Credit Union Times Magazine October-02, 2002

News Briefs

  • Gov. Davis signs credit counseling consumer protection bill into law

    SACRAMENTO, Calif. - Gov. Gray Davis signed into law the weekend of Sept. 21, A.B. 2293 - the Non-Profit Consumer Credit Counseling Regulation Act. The new law takes effect Jan. 1, 2003. Among the provisions of the Non-Profit Consumer Credit Counseling Regulation Act, it: requires non-profit credit counseling agencies to...

  • Alternatives FCU makes a media splash with new facility

    ITHACA, N.Y. - The $42 million Alternatives Federal Credit Union became a temporary sensation in the local media when it consolidated two of its former structures into one newly built facility at Tompkins County's most prominent intersection. "We were featured in broadcasts on two local T.V. stations, a local radio...

  • A.M. Best, Fitch ratings in on CUNA Mutual

    MADISON, Wis. - The A.M. Best and Fitch ratings on CUNA Mutual are in and both list the company's outlook as "Stable". While A.M. Best has reaffirmed CUNA Mutual's A (Excellent) rating, Fitch Ratings has reclassified the CUNA Mutual Group to AA- (Very Strong), from AA (Very Strong). CUNA Mutual's...

  • FSCC pays $320,000 in dividends

    SAN DIMAS, Calif. -Financial Service Centers Cooperative, Inc., an international credit union shared service center network, has paid $320,000 in patronage dividends to shareholders. The cash payout came from acquired transactions performed in the last four and one half months of 2000. In March 2002, FSCC distributed a patronage dividend...

  • CO-OP network drops one in standings despite volume rise

    ONTARIO, CA - ATM and Debit News' annual survey of EFT volume has dropped CO-OP Network from fourth to fifth nationwide, even as the Network's transaction volume rose 24.6% for the year. According to the publication, CO-OP's monthly switch transactions totaled more than 48 million this March, compared with more...

  • Oxley: "Check 21" provides consumers with faster access to capital and credit, protects against fraud

    WASHINGTON - House Financial Services Committee Chairman Michael Oxley (R-Ohio), speaking at the opening of the hearing held by the House Subcommittee on Financial Institutions on the "Check Clearing for the 21st Century Act," also known as "Check 21," recognized the measure as implementing "the technological advancements made in the...

  • Security Service FCU rewards members for using share draft accounts

    SAN ANTONIO, Texas - Security Service FCU is rewarding its 460,000 members for using their checking accounts. The $2.5-billion SSFCU through its Member Checking Rewards account, which the credit union said is the first of its kind of any financial institution in the San Antonio market to offer, allows members...

Briefs

  • Socially responsible investment confab set for Oct. 17-20

    COLORADO SPRINGS, Co. - First Affirmative Financial Network (FAFN) and the nonprofit Social Investment Forum will host the 13th annual Socially Responsible Investing in the Rockies Conference, October 17-20. SRI in the Rockies will be held at The Broadmoor in Colorado Springs and is expected to draw over 400 professionals...

  • Patelco Credit Union aligns with CUSO Financial Services for investment program

    SAN FRANCISCO - Patelco Credit Union recently signed on with CUSO Financial Services, L.P. (CFS) for investment reporting, account maintenance and support and execution of trades. CFS will also provide consulting assistance for the recruitment of licensed financial representatives and for NASD compliance on Patelco's behalf. Scott Waite, Patelco's senior...

  • Underfunded defined benefit pension plans becoming more common

    YONKERS, N.Y. - Some 44 million workers in the United States have an additional asset to their "shrinking" 401(k) retirement accounts - a defined benefit pension plan, according to a recent Consumer Reports survey/article. In contrast to the 401(k), the defined benefit plan is the sole responsibility of the employer....

Looking Back

  • Credit Union Times Vol. 5, No. 40 October 5, 1994

    Looking back eight years ago finds credit unions' community involvement questioned at a House subcommittee hearing. CUNA and NAFCU argued the need for credit unions to have a CRA-exemption. Lobbyists in Washington questioned whether the no-room-for-negotiations strategy employed by both CUNA and NAFCU would work. "I don't understand it," said...

  • Benefits of sponsorship

    Curious about the benefits of America's CU Museum sponsorship? Here are the various levels: *Founders Circle: $100,000+ Conference/Museum Room Naming Conference Room VIP Privileges Mention in Video, Print Ads, PR Initiatives, Newsletter,Web site Recognition on Circle Plaque Stained Glass Reward Founders Lapel Pin *Benefactors Circle: $50,000 - $99,999 Exhibition/Transition Room...

  • As expected, Hunter to succeed Callahan at Patelco CU

    SAN FRANCISCO - The board of the $2.8 billion Patelco CU didn't see any reason to look outside of the credit union to find Ed Callahan's successor because they felt they had the talent already sitting in-house. The Patelco Board has selected Andy Hunter, who is currently serving as president/COO...

  • Kolatch gets high rankings at OCC

    WASHINGTON-The Office of the Comptroller of the Currency (OCC) announced the appointment of Barry Kolatch to Deputy Comptroller for Economic Research and Policy Development. Kolatch is scheduled to begin at OCC September 23 and will be responsible for economic and policy analysis and research on the performance of national banks....

  • NY CU Foundation encouraging youth to Speak Up!

    LATHAM, N.Y. - The New York Credit Union Foundation is not only reaching out to the state's youth but also providing a civics lesson to boot. Billed as "a mobile civic campaign", the Speak Up! NY tour kicks off with a CyberCar, which is a specially equipped "high tech" bus...

  • Bone wraps up first elected year in Volunteer position on Maryland League Board

    COLUMBIA, Md. - Some affiliated members of the Maryland Credit Union League voted against the idea two years ago of having a designated Volunteer position on the League Board, but Wesley Bone has set such an excellent precedent as the first volunteer to occupy the seat that the League Board...

  • Latino Community CU to partner with U.S. Treasury, USAID and Mexican CUs in major initiative

    DURHAM, N.C. - In a first-of-its-kind initiative to reach "unbanked" Mexicans on both sides of the border, Latino Community CU will announce on Sept. 27 a partnership with the U.S. Treasury, United States Agency for International Development, the World Council of Credit Unions and Mexican credit unions that will allow...

  • Canadian credit unions win national award for merger communications

    VANCOUVER, B.C. - Coast Capital Savings and Surrey Metro Savings credit unions and GPC International, a communications and public relations firm, were each awarded a Silver Leaf Award of Excellence for internal communications during the merger of Coast Capital Savings and Surry Metro Savings. Coast Capital Savings, the second largest...

  • California strikes a work/life balance for employees; credit unions now starting to assess what they need to do

    SACRAMENTO, Calif. - Governor Gray Davis hopes that by signing the highly debated SB 1661 or "paid family leave bill", employees here will be better able to balance their work and family needs. "Californians should never have to make the choice between being good workers and being good parents," said...

  • Matz cites CU examples in reaching unbanked; says credit unions can do a lot within the law to better serve this group

    SAN ANTONIO - At the Texas Credit Union League's Leadership Conference & Business Expo here last week, NCUA Board Member Deborah Matz urged credit unions to jump on the bandwagon in serving entire fields of membership. Citing efforts of specific Texas credit unions, Matz provided seven suggestions for reaching the...

  • Kentucky Credit Union looks to save $100,000 on E-product

    FORT KNOX, Ky. - Combining targeted marketing and employee incentives, Fort Knox Federal Credit Union is proving members will easily forgo mail for electronic statements, with yearly savings for the credit union on processing and postage expected to reach $100,000. That's the view of the CU's president and CEO, William...

  • MEASURING UP: GAO study attempting to quantify some gray areas, including how well CUs carry out their mission

    WASHINGTON - The General Accounting Office will be looking at credit unions and NCUA in a report to be unveiled next year. With the Enron's and WorldCom's existing in the American marketplace, citizens have questioned was the government asleep at the wheel and how do we prevent these types of...

  • Utah banks seen behind school revenue plan to tax credit unions

    SALT LAKE CITY - The state's banking lobby, locked in a long-standing and often bitter political fight with Utah credit unions, has apparently seized on the shortfall in funding Utah schools as a new reason to start taxing CUs. The banks' move, contends the Utah Credit Union League, comes in...

  • In what Sarbanes calls routine oversight, GAO set to study credit unions, NCUA

    WASHINGTON - The General Accounting Office will be looking at credit unions and NCUA in a report to be unveiled next year. With the Enron's and WorldCom's existing in the American marketplace, citizens have questioned was the government asleep at the wheel and how do we prevent these types of...

  • Municipal CU opens high-tech back-up facility; CU leaders say criticism of disaster recovery plan too harsh

    NEW YORK - From a technology standpoint, was Municipal CU's disaster recovery plan woefully inadequate to deal with a disaster? Was their IT department asleep at the switch? Heck no, says CEO Bill Porter who says he's tired of uninformed people criticizing the CU's preparedness. At press time as the...

  • International CU Day marks credit union history being made, preserved with America's Credit Union Museum

    MANCHESTER, N.H. - If America's Credit Union Museum Executive Director Peggy Powell has her way, the entire nation will know the story of how America's credit union movement came into its own. "We have this wonderful rich history about credit unions across the country but no one place to tell...

  • Divvying ownership for the greater drives XCU Capital Corp.'s mission, growth strategy

    CARLSBAD, Calif. - The notion of one credit union giving up the majority of its claim to a revenue-producing entity so that others may reap the benefits may seem a bit self-defeating but that's exactly what Xerox Federal Credit Union recently did. As part of an agreement with XCU Capital...

  • Credit union reports mixed response to payday lending effort

    WAUKESHA, Wis. - The $568 million Landmark Credit Union wants to offer an alternative to payday loans, but it is having a hard time selling the alternative loans, according to Pat Ransom, vice president of marketing for the institution. The community chartered credit union has offered an alternative to payday...

  • Colorado Chapter CUs join in business expo booth

    BOULDER, Colo. - On the premise that credit unions exert more marketing muscle in combination rather than operating separately, a group of Colorado CUs with aid from the state League, organized a successful promotion at a business expo here boosting the CU image and generating high traffic. "We were really...

  • Fast challenge to vehicle impoundment bodes well for New York lienholders, credit unions

    NEW YORK - A step in the right direction, as far as New York credit unions are concerned, the 2nd U.S. Circuit Court of Appeals has ruled that people accused of driving while intoxicated (DWI) can have a prompt hearing to challenge the seizure of their vehicles. Prior to the...

  • FHLB of San Francisco sees challenges facing first-time home buyers

    WASHINGTON - Prices are up and home sales brisk, but that bright picture has a dark side. As housing costs rise, many first-time buyers are finding it difficult to afford a home. The Federal Home Loan Bank of San Francisco, for example, notes that booming areas such as Phoenix, Las...

  • House Financial Services Committee briefed on"Check Clearing for the 21st Century Act"

    WASHINGTON - In what was considered a first step in providing basic education to House Financial Services Committee staffers on check truncation and electronification before Sept. 28's hearing on the "Check Clearing for the 21st Century Act," representatives from financial services organizations, including CUNA Assistant General Counsel Michelle Profit, and...

  • New York Council passes predatory lending bill

    NEW YORK - With its supporters crowding the Council chambers and after the New York Times editorialized in favor of it, the New York City Council passed an anti-predatory lending measure, setting the stage for a likely mayoral veto. The New York Times editorial in support of the measure read...

  • Nexstar Financial, Bear Stearns CUFS launch mortgage program

    ST. LOUIS - Nextstar Financial Corp., a provider of mortgage outsourcing solutions to banks, credit unions and other financials, together with Bear Stearns Credit Union Financial Services (CUFS), have developed a mortgage program - CUMACT Powered by Nexstar - for large credit unions that are involved with mortgage lending and...

  • CU Business Group LLC gets first CU partner

    PORTLAND, Oregon - CU Business Group LLC - a CUSO started by Northwest Corporate (and now also includes FirstCorp) to help CUs serve business accounts and make business loans - has signed its first credit union business partner in Cutting Edge FCU. "Even though we are not a large credit...

  • North Carolina League poll shows Dole has lead in U.S. Senate race

    GREENSBORO, N.C. - A poll commissioned by the North Carolina Credit Union League shows Elizabeth Dole, the state's Republican candidate for U.S. Senate leading Erskine Bowles, the front runner for the Democratic nomination, by 11 points - 52% to 41% - among likely November voters. The poll was conducted from...

  • Global Concepts study shows large financials' check volume dropping

    ATLANTA - One month after the Federal Reserve released revised and lowered estimates on earlier numbers concerning the number and value of checks written by consumers, a noted payment systems consulting firm Global Concepts has come out with numbers that confirm what the Fed's newest set of figures showed: check...

  • Duffy switches firms

    NEW YORK - Peter Duffy, a well-known investment professional with First Empire Securities, is leaving the company to join Keefe, Bruyett, and Woods, an investment banking/research firm based in New York. "It was a very hard decision. I had a lot of momentum at First Empire, but it got to...

  • CO-OP and Online Resources form marketing agreement

    ONTARIO, Calif. - The mega CU EFT network the CO-OP Network has entered into a marketing agreement with Internet solutions firm Online Resources to market the McLean, Virginia company's e-financial services to CO-OP member CUs. CO-OP currently has about 1,200 credit union members representing some 11 million cardholders, and is...

  • A New York, New York start to CUNA's Symposium

    NONE

  • Poland CUL gets ISO certification

    SOPOT, Poland - The National Association of Cooperative Savings and Credit Unions (NACSCU) in Poland has become the first financial institution organization in the country to qualify for the ISO 9001 certificate. The International Standards Organization (ISO) 9000 standard and its related standards, 9001 and 14,000, provide organizations with a...

  • Relationship pricing gaining in popularity among large CUs

    WASHINGTON - Nearly three-quarters of credit unions with assets of at least $50 million are either currently using relationship pricing or are planning or considering to the pricing strategy by 2004. The finding from Callahan & Associates' "Relationship-Based Pricing: The Rewards of Active Membership" study found that 37% of CUs...

  • Tight South Dakota Senate race remains key for CUS

    SIOUX FALLS, S.D. - That high profile U.S. Senate race between the incumbent, Democrat Tim Johnson and his GOP challenger, John Thune, has plenty at stake for credit unions, according to the South Dakota Credit Union League. "Right now it's still neck and neck with the two of them spending...

  • Australian credit unions warned on loan practices

    SYDNEY, AUSTRALIA - The Australian Prudential Lending Authority, the agency that regulates Australian banks and certain insurance firms, has warned Australian credit unions against lending practices which it said could put depositors' funds at risk. The authority complained that the credit unions had been financing up to 100% of some...

  • LaFalce promises to introduce CU-friendly bill

    WASHINGTON-Before leaving public life at the end of this congressional session, House Financial Services Ranking Member John LaFalce (D-N.Y.) told attendees of a luncheon at NAFCU's Congressional Caucus that he plans to introduce a bill to ease certain credit union restrictions. NAFCU presented LaFalce with a resolution thanking him for...

  • DCU, BIS form new insurance agency

    MARLBOROUGH, Mass. - Digital Federal Credit Union members now have access to a newly formed agency, DCU Financial Insurance Services. DCU has hired Springfield, Massachusetts-based Bank Insurance Service to provide turnkey insurance agency solutions to its subsidiary DCU Financial. "This is a significant partnership for DCU Financial," said Ed Crisci,...

Publisher's Column

  • Bank credo: do as we say, not as we do

    Banking industry lobbyists are a creative lot. They find a way to oppose virtually everything credit unions do. The only thing that would get bank trade group executives off the backs of credit unions would be the disappearance of credit unions from the American landscape. On the other hand, credit...

NAFCU

  • CU supporter says politics not the problem in bankruptcy reform

    WASHINGTON-Congressman Paul Kanjorski (D-Pa.), one of the original sponsors of H.R. 1151, typically favors credit union issues, but bankruptcy reform is not one of them. In fact, after his work with the credit unions, he has trouble getting the attention of the banking community, Kanjorski jested. The congressman said, "It's...

  • SBA and corporates caucus at Caucus

    WASHINGTON-The Small Business Administration (SBA) met with several credit union representatives to discuss areas where credit unions can become more involved in guaranteed-business lending and particularly how corporate credit unions can facilitate it. Delegates from NAFCU, CUNA, the Association of Corporate Credit Unions (ACCU), Empire Corporate Federal Credit Union, WesCorp,...

  • LaTourette emphasizes NCUA need to review FOM restrictions; reassures on bankruptcy reform

    WASHINGTON-Father of H.R. 1151, Congressman Steven LaTourette (R-Ohio) reemphasized the need for NCUA to utilize H.R. 1151's field of membership (FOM) provisions to the fullest extent intended by Congress. He sent a letter last week, also signed by Credit Union Membership Access Act (CUMAA) co-sponsor Paul Kanjorski, encouraging NCUA Board...

  • Frank applauds CU leaders coming to Washington

    WASHINGTON-In a speech to attendees of NAFCU's Congressional Caucus, House Financial Services second Ranking Member Barney Frank (D-Mass.) commended credit unions' grassroots work, as well as their everyday efforts to serve the masses. Frank is expected to become the ranking member of the committee, or possibly the chairman as the...

  • NSC partners with Prime Alliance as NAFCU/ Fannie Mae pact enters phase two

    WASHINGTON-Fannie Mae Vice Chair Jamie Gorelick announced last week that the alliance between NAFCU and Fannie Mae is moving onto stage two, which will help smaller credit unions participate in mortgage lending. NAFCU and Fannie Mae first announced their alliance in July during NAFCU's annual conference. Gorelick told attendees of...

  • Gekas encourages credit unions to continue `full court press' on bankruptcy

    WASHINGTON-At NAFCU's Congressional Caucus last week, Congressman George Gekas (R-Pa.), author of the bankruptcy abuse reform bill in the House, urged credit unions to continue their "full court press" lobbying efforts on behalf of the seemingly star-crossed legislation. Gekas is facing a tight race in his congressional district and the...

  • Johnson reminds CU officials they are the educators on eve of Hill visits

    WASHINGTON-As a former state senator, NCUA Board Member JoAnn Johnson told credit union officials not to be intimidated by meeting with lawmakers and their staff as they descend upon Capitol Hill during NAFCU's Congressional Caucus. "Believe me, you know more about credit unions than they do," she said in trying...

  • Studying up on NAFCU issues

    NONE

  • Oxley touts Reg Relief at Congressional Caucus

    WASHINGTON-House Financial Services Committee Chairman Mike Oxley (R-Ohio) encouraged credit unions that the fight has just begun in getting the Financial Services Regulatory Relief Act through the lawmaking process. Though Representative Shelley Moore Capito (R-W.V.) introduced the bill, Oxley has been the key player shepherding the bill, H.R. 3951, through...

  • Dollar focuses on change in Caucus speech

    WASHINGTON-NCUA Chairman Dennis Dollar hit on the theme of change in his speech to attendees of NAFCU's Congressional Caucus last week at the Grand Hyatt in Washington. Change, as he indicated, has generally served the credit union community well. In reviewing alterations to the credit union community in recent years,...

  • Bankruptcy conference chairman tells FCUs to keep up the drumbeat on the Hill

    WASHINGTON-The message credit unions need to continue on the Hill with regard to bankruptcy reform is simple, according to Judiciary Committee Chairman Jim Sensenbrenner (R-Wis.): "We want a law." He also serves as the bankruptcy conference committee chairman. "After five years of considering bankruptcy, the time has come to enact...

  • Treasury's new financial education official explains agency's efforts

    WASHINGTON-Treasury Financial Education Deputy Secretary Judy Chapa told attendees of NAFCU's Congressional Caucus last week that the increasing complexity of the financial services market breeds a greater need for financial education to understand all available financial services options. "It means that Americans need to be fully prepared and financially educated...

News

Opinion

  • Retirement nest egg cracks call for increased financial planning

    How Since the beginning of the last century, how Americans planned for their golden years has changed drastically since the beginning of the 20th century. . Before the implementation of the Social Security Act of 1935, Americans who wanted to live comfortably needed to systematically put money away most often...

Letters to the editor

  • ICU Day spirit alive and well

    I was interested to read Mike Welch's take on International Credit Union Day and the lack of enthusiasm many in our movement show ("Hired guns, single sponsors, ICU Day, and more", CU Times, Sept. 4, 2002). I want you to know that there are still some of us who believe...

  • NCUA right to protect NCUSIF

    I read with interest the recent comments of Jerrie Lattimore, NASCUS Chairperson and Administrator of the North Carolina Credit Union Division. During NASCUS' Annual Conference, Mrs. Lattimore asserted that "NCUA uses insurance as an excuse to regulate state credit unions." I am not well positioned to determine the complete accuracy...

People

  • VENDORS

    William Mills Agency, a public relations firm, has named Cristi Tucker, Howard Franklin and Elizabeth Salter account managers. TNB Card Services, a card services solutions provider, has named Joe Vautrin vice president/manager of credit and collections for the new Agent Issuer Program. Irwin Mortgage, a mortgage solutions provider, has named...

  • WEST

    Columbia Credit Union, Vancouver, Wash., has named Barbara Carlson Riverstone branch manager; Sabrina Riggins outside loan officer; and Stephen Dick outside loan officer. Mission Federal Credit Union, San Deigo, has promoted Dan Colt to vice president of technology. In addition, Mission FCU has named Rebecca Witby Mission Investments manager. Nevada...

  • EAST

    Chartway Federal Credit Union, Virginia Beach, Va., has named Robert Smith director of mortgages. Mid-Hudson Valley Federal Credit Union, Kingston, N.Y., has promoted David Perry to associate vice president of branch operations and Yolanda Lanari to associate vice president of consumer lending.

  • SOUTHWEST

    San Antonio Federal Credit Union, Texas, has named George Burrus first vice president; Phyllis Gregory, assistant vice president; and Deborah L. Stewart assistant vice president.

Advertisement. Closing in 15 seconds.