

Why Rankings and CEO Styles Mesmerize Execs: Those who don't fess up to following such things are either not concerned with performance metrics or are simply fibbing. My guess is it's the latter.
August 11, 2003... Corporate America's fascination with rankings and CEO management styles is a curious thing. Most executives are mesmerized by one or the other-or both. And those who don't fess up to following such things are either not concerned with...

3 More Sign With Business Services CUSO.
August 12, 2003... CU Business Group LLC, the business services CUSO owned by three corporate credit unions, has signed new CU clients in three states. Signing on with the company are Patelco CU and Steinbeck CU in California, Potlatch No. 1 FCU in Idaho, and...

Community One Intro's 10-Year Mortgage.
August 12, 2003... The $153-million Community One FCU has introduced a fee-free, 10-year mortgage it is urging members to consider, as it saves thousands of dollars over a traditional 30-year term. In addition to no fees, there are no closing costs, and the...

More Than 300 Turn Out For 50 Plus Festival.
August 12, 2003... More than 300 members of Commonwealth Credit Union turned out for its third annual 50 Plus Festival. Many also brought family members with them. The event was moved indoors due to rain, as were all related activities, including free food....

Idaho CUs' Food Drive Covers 'The Blue'.
August 12, 2003... A food drive sponsored by several Boise credit unions and a local radio station brought in 106,000 pounds of food and $11,000 in cash donations for the Idaho Food Bank. The goal of the "Cover the Blue" food drive, the brainchild of KQFC...

First Entertainment, Paramount In Merger.
August 12, 2003... First Entertainment Credit Union, which serves employees of the entertainment industry, said it has completed the absorption via merger of Paramount Studio Employees FCU. In the process, the $450-million First Entertainment has added a tenth...

Large-Print Type Offered To Older Members.
August 12, 2003... Denali Alaskan FCU said it will begin offering large-type statements to members who have problems reading their monthly statements. The new statements are being offered through a partnership with its statement printer, Alaska laser Printing...

Insurers Plan to Drop Excess-SIPC Coverage.
August 12, 2003... A move by several insurance companies - including AIG Group's National Union Fire Insurance, Travelers and Radian Guarantee Financial - to withdraw from writing excess-SIPC coverage has drawn industry-wide attention to an issue that may elicit...

New Products.
August 12, 2003... Franklin Templeton Investments Franklin Templeton has launched the Mutual Recovery Fund, a closed-end fund investing in debt and equity instruments of bankrupt and distressed companies, as well as undervalued stocks. Templeton also has...

Money Fights: How Much is Too Much?: A million here, a million there...
August 12, 2003... Calpers, The market-moving pension fund covering California's government workers, is turning up the heat on companies that overpay the suits. And even though it's mum on possible suspects, Citigroup is singled out by other industry watchdogs...

Web innovation: Banks Have Far to Go on Accessibility for the Blind: Wells' new Web site puts it at the forefront.
August 12, 2003... While big banks are making strides to become more accessible to the blind by rolling out talking ATMs and Braille and large-print materials, most banks make it nearly impossible for them to manage their finances on the Internet. Wells Fargo and...

Etched-Glass Mural Tribute To FOM.
August 13, 2003... Firefighters CU President Kenny Hansome said the new view from his office is "fantastic" thanks to a large etched glass window that overlooks the main pathway for members to conduct transactions. The artwork was part of a $1-million...

Bank Execs Pay Diverted To CU.
August 13, 2003... Three individuals, including one who worked for a company providing payroll services to Bank of America, have been charged with diverting more than $800,000 in pay from three BofA executives and depositing it in an account at Charlotte Metro...

Debate Over CU Tax Exemption Set For Nat'l Council Of State Legislatures.
August 13, 2003... A credit union representative is scheduled to face-off with a prominent banker nemesis this week before the National Conference of State Legislatures, as a prelude to a new assault on credit unions' tax exemptions. In what is expected to...

New Mexico Legislature May Mull Plan To Apply Sales Tax To State CUs.
August 13, 2003... Credit unions here, fresh off a successful campaign to defeat a bank-backed state income tax intitiative, are facing the specter of a new tax fight as members of a state commission on tax reform prepare recommendations for a special fall...