Credit Union Times Magazine May-17, 2000

  • MEMBERS Development Company's initial projects may be tech-oriented

    CHICAGO - MEMBERS Development Company, LLC is starting to narrow its focus. MEMBERS Development Company was formed earlier this year by a group of 31 credit unions, six CUSOs and CUNA Mutual, to bring strategically important products to market in the credit union industry. The company, which is majority-owned (51%)...

  • NCUA privacy rule passes over Wheat's objection, amendment stirs protest

    ALEXANDRIA, Va. - NCUA Board member Yolanda Wheat unexpectedly teamed up with her longtime rival Chairman Norman D'Amours at a special board meeting May 8 to toughen a draft agency privacy rule that eventually passed 2-1 over Wheat's continued objection. In the end credit unions were treated to a new...

  • NCUA warns credit unions of identity theft threat

    ALEXANDRIA, Va. - NCUA doesn't want identity theft sneaking up on credit unions. The credit union regulator recently participated in a National Summit on Identity Theft sponsored by the Federal Trade Commission, and then quickly turned around and offered credit unions "best practices" guidelines to protect their members. Some of...

  • LaFalce introduces Consumer Financial Privacy Act

    WASHINGTON-Financial privacy is now a full-fledged presidential campaign issue. Following the Clinton administration's lead and steeled by Treasury Under Secretary Gary Gensler's recent remarks that financial and medical privacy is of the utmost importance to consumers, Rep. John LaFalce (D-N.Y.) introduced the "Consumer Financial Privacy Act on May 4. The...

  • Empire Corporate FCU is first corporate to Hike-the-Hill

    WASHINGTON - Empire Corporate FCU recently completed the first Hike-the-Hill visit by a corporate credit union. Members of Congress have grown accustomed to meeting credit union people via CUNA's Hike-the-Hill program (there have been 21 such visits to date), but this is the first time a corporate has taken part...

  • Credit union IT professionals successfully battle the "Love Bug"

    WORLD WIDE WEB -Not surprisingly, the credit union industry, like most industries, was hit by the now infamous "Love Bug" that may have affected some 10 million e-mail users around the globe. For all of the Web's touted benefits-speed, open access, an instant delivery channel (and a cheap one)-there's a...

  • Credit unions' joint center aimed at serving the underserved

    WINSTON-SALEM, N.C. - In an effort to rebuild a community's business sector, Truliant Federal Credit Union, in partnership with Victory Masonic Mutual Credit Union opened a joint branch Community Credit Union Center within the 5 Star Supermarket in Waughtown. The in-store branch located in King Plaza Shopping center opened its...

  • D'Amours promises federal CU's speedier action on SEGs

    SAN DIEGO - Reacting to concerns about the time it takes the National Credit Union Administration to deal with select employee group applications, chairman Norman D'Amours has announced plans to streamline the process throughout the nation. "I'm going to instruct my staff. to look to see nationally what kind of...

  • Oregon Federal Credit Union helps out at education center

    COQUILLE, Ore. - At the intersection of social science and financial education stands Michelle Nicolaus, a financial service representative for Oregon Federal Credit Union. Nicolaus' office is now at the Southwest Oregon Com-munity College's Newmark Center, a one stop shop for teaching life skills to welfare and jobless benefits recipients...

  • White Paper addresses e-commerce development

    DALLAS - Like the prolific Japanese kudzu vine, the "Es," e-commerce, e-mail and e-tail (Internet retail business), are winding their way around America. According to International Data Company, 180 million Americans will be on-line by 2004, a 118% increase from 1999. Even so, some credit unions are still reluctant to...

  • Satirical twist on "Blair Witch" film makes Spectrum FCU's "Dare Switch" a winner

    SAN FRANCISCO- In 1999 a low-budget, independent film, "The Blair Witch Project", was promoted on the Internet, grossed millions and had movie studios rethinking their film promotional strategy. In 2000 Spectrum Federal Credit Union's one person marketing department Vice President Van Dyke Roth spent only $2,750, won the prestigious "Best...

  • "Lock It To Stop It" campaign prevents tragic headlines

    CHARLOTTE, N.C.- In the emotionally charged and often volatile political debate over gun control, opposing sides can at least agree on one point-children need to be protected from themselves. For the past two years Charlotte Metro Credit Union, in partnership with the Mecklenburg County Sheriff's Office, has been selling gun...

  • Mutual funds now collateral at Federal Home Loan Bank of San Francisco

    WASHINGTON and SAN FRANCISCO-The Trust for Credit Unions Government Securities Portfolio and Mortgage Securities Portfolio- the first mutual fund family designed specifically to meet the needs of credit union investors- has passed the vigorous test of the Federal Home Loan Bank Board of San Francisco and is now approved for...

  • Billion-Dollar Credit Unions And Their CUSOs - Part 2

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  • P&SFCU members march on NCUA headquarters

    ARLINGTON, Va. - Amid the lobbying and political maneuvering on Capitol Hill in both houses on the pending bankruptcy legislation comes some good news: the 1999 delinquency rate of 1.16% on consumer loans is the lowest reported composite delinquency rate for the last seven years. The data was the highlight...

  • NCUA selects AFTECH for DP services

    MALVERN, Pa. - Credit union data processor AFTECH, a Fiserv subsidiary, said it has been selected by NCUA to provide data processing services for the regulator's Asset Liquidation Management Center in Austin, Texas. The Austin-based unit manages the assets of credit unions that have failed, been placed in conservatorship or...

  • SEG expansions mirror last year's rate

    WASHINGTON - SEG expansion isn't growing or shrinking-it's the same. It's almost uncanny how consistent the rate of SEG expansion has been since the passage of The Credit Union Membership Access Act. SEG expansion for the first four months of this year is about the exact same rate as the...

  • Oregon throws out bankers' argument, implements credit union bill

    SALEM, Ore. - Almost one year after Gov. John Kitzhaber signed into law H.B. 3151, a new state credit union field-of-membership bill (CU Times, July 28, 1999), the state Department of Consumer and Business Services last week released a report on the final rule to implement the new law. In...

  • A virus, worm or Trojan Horse?

    WORLD WIDE WEB - Call a virus a virus, but not when it's a worm or Trojan Horse. Often any destructive code sent over the Web is dubbed a virus. But people who make their living in this arena, differentiate between viruses and what's known as worms and Trojan Horses....

In Other News

  • BRANCHING OUT

    San Diego County Credit Union, has announced the grand opening of its newest branch located in the Eastlake Village Shopping Center. SDCC has assets over $1.2 billion and serves 120,402 members. Royal Credit Union, Eau Claire, Wis., will be relocating its employee development and training center to the Farmers Store...

  • AWARDS

    Chaco Credit Union, Hamilton, Ohio, has received the Dora Maxwell Award for its outstanding community involvement work. This state award is given to the one credit union that best accepts its duty of social responsibility and practices the philosophy of "people helping people." Some of the community involvement projects included:...

  • DONATIONS

    UT Federal Credit Union, Knoxville, Tenn., has donated $10,051 to the general scholarship fund of the University of Tennessee, Knoxville and $1,200 to the general scholarship fund at Pellissippi State Technological College and University of Tennessee, Martin as part of the Campus Support Program. The program provides scholarships to UT...

  • MILESTONES

    Cornerstone Federal Credit Union, Carlisle, Pa., has ranked first in Pennsylvania, ahead of 91 peer credit unions, in the $20 - $50 million asset category of Callahan's Return of the Member Index. This index measures members' use of the credit union. Berrien Teachers Credit Union, St. Joseph, Mich., has been...

  • NAME CHANGES

    FAA Western FCU, Los Angeles, has changed its name to FAA First Federal Credit Union. FAA First FCU has $180.5 million in assets and serves 25,055 members. Atlantic Fleet Federal Credit Union, Norfolk, Va., has changed its name to @LANTEC Financial Federal Credit Union. @LANTEC Financial FCU has $63.7 in...

News

  • Georgia CU Affiliates third league to sign on to Cavion.com's eDraft

    COLLEGE PART, Ga. - In the second phase of a three-stage image-enabling program, Cooperatives Services Inc. (CSI), the CUSO for Georgia CU Affiliates has signed with cavion.com to offer the company's electronic share draft processing and check imaging services, eDraft, to its member credit unions. CSI processes nearly 8 million...

  • Special Report: Share Draft & Item Processing

    Checks will continue to dominate the U.S. payment system for at least the next 10 years, predicts the Check Payment Systems Association in Washington. Despite the growth in volume for check alternatives such as point-of-sale debit cards and ACH, check volumes are growing at a moderate rate of 1-3% annually....

  • Definition of predatory lending a moving target, says NASCUS

    ARLINGTON, Va. - Most financials and state and federal regulators agree predatory lending exists and is widespread, but measuring the prevalence of the abusive practice is proving to be more difficult to ascertain. The definition of predatory lending is in the eye of the beholder, NASCUS officials wrote in a...

  • Wheat voices support for credit union privacy initiative

    SPRINGFIELD, Mo.-Only days before she would cast her "No" vote on the privacy regulation before the NCUA board, Yolanda Wheat broke her silence on the subject before a 300-member audience of the Missouri Credit Union League here. Saying that credit unions have been and continue to be responsible protectors of...

  • Wisconsin DFI sets up task force on financial competitiveness 2005

    MADISON, Wis. - Secretary Jack Kundert of the Wisconsin Department of Financial Institutions has announced the creation of a "Task Force on Financial Competitiveness 2005." As outlined in his order, "The mission of the task force shall be to analyze the needs of Wisconsin's financial institutions and services and make...

  • SHAME ON YOU

    Wisconsin Senate takes the rap for not passing landmark financial omnibus bill...................................................Page 12

  • FASTER AND EASIER

    NCUA Chairman Norm D'Amours has promised to streamline the process for FCUs to add SEGs..........................Page 16

  • Paper checks' popularity shows no signs of let up

    WASHINGTON - Considering the alarming rate of bankruptcy filings, it would be understanding to assume that credit cards have overtaken the lead as consumers' preferred method of non-cash payment. Statistics are not only proving otherwise, paper checks continue to dominate the volumes of non-cash transactions and are forecasted to remain...

  • Pennsylvania CUL members vote to allow league to set membership dues

    HARRISBURG, Pa. - The Pennsylvania Credit Union League has joined the ranks of only a handful of leagues throughout the country allowed to set membership dues. Delegates at the 66th Annual Meeting of the PCUL held last week voted in favor of the bylaw amendment, because said one delegate, "It's...

  • NASCUS meets with visiting delegation from China to talk CUs

    ARLINGTON, Va. - NASCUS officials met with a nine-person delegation from China April 28 to discuss the U.S. credit union system. Five provinces in China are being used as test sites for the planning stages of a process that will eventually develop associations to represent Chinese CUs. Shown below are:...

  • Cornell FingerLakes CU continues SEG expansion

    ITHACA, N.Y. - Cornell FingerLakes CU, the first federal credit union in the state to convert to a state charter, is showing no signs of slowing down its pace of expanding its field-of-membership by taking in select employee groups. Originally chartered as a federal credit union to serve the employees...

  • Six more California FCUs file to convert to state charter

    SACRAMENTO, Calif. - Any suspicions there was a letup in sight for the exodus of federal credit unions in California to a state-charter were dashed last week. The state Department of Financial Institutions has accepted six more applications from federal credit unions to convert to state charters. The six credit...

  • Imaging solves one problem, but creates another

    EDEN PRAIRIE, Minn. - Credit unions that have traded in their old microfiche systems for high tech imaging systems are deservingly basking in their ability to retrieve and provide to members images of their processed shared drafts in a fraction of the time it used to take to search for...

  • FEDFCU's ATM service a blessing to members

    ORLANDO, Fla.-One of the state's smallest credit unions is offering its members one of the biggest financial conveniences. The $3.5 million Florida Episcopal Dioceses Federal Credit Union has launched ATM services to its 1,100 members. The inaugural card was presented to The Rt. Rev. John W. Howe, bishop of the...

  • Art lives at METRO Credit Union

    WARREN, Mich. - With its call to young artists, METRO Credit Union satisfied its members cultural needs by hosting the inaugural "Celebration of Student Art" event. Student artwork from Center Line, Fitzgerald, Lincoln, and Warren Woods Tower high schools were on display at METRO CU from April 18 to May...

  • Wisconsin DFI chides state Senate for failing to pass omnibus financial bill

    MADISON, Wis. - Anger, shock, disappointment, disgust, all of the above. That was the consensus of reactions of representatives from the Wisconsin Credit Union League, the Wisconsin Bankers Association, the state Department of Financial Institutions and Gov. Tommy Thompson to the last minute curve ball thrown by the state Senate...

  • Leagues, NASCUS weigh in on NCUA privacy rule

    ARLINGTON, Va. - CUNA and NAFCU aren't the only associations NCUA Board members have heard from on the agency's recently passed privacy regulation. One day after the NCUA board approved by a 2 to 1 vote new privacy regulations mandated by the Gramm-Leach-Bliley Act (see related story page 1), credit...

News Briefs

  • Credit unions score well in Consumer Reports survey

    NEW YORK - Most people turn to Consumer Reports when they're going to buy a car or a major appliance-but now they can visit the popular consumer magazine for financial services advice. In its June issue the magazine, scheduled to hit newsstands May 16, is going to publish a story...

  • Arkansas FCU joins CU Service Corporation

    JACKSONVILLE, Ark. - Arkansas FCU's Board of Directors has voted to join the Texas Credit Union Service Corp. (CUSC). As a result of the board's decision, AFCU's more than 50,000 members will be able to access their credit union in 25 states at more than 450 shared-site facilities throughout the...

  • CU Big Leaguers meets at National Annual Roundtable Meeting

    PALM SPRINGS, Calif. - More than 100 representatives from credit unions, leagues, corporates and credit union associations met May 7-9 here for the 19th Annual National CU Roundtable Meeting. Of the 112 attendees, 71 were credit union or corporate CEOs, with the bulk of the other attendees coming from credit...

  • VolCorp elects board members

    BRENTWOOD, Tenn. - At its recent annual meeting, the $584 million Volunteer Corporate Credit Union (VolCorp) elected its new board members. Wayne Hope, president/CEO of K-25 Federal Credit Union in Oak Ridge, Tennessee, was elected chairman. Hope has been a VolCorp Board member for three years. The board also elected...

  • NACUSO conference sign of the times

    LAS VEGAS - If the attendance for NACUSO's annual conference is any indication, credit unions are concentrating more on CUSOs. Acknowledging a new era for credit unions and CUSOs, NACUSO President Bob Dorsa this morning convened the trade association's largest meeting-consisting of some 400 attendees from around the country. "This...

  • Dateline Washington

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  • Reps. Leach, LaFalce introduce Internet gambling legislation

    WASHINGTON - Hoping to put a dent in the practice of gambling on the Internet, Reps. Jim Leach (R-Iowa), chairman of the House Banking and Financial Services Committee, and John J. LaFalce (D-N.Y.), ranking committee member, have introduced legislation which would prohibit the use of credit cards, checks or electronic...

Tech Bytes

  • MembersResources.com adds "Members Mall"

    MILFORD, Conn. - The portal business is turning into big business in credit union land. MembersResources.com, a credit union portal site that features a revenue sharing plan with CUs for any online member purchases, has just unveiled its "Members Mall" component. Members Mall provides members with an online arena to...

  • SWBC updates FocusNet

    SAN ANTONIO - Southwest Business Corporation recently released the second version of its FocusNet product, an Internet solution that gives customers online access to a number of insurance-related research tools. According to SWBC, approximately 200 financials are utilizing FocusNet. Focus Net II features new management and administrative tools, including quick...

  • The bigger the CU, the more Web services

    Put simply, the bigger the credit union, the bigger the Web presence. As shown here almost all credit unions (95.9%) with assets over $250 million have a Web presence and 65.1% of those CUs offer Net banking. Still, no asset range is too strong in bill payment. While 43.8% of...

  • Consultants' Corner debuts on Callahan's site

    WASHINGTON - Callahan & Associates' Web site (www.creditunions.com) now has its own "online" lineup of industry experts. The Washington D.C.-based credit union research firm has unveiled "Consultants' Corner" on its site. Consultants' Corner features eleven credit union experts who are knowledgeable in a number of key credit union areas, including...

  • CheckFree rides wireless wave

    ATLANTA - Wireless continues to be the buzz in the financial services industry. Bill pay giant CheckFree and WebLink Wireless Inc., a nationwide wireless data service provider, announced an agreement that allows WebLink Wireless customers to pay their wireless data bills online via CheckFree's E-Bills electronic billing and payment service....

  • eMiser.com and iwayloan.com team up for online mortgages

    HOUSTON - iwayloan.com, a consumer direct online mortgage lender, and eMiser.com, a Web design and hosting firm for credit unions, have formed an alliance to provide mortgage solutions to eMiser credit union clients. Using iwayloan.com, CU members can now apply for a mortgage from a CU's Web site and receive...

  • CUshopper's 1,000th CU client

    BURBANK, Calif. - Marti Holmes (left), Regional Services Manager for CUShopper presents the 1,000th credit union client plaque to Bob Podzikowski, President/CEO, Detroit Federal Employees Credit Union. CUShopper is an online member shopping network that allows members to purchase big-ticket consumer items, and gives the credit union the chance to...

  • Infrastructure is biggest barrier to smart cards in U.S.

    MOUNTAIN VIEW, Calif.- Will smart cards ever take off in America? Europe has been using smart cards for some time now in a number of different areas, including health identification, banking and grocery shopping, but the U.S. has been on the slow track when it comes to the high-tech cards....

Briefs

  • Clarke American launches enhanced online check ordering product

    SAN ANTONIO, Texas - Reordering checks on-line through Clarke American has just gotten faster and easier. The company, a leading provider of checks and other products and services for credit unions, has enhanced its Internet-based check reordering process and renamed it. "Reorder No Change" now goes by "Check Reorder Express."...

  • Electronic transactions set records in 2000 tax filing season

    WASHINGTON - The Internet Revenue Service saw a record number of electronic transactions-returns, refunds, payments and contacts-in the just-concluded tax filing season. Nearly 7 million e-filing taxpayers took advantage of digital signature options to eliminate sending any paperwork to the U.S. In addition, the IRS reported that more than 27...

  • Congress to introduce President's `First Accounts' initiative

    WASHINGTON - At press time, Sen. Paul Sarbanes (D-Md.) and Rep. John LaFalce (D-N.Y.) plan to introduce in Congress the week of May 8 legislation enacting the First Accounts initiative proposed by President Clinton earlier this year. The announcement was made May 8 by Treasury Secretary Lawrence Summers in his...

  • NACHA to develop e-commerce payment rules by the fall

    LOS ANGELES - NACHA - The Electronic Payments Association plans to develop operating rules and best practices for Internet transactions that use the Automated Clearing House (ACH) Network for payment. The association hopes the initiative will lead to the greater use of the ACH Network as a payment method for...

  • Utah CUs enhance check imaging services

    OREM, Utah- The future is now for three Utah credit unions. Beginning this month, Deseret First CU, Salt Lake City, Utah Central CU, Salt Lake City, and Family First CU, Orem, in partnership with Rocky Mountain Corp. and SOS Computer Systems, a provider of management information systems for CUs, are...

Letters to the editor

  • Regulator, regulated should be independent

    Mike Welch misses the mark in his May 3 column, "Better way needed to appoint NCUA Board Members. When the federal credit union community decided it wanted to be regulated by an independent agency, the die was cast and the federal credit union community accepted the reality that the selection...

  • Way to go, CUs!

    I'm a new CEO with a 42 year old credit union that is $148 million in assets and has 26,000 members. I'm also new to the credit union industry, having come straight from 15 years in community banks in our region of the Bay Area in California, and five years...

Opinion

Publisher's Column

  • Harassing Mica won't eliminate predatory lending

    Predatory lending is a new name for the ancient practice of ripping off those who can least afford it. It's the kind of nasty business that helped spawn credit unions in the first place. It is diametrically opposed to everything credit unions stand for. No credit union person feels more...

People

  • EAST

    Empire Corporate FCU, Albany, N.Y., has appointed the following officers to its board: Niagra County FCU President/CEO Nancy Kasprzak-Whitmore, chairman; Sunmark FCU President/CEO Bruce M. Beaduette, vice chairman; Corning FCU President/ CEO David F. Bartone, treasurer; and United Nations FCU President/ CEO Michael J. Connery, Jr., secretary. First Commonwealth FCU,...

  • MIDWEST

    Wisconsin Corporate Central Credit Union, Hales Corners, has named Ross Schlinke business development representative. Wisconsin Credit Union League, Pewaukee, has named Candace Doyle publications specialist.

  • SOUTH

    Keys Federal Credit Union, Fla., has appointed Andy Griffiths and Sharon Moore to its board of directors. Community Educators Credit Union, Rockledge, Fla., has re-elected Eddie Thomas to its board of directors. Central Florida Educators FCU, Orlando, has elected the following to its board of directors: George P. Drivas; Joseph...

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