Novi Community CU, Novi, Mich., has received a number of awards, including the 1999 Dora Maxwell Social Responsibility Award for its community involvement program as a partner with local schools. NCCU's management team makes presentations in the school, and have worked with counselors to organize a career day at Novi HS. In addition, staff members receiving awards included: Susan Cusick, VP of community development, selected as one of the nation's top 25 classroom presenters, and also named `99 Volunteer of the Year; Bob Hinbern, VP, who received the 1999 Sam Walton Business Leader Award for exceptional commitment to the community; and Anthony Musu, sales & marketing manager, who received a Paul Harris Fellow Award from the Novi Rotary Club. Musu now is president elect of the club, and also has received its "Service Above Self" award. Seaboard CU, Jacksonville, Fla., won a Bridge Awards honorable mention with its newsletter "The Seaboard Touch."...

EECU CU, Fort Worth, Texas, for the 2nd year in a row, has sold the most tickets, 5,025, for the Texas Child Identification Program, which provides inkless child identification kits to school age children throughout the state. In all, EECU raised $29,650 through direct ticket sales and proceeds from a charity golf tournament. Because each year, 800,000 children disappear and fewer than 2% of parents have a copy of their children's fingerprints that could be used to help find them, staff at EECU and other CUs hope to raise awareness of the problem through these efforts. Fire Police City County FCU, Fort Wayne, Ind., members, staff, dogs & horses all walked for cancer fund-raising during the 2nd Annual "Making Strides Against Breast Cancer" 5-mile walk sponsored by the American Cancer Society last fall. Rhode Island State Employees CU, Providence, has conducted two fund-raisers: they sold candy bars at their branches to raise $2,270 with the help of members' donations for the R.I. Breast Cancer Coalition, to help fund breast cancer research; and last fall, staff raised $500 for the Leukemia Society of R.I. during the Leukemia Society's "Costumed-For-A-Cure" project. Costumed staff members distributed candy to show their appreciation for donations. Royal Oakland Community CU, Royal Oak, Mich., and Kimball and Dondero high schools have held a personal care drive, donating items such as new combs and toothbrushes to Oakland County Food Bank. CU members donated new hats, scarves and mittens to decorate the lobby Xmas tree. Dondero students did a poinsettia sale, contributing half the profits to the drive; and children from nearby Upton Elementary collected 8 boxes of food to add to the collection. In addition, ROCCU also helped nearby Whittier Elementary with its fund-raising efforts to purchase 200 books and dolls ("Jingles for the Jester") for sick children at William Beaumont Hospital. U-Lane-O CU, Eugene, Ore., has joined with local T.V. stations, businessmen and women and governmental officials to help spread the word about the dangers of drug and alcohol through sponsorship of "Drug Wars" One Family's Battle." This is film about a young man addicted to heroin, and the effect it had on him and his family and others close to him. - lide@cutimes.com...

Brockton CU, Brockton, Mass., has participated in a Brockton Housing Partnership. The partnership of eight lenders was formed during the Northeastern recession in 1992. The focus of the group has been to improve affordable housing. Accomplishments include hosting 1st-time home buyer and credit counseling seminars. The most significant achievement of the partnership, officials said, has been the 2-phase "Buy Brockton" program. Phase I encouraged city employees to purchase homes in Brockton. Phase II is called "Teacher Next Door," will help school teachers who buy homes in the city. Community CU, Plano, Texas, has celebrated the grand opening and ribbon cutting of its new West Allen branch on S. Custer Road. This location offers a 24-hour convenience center and touch-screen computer for immediate home banking access. DuTrac Community CU, Dubuque, Iowa, has opened 2 new branches, the Maquoketa branch at Highway 64 west of Highway 61, to offer a more convenient location to members in Jackson, Jones, Dubuque, Clinton and Scott counties, and the Wal-Mart Branch at Dubuque's Wal-Mart Supercenter. The CU now has 7 locations serving 34,000 members. Energy First CU, Monterey Park, Calif., sent out 5,000 letters to members offering to allow them to skip a payment in November for the fee of $4. All the collected fees, $9,954 last year, go to children's charities, said Darlene Diamond, director of marketing. In December, children from Azteca School got to visit Santa at the CU, enjoying cookies and juice, holiday cartoons, stories, and then the big event, Santa Claus (AKA Ray Bartus, director of lending) and his elves handing out gifts. State Capitol CU, Madison, Wis., has celebrated the opening of its 5th branch. On hand for the ribbon cutting were WCUL President/CEO Ron Halvorsen; SCCU President/CEO Andy Faust; David Mills; Kathy Blumenfeld; and Diane Halvorson....

SPRINGFIELD, Ore., AND COLORADO SPRINGS, Colo.-The Credit Union Service Organization concept has arguably arrived in Credit Union-land, with expansion among presently organized CUSOs taking place and the formation of new ones in progress. But from there on, it's all a very large puzzle with irregularly shaped pieces that present a challenge to even the most astute and experienced credit union CEOs. Gary Gores has reams of experience in organizing structures in the financial services arena and none too little time served in the credit union league support area too. After taking some time off after leaving his post as president of the Ohio Credit Union League, he's baaack! And he's reentered not at the league/political level, and not as a credit union president, but in a place he describes as "where the action is." That place is CUSOs. Welcome to his world, he says. And the world he's trying to make sense of, the very same situation that many credit union presidents and their CUSO president/manager counterparts find themselves in is this: how do you reconcile the operations and services of a credit union and the operations and services of a CUSO? "Well," said Gores in a recent interview- in the relaxed manner of a man who had taken two full years to travel, get closer to his family and view the splendor of the Pacific Northwest- "it's got to be an integrated effort." Just as he saw from his vantage point of working in the savings and loan industry that credit unions were a better approach to the delivery of financial services, then transitioned from the trade association side to his present and challenging position as business manager of SELCO Group Inc., the wholly-owned CUSO of SELCO Credit Union (Service Employees of Lane County CU) the evolution of the CU philosophy is a prime directive. And incorporating that philosophy, as much as possible, into the CUSO's offerings is a task he has taken on, with relish. It helps to have a credit union CEO that speaks the same language, and Gores credits the changes and growth plans he has for SELCO Group as being possible because of the "culture embodied by Ana Milosevic." "No individual institution can take these things on without a partner. The price of poker has gone up. The CUSO needs the credit union and the credit union needs the CUSO. They need to work together, make that blend together," said Gores. And so do the people trying to make the mix work. "He's pretty gracious," said Milosevic, upon hearing that, "but it's genuine." She recalled that when discussing the possibility of the job with Gores, she wondered if he'd feel fulfilled, if it would be enough. Now, she said, "He's having a lot of fun doing it." SELCO Group Inc., has been around since 1982 (it was formerly known as Member Benefits, Inc.) and has three primary business pursuits: insurance services, consisting of AD&D, personal and supplemental insurance for Medicare, and property and casualty lines; the financial solutions area, offering asset management and financial planning, which is administered by FINC; and a communications division, which sells wireless communications services and cellular telephones. It's Gores' challenge now to somehow meld the sales culture of the CUSO side with the service-driven philosophy of the credit union side, he said. Milosevic is keenly aware of the possible tug between the two. "You have to begin by asking, `What does integration mean?' because on one side, you've got a for-profit company and on the other, you have a not-for-profit, and there are a lot of reasons to keep them totally separate. You must have separate management agreements and division of responsibilities." And when there is crossover (as there are in many CUSOs, especially the start-ups) there's got to be an understanding of those cultural differences. But Gores doesn't see a clash as much as a test of communications power. "The service corporation allows us to communicate even more directly with members (on subjects the credit union cannot). We can connect more of the dots so that we can provide more services. It's the heart of the relationship business.," said Gores. It's hard to establish a firm figure for the total amount of dollars under management at SELCO Group, he said, because they are cast about in various places. One of his goals is to achieve a single statement for members in the future, he said. Right now, he's busy doing all that integrating, which means having all employees understand how all those puzzle pieces fit together. SELCO CU members in the state have been (as local government employees) partaking of the PERSs plan, the Public Employees Retirement Plan, which has been compounding at or near 25% per annum. That means that a lot of members discover their nest eggs can range from $300,000 to $1 million, no small change. Just who to trust that kind of nest egg with is critical, and therein lies the big CU advantage, said Milosevic. "This integration thing has to be transparent to members, but not to us. When we offer a product or service, even if it's through the CUSO, the members see the credit union. To them, it's the same; they don't care if it's a subsidiary. So there is a lot more riding on the integration of the two than meets the eye. It can affect the overall credit union." And where is that nexus more important than in the guarded "trust" that credit unions have so painstakingly earned (over decades)? "It's like this: if a member buys a cell phone at the AT&T store and is dissatisfied with the product and service, they don't close all their banking accounts. But if they get a phone from us and aren't happy, they're mad at the credit union." That's why, she said, the selection and due diligence process for CUSO offered services has to be precise and thorough. In Colorado Springs, where Glenn Strebe is CEO of Air Academy Credit Union, the concept of integration is also on the table. Strebe is a frequent speaker on the topic of CUSOs (he did a recent session for the CUNA CUSO Institute in New Orleans). One of his favorite topics is the cultural aspect of aligning the two efforts, another is the compensation scale differences between a CUSO's employees and the CU's employees. "It's a shifting of the hats we usually wear," he allowed. Air Academy's CUSO, called Air Academy Service Corp., runs a very successful mortgage operation, he said. The employees are mortgage professionals, not CU people trained to sell mortgages. Coming from that area, they are used to quite a different pay scale and compensation method. How to have both? "Things have to be bottom-line driven on the CUSO side," said Strebe. "It's got to be a profit-motivated thing; not cold hearted, mind you, but it is a different mind-set from a credit union mind-set." A CU, he said, can live with some product offerings that are less profitable because in the mix, any slack in one area will be made up in another, balancing it all in the end. But in a CUSO, especially if it's a single-line offering, like mortgages or financial planning, if there is a weakness, it causes pain right away. Air Academy Service Corp. is very big in the mortgage side, but also offers financial planning. It's not in the cards right now to venture much farther than those related fields, said Strebe. "I'm very big on core competencies," he said. So it's more or less stick to what you do best and learn to do it better than most of your competitors, and you'll be successful, he believes. "There's always going to be bumps in the road. "A good mortgage person can make upwards of $100,000 in a good year," he said. And financial planners can make at least that and more on a commission basis. But as a credit union CEO, it may take years (if ever) to earn the high-end salaries that bank presidents of similarly sized institutions make. Which brings to mind Gores' path of discovery and introspection; the one that led him back in a serpentine way to a CUSO that seeks to complement its sister credit union. It's the same reason many credit union people stay in credit unions. It's not just about money. "When my time is up, at the end of my life, will I think to myself that I should have made more money, or will I ask if I spent enough time with the people I love?" So there does seem to be a way to combine both the personal and the professional. It's just a matter of good integration. -...

Iowa ATM surcharge ban case spotlights complexity, ambiguity in National Bank Act and EFT Act.............................Page 12...

MADISON, Wis. - Despite threats from bankers to cut off ATM service to non-customers, the state's Privacy, Electronic Commerce, and Financial Institutions Committee Feb. 2 passed S.B. 325, a bill sponsored by state Sen. Judith Robson (D-15) that would "prohibit a state, national, or federal financial institution from charging a person a fee for a transaction using an ATM, unless the transaction relates to or affects an account held by that person with that financial institution." The vote was 3-2. Ron Halvorsen, president, Wisconson Credit Union League said the league testified against the bill in earlier committee hearings on the legislation because the measure does not apply to national or federal financials or to non-financials that own or install ATMs also known as "independent service organizations" (ISOs). "If the idea of the bill to to protect consumers from paying ATM fees, the bill doesn't address the entire problem," he said. "Legislation banning ATM fees could actually wind up hurting consumers. If credit unions had to pull their ATMs, they could be replaced with an ATM owned by an ISO or a national bank." About 90% of ATMs owned by credit unions in the state are part of the "CU Cash" Selective Surcharge Alliance and about 60 of these are owned by credit unions that selectively assess surcharges from non-alliance members. Even if the state legislature amends S.B. 325 to include national or federal banks, Halvorsen isn't sure he will support an ATM surcharge ban. "Three years ago, this question was a no-brainer," he said. "Now surcharging is almost a way of life. I can't be sure what my position would be if the bill was changed." -...

DES MOINES, Iowa - Which federal law governs ATM surcharging by national banks-the National Bank Act or the Electronic Funds Transfer (EFT) Act? Once again this question has moved to the center of the ATM surcharging argument being hotly debated, just as it did in Connecticut, Santa Monica and San Francisco. Now the debate has moved to Iowa. Last fall, after losing its case by a 2-1 decision against Bank One and the Comptroller of the Currency in the Eighth Circuit Court of Appeals to block the bank from assessing surcharges from non-customers who use the bank's ATMs, state Attorney General Thomas Miller's office and Iowa Banking Superintendent Holmes Foster Feb. 2 filed a "petition for a writ of certiorari" with the U.S. Supreme Court to hear the case of Holmes Foster, petitioner, in his official capacity as Superintendent of Banking and Administrator of Electronic Transfer of Funds, Iowa Division of Banking, Iowa Department of Commerce v. Bank One, Utah, National Association, and Comptroller of the Currency. Holmes and Miller are asking the U.S. Supreme Court to uphold Iowa's Electronic Funds Transfer (EFT) Act they say governs ATMs in the state and prohibits surcharges. "We are asking the Court to uphold Iowa's law that requires universal ATM access without surcharges to all cardholders in the State, no matter who controls the ATM machine a consumer is using," AG Tom Miller said. "We urge the Court to take up the matter because several key principles are at stake," he added. "First, it's a matter of protecting consumers. Iowa's law protects all ATM users in various ways, including prohibiting surcharges against cardholders simply for using an ATM. We also argue for the basic principle that consumer protection is a traditional power of the States and should not be preempted." The dispute between the state AG and superintendent of banking with Bank One goes back to 1997 (Holmes' predecessor Michael Guttau was named in the original case) when the bank violated state law by installing ATMs in several Sears, Roebuck & Co. stores in Iowa even though Bank One had no office, branch or agreement with a financial having an office in Iowa. But it was Bank One's challenge of that state law and its argument that national banks are excepted from Iowa's ATM law by the National Banking Act, and the subsequent intervention by the Comptroller of the Currency on the side of Bank One that drew out the federal v. state, EFT Act v. National Banking Act arguments (CU Times, Sept. 15, 1999.) Superintendent of Banking Foster pointed to the ambiguity of language in the federal EFT Act as the cause of the problems and the ATM surcharge-related legal cases that have ensued nationwide. Referring to section 15 U.S.C. of the EFT Act - "A State law is not inconsistent with this subchapter if the protection such law affords any consumer is greater than the protection afforded by this subchapter...", Foster offered that, "Congress needs to amend the EFT Act and clarify the language concerning surcharging and universal access so that it's fairer and better protects consumers. Given the growth in interstate banking, this is imperative. It is neither practical nor effective for each state to have its own regulations." In related news, attorneys' general for nine states have announced their support for a ban on ATM surcharging. The nine AGs are from California, Connecticut, Iowa, New York, West Virginia, Nevada, Oregon, Washington and Minnesota. -...

ALBUQUERQUE, N.M. - John Radebaugh, vice president association services for the Kansas Credit Union Association since 1996, has been named the new president/CEO of the New Mexico Credit Union League, effective March 13. He succeeds Rosie Holub who accepted the position of president/CEO of the Missouri Credit Union League in December. The 47-year-old Radebaugh, a native of Tampa, Fla. and a former supervisory director at Freedom 1st FCU in Wichita, Kan., was selected from among a pool of almost 50 candidates from throughout the U.S. Radebaugh said he viewed the new position as "an opportunity to work at a league with a large and diverse membership." New Mexico has several credit unions with more than half a billion in assets. Radebaugh joined the Kansas CU Association as director of education. Prior to that he served 21 years in the U.S. Air Force achieving the rank of First Sergeant. He served on the Freedom 1st Board while in the Air Force. He holds a bachelors degree in business administration from Newman University in Wichita. A successor for Radebaugh at the Kansas CU Association has not been named though Marla Kniffin, president/CEO said she will "take a look at the structure of our association staff before we make a determination of what we will do."...

Fraser Valley CU in British Columbia harnesses the power of the Internet, forms a branchless division to attract member deposits............................................Page 4...

ARLINGTON, Va. - Recognizing that not all credit unions will be supportive of NCUA's recently released final PCA Rule and complex credit union proposal (CU Times, Feb. 9), the NASCUS (H.R.) 1151 Task Force commended NCUA for its openness and receptiveness to the association's suggestions and recommendations. "While the final PCA Rule and the complex credit union proposal will not be universally embraced by the credit union community, everyone must study these PCA rules against the backdrop of the very specific capital levels and regulators' remedies which the Congress made part of the industry's Credit Union Membership Access Act," said Parker Cann, director of credit unions, Washington State and chairman of the NASCUS task force. "Put in that perspective, the results of the joint effort by NCUA and State Regulators is minimally obtrusive while still in compliance with the provisions of the Act," Cann added. Mary Martha Fortney, vice president of government relations and accreditation estimates that many "complex" credit unions will find that the net worth they have is sufficient to meet the risk based net worth requirements, provided their portfolios are reasonably balanced....

ARLINGTON, Va.-NAFCU Services Corporation has announced the availability of its new program, NSC Select, a network of providers for credit unions. NSC Select programs would allow CUs that use them to expand product and service offerings to their memberships, as well as to take advantage of discounted products and services for the CU's own use, said Elizabeth O'Beirne, NSC vice president. "Credit unions, like many businesses, need a simple program offering discounts," O'Beirne said. "The NSC Select provides such discounts. And that is the primary goal we have for NSC Select." Service discounts would range from 15% to 50%, officials said. The new program is being launched with four companies offering discounted services to include an Internet service provider (CUeveryday), telephone conferencing (Genesys Conferencing), online dispute mediation services (iLevel), and business publications (Kiplingers). NSC Select will add additional providers in the future. For more information, visit the NSC Web site at www.nafcunet.org/nsc....

WASHINGTON - The FDIC has joined federal, state and local organizations and national advocacy groups in celebration of National Consumer Protection Week (NCPW) Feb. 14-20. This is the second year for the week-long event. This year's campaign, "Armchair Armor: Shopping Safely From Home" focuses on how consumers can avoid the risks of fraud or deception while taking advantage of home-shopping opportunities through telemarketing, direct mail and the Internet. The campaign is addressing some of the most common schemes that con artists use to rip off at-home shoppers, and offers practical tips that consumers can use to avoid being victimized. NCPW organizers are establishing Web pages and banner ads, creating and distributing brochures, posters, flyers and press releases about safe shopping from home to disseminate the information. Among the organizers of this year's NCPW are the U.S. Department of Justice, U.S. Postal Inspection Service, Federal Trade Commission, The Consumer Federation of America, AARP, The National Association of Consumer Agency Administrators, The National Consumers League, and The National Association of Attorneys General....

MADISON, Wis. - The World Council of Credit Unions (WOCCU) and the National Association of Cooperative Savings and Credit Unions (NACSCU) of Poland have agreed to co-host the fourth European Credit Union Networking Summit, March 18-19 in Gdansk, Poland. The two-day summit will focus on the implications of cooperative identity and how the European Credit Directive relates to credit unions in Europe. The conference is a follow-up to a 1999 European Credit Union Associations Networking Summit held last November in Bucharest, Hungary. During that conference, representatives from Britain, Ireland, Poland, Albania, Moldova, Bulgaria and Romania discussed the advantages and disadvantages of being included in the European Consumer Credit Directive. That directive, created in 1986 and amended in 1998, establishes minimum standards for member states in adopting rules for consumer protection in credit transactions....

WASHINGTON - The Consumer Federation of America's 33rd annual consumer assembly will be held March 16-17 at the Washington Plaza Hotel. "Consumer Assembly 2000" will focus on critical public policy issues affected by global economic and technological changes. Among the keynote speakers expected are Vice President Al Gore and Congressman Ed Markey (D-Mass.), a member of the House Commerce Committee. Additional information on the conference and registration material are available from CFA at (202) 387-6121....

LOS ANGELES-Santa Monica Consumer's Credit Union officials have announced that it has merged with Hughes Aircraft Employees Federal Credit Union. SMCCU had one branch located in Santa Monica that will become a Hughes Aircraft EFCU member service center, continuing to serve SMCCU's 7,000 members as well as 4,000 Hughes Aircraft EFCU members in the area, said Hughes Aircraft EFCU Chairman Paul A. James. "SMCCU has a long and proud history of service to their members that is very similar to ours..." James said. "In addition to our symbiotic service relationship, our two credit unions share a history of mutual respect and support that dates back many decades. Because of the evolving financial services marketplace and changing regulations governing credit unions, the SMCCU Board was concerned about continuing their level of excellent member services. After careful consideration, the SMCCU Board and management agreed that we could do the best job of carrying on their heritage. "We couldn't be more sure our members are in good hands," noted SMCCU Chairwoman and former CEO Belva Roberts. SMCCU's members now will have access to services through Hughes Aircraft EFCU's 29 branches in California, Virginia, Maryland, Texas and Washington. In addition, the $1.8 billion-asset HAEFCU participates in CO-OP Shared Branching Network, which allows members to access accounts at more than 50 additional CUs in California, as well as 40 more nationwide. Hughes Aircraft EFCU serves 172,000 members....

MADISON, Wis. - After a delayed vote of several hours due to other items on the day's calendar, the Wisconsin Senate passed the Credit Union Consumer Choice Bill, S.B. 274/H.B. 573 by a vote of 24-9 late in the evening Feb. 8. The Senate also defeated several amendments offered on the floor that would have brought credit unions under some form of the Community Reinvestment Act. The banking lobby had pushed hard to get a CRA amendment attached to the CU bill in an attempt to kill the measure. "We couldn't be more pleased by this vote," said Wisconsin Credit Union League President Ron Halvorsen. "We have stated all along that this bill is designed to give more Wisconsin consumers the right to choose a credit union, and the Senate boldly stood up for the little guy in the face of a withering lobbying push by the banks." Evan Bane, director of communications at the league called the banks' objectives "blatently transparent. There was no nobel intent here, just a maneuver to kill our bill, plain and simple." The Credit Union Consumer Choice Bill is scheduled to be heard by the state Assembly Financial Institutions Committee on Feb. 16. A date for a full Assembly floor vote has not yet been scheduled....

WASHINGTON - CUNA has unveiled REGWATCH, a new electronic regulatory newsletter. The newsletter will come out every other week and be e-mailed to CUNA members who currently receive CUNA's Newswatch publication by e-mail. It will also be available to CUNA members at CUNA's Web site (www.cuna.org). According to CUNA, REGWATCH will include items on rules from NCUA, the Federal Reserve Board, the National Automated Clearing House Association, the Federal Trade Commission and other agencies. In a letter to members, CUNA President Dan Mica said REGWATCH is in response to member requests for more user-friendly summaries and concise articles on regulatory issues that impact credit unions....

WASHINGTON - Figuring out what qualifies as "complex" is not exactly easy following NCUA's proposed rule on complex credit unions. Credit unions having a tough time understanding NCUA's proposed rule on "complex" credit unions can log onto NAFCU's Web site (www.nafcunet.org) to find out if they meet the complex criteria. NAFCU has unveiled a "complex" credit union calculator on its Web site to help credit unions determine if they are "complex" as defined in NCUA's proposed rule. "We want to give credit unions the opportunity to know quickly whether they are complex and then immediately be able to calculate their potential risked-based net worth requirements," said NAFCU President Fred Becker. The calculator is free for all credit unions....

SAN LUIS OBISPO, Calif. - Surveys can be valuable tools for credit unions trying to find out what products and services members want; what members think of their credit unions' service; and virtually anything else a credit union wants to know about. Data Based Marketing, a credit union marketing agency, has unveiled a Web-based survey that allows credit unions to collect data from their members who are Web-savvy. Web-based surveys have two distinct advantages over the traditional postal method-they're cheaper and they provide instantaneous feedback. Also, Web surveys are easy to change, giving credit unions the ability to do a number of surveys a year without being burdened with heavy printing and postage costs. "We truly believe that this is the way research will be conducted in the new millennium. Not only do our Web surveys have the potential to reach more people, but they also allow the client a much greater level of access and data content," said Dave Dawson, president of Data Based Marketing. Dawson said DBM will provide credit unions with reports on the survey and show them ways to leverage their Web surveys with traditional paper surveys. At press time, DBM was in the process of constructing its credit union-only Web survey site. The company has a catchy credit union Web address that DBM asked Credit Union Times to keep under wraps until the site is completed. The site will likely be announced later this month. For more information on DBM visit www.dbmkt.com/future....

INDIANAPOLIS - It may sound strange to techies who live in an all-electronic world, but there are people who won't join a financial institution unless that institution returns their canceled checks to them-which not all credit unions do. Can technology save the day? Virtual Financial Services, a provider of Internet solutions for financials, has released a new product that allows credit unions to provide members with images of canceled checks through VIFI's Internet banking product-Internet Banker. The product will be marketed as an offering through VIFI's image warehouse module, Document Manager. The product has been in beta testing for the past month. On Feb. 2, 2000 Digital Federal Credit Union, Maynard, Mass., was the first VIFI credit union client to make the product available to members. Since 1996, Digital Federal Credit Union has relied on Eastern Corporate Federal Credit Union (Eascorp), for check processing services. Check images are recorded by Eascorp and made available on a daily basis to VIFI for presentation through Document Manager. "While we've seen rapid growth in our checking accounts, we still have members that won't open checking accounts without getting their checks back," said Michael Moriarty, Vice President of Finance and Operations with Digital Federal Credit Union. "Even though we've been live for just one day, we've already received positive comments from our members," added Moriarty. To view the canceled check image, DCU members click on a hyperlink from their Internet banking account history screen. The user is presented with front and back images of their canceled check-all within a fully branded, browser-based site. For more information visit www.vifi.com. -...

BROOKFIELD, Wis. - The acquisitive Fiserv has announced its first acquisition of 2000. In a move to bolster its plastic card business, Fiserv acquired Patterson press, a printer and plastic card manufacturer serving the banking and health care industry since 1983. Located in Nashville, Patterson Press has been a leading provider of plastic cards for Personix, a Fiserv business unit that provides an array of plastic card services. In 1999 the Personix unit produced over 130 million cards, including ATM, debit, credit and photo cards. Under the deal, Patterson Press will join the Personix unit....

SACRAMENTO, Calif. - AnyTime Access believes credit unions can really capitalize on their Web presence if they support their Web products and services with call center support. Over the last two years, AnyTime Access has learned the importance of the Internet as a delivery channel. Last year the company processed over 20,000 loans, worth $220 million, that came from the Internet channel. While the company has been supporting credit unions' Internet lending solutions for the last two years, it just recently unveiled a fully-automated Internet lending solution-AnyTimeLender. AnyTimeLender will provide a fully automated lending decision in 90 seconds. Applications that don't meet the automated criteria will be reviewed by an AnyTime Access loan officer in the call center. One of the biggest challenges for a successful Internet lending program is speed of service. The problem is since many credit unions have tight underwriting criteria many members applying for loans over the Net can't be approved or denied-the application needs to be sent to a loan officer for further review. "Somewhere between 60 to 70% of applicants over the Web can't be approved. There are some very credit worthy people out there that just don't fall within some of the tight criteria credit unions have," said Jeff Whelton, executive vice president, product manager for AnyTime Access. Whelton said AnyTimeLender gives credit unions the ability to fund loans quickly for members that easily fit into their underwriting criteria, but for those who are not instant approvals, they will get the attention of an AnyTime Access loan officer. AnyTime access receives about 3,500 applications a month on the Internet channel. For more information visit www.anytimeaccess.com....

PRINCETON, N.J. - Princeton eCom, a provider of bill payment and presentment solutions, announced an agreement to present ebills to Q UP Systems' financial institution clients. The five-year, exclusive agreement with Princeton eCom, will give about 300 Q UP financial clients access to Princeton eCom's presented bills. Princeton eCom's marketing program allows Q UP and its customers to resell any of Princeton eCom's solutions under their own brand. Q UP provides Internet banking and e-commerce products to the financial services industry. For more information visit www. princetonecom.com and www.qup.com....

DENVER - The e-commerce effect continues to be felt in the credit union industry. cavion.com here, a provider of Internet solutions to credit unions, announced the launch of an e-commerce division, Member Emporium. According to cavion.com, the new division will provide credit unions and their members with a broad spectrum of co-branded Internet services, shopping and personalized member portals, and Web site promotional tools. "Credit unions have traditionally provided a superior level of service to their members," said Dan Dudley, vice president of e-commerce at cavion.com. "Member Emporium is designed as a value-added program that dramatically expands that level of service for credit unions on the Internet." Similar to popular Web portals like Yahoo!, Member Emporium offers members personal start pages and select merchant services from Member Emporium's preferred merchant program. Member Emporium will also offer targeted ad banners and a search engine campaign management service bureau. Similar to the popular CUShopper e-commerce component, Member Emporium works with the merchants to funnel Internet lending opportunities to sponsoring credit unions. cavion.com is currently conducting Member Emporium beta tests with a number of its credit union clients. For more information visit www.cavion.com....

MCLEAN, Va. - Online Resources & Communications Corp., a provider of Internet solutions to the financial services industry, has signed a strategic marketing agreement with Aurum Technology Inc., formerly a division of EDS Financial Industry Group, which spun-off and became an independent company late last year. The marketing agreement calls for ORCC to interface its real-time Internet banking capabilities with Aurum's real-time core processing system. "Together we will help our mid-range and community-based financial institution clients level the playing field with larger institutions," said Brian Van Dyk, Aurum Technology Executive Vice President....

SAN DIEGO - To try and do the impossible-stay ahead of the technology curve-credit union data processor Symitar Systems has created a new Research and Design Department. "This department consists of a group of people whose sole mandate is to scan the horizon for new technologies," said Jim Honeycutt, Research and Design Director for Symitar. "The ultimate goal of the department is to take the time to really understand the different technologies out there. There are innumerable possibilities waiting to be discovered...." The Research and Design Department also plans on collaborating with Symitar credit union clients to determine what types of services credit unions are looking for. "People at research levels need to talk to clients. It's very helpful to exchange information for the future development of new products," said Honeycutt. Once the new department discovers a technology that it wants to develop for its clients, it will first determine whether it's best to be built in-house or outsourced to a third party. The new department is expected to work closely with Symitar's existing Product Development Department....

LAS VEGAS-It's a good bet that NACUSO's planned annual conference here will draw its biggest crowd so far, judging by the interest shown in CUSOs this past year. The NACUSO 2000 Annual Conference, organizers say, will focus on "opportunities, both proven and new, and experiences which are important to every credit union and CUSO professional or volunteer." And it doesn't matter what size CUSO, or how far along a plan to start one might be. With guaranteed big-draw speakers and experts in the field, attendees can expect CUSO education, management training, marketing ideas, product information and networking opportunities galore. Then there are the sights to take in, and those famous Vegas buffets. Register by fax with NACUSO for the conference, which runs from May 9-12 at Bally's Las Vegas Spa and Casino (909) 628-6160 or online at (www.nacuso.org) or snail mail to NACUSO, 3419 Via Lido #135, Newport Beach, Calif. 92663. The phone number is 1-888-462-2870. -...

TAMPA, Fla.-MacDill Federal Credit Union has added automobile and homeowners insurance to its CUSO mix of offerings to members. In association with Brown & Brown, the largest insurance agency in Florida (and the ninth largest in the country) MFCU members can call a toll-free number, fax or email to get a quote on any of their insurance needs. All insurance companies whose services are offered are rated "A" by A.M. Best Company (a financial strength rating that is standard in the industry) and comparison pricing should be a snap, they say. A number of discounts for both auto and homeowner lines are available as well....

As a former chairman of Portland Teachers Credit Union in Oregon I wanted to express my heart-felt gratitude to Credit Union Times for the excellent, well-written article in the Jan. 5 issue, "Sleeping giant not asleep any longer" written by your Northwest Pacific Coast Correspondent Jo McIntyre. It was a direct reflection of the visionary leadership attributed to our young CEO Cliff Diaz. It was Cliff's superior ability to accept this exciting challenge and fast pace of change that is remaking and refashioning Portland Teachers Credit Union from the "sleeping giant" into a wide awake financial services giant dedicated to the credit union philosophy of "people helping people." I also want to commend Credit Union Times publisher Mike Welch for his timely, straight-forward ideas that help us stay informed and alert to change. Dwayne Osburn Director Portland Teachers Credit Union...

Are credit unions still being sued by banks and their trade organizations? It seems like they are and I for one am getting a little petulant regarding this. Let's consider airing the bank's dirty laundry for them. If they yell, we can offer to stop when their lawsuits stop. We would have to be prepared for a counter from them - they, for example, could air our laundry. I would guess ours isn't as bad as theirs. They probably have already aired ours. Let's take the facts. Let's let the public know in big bold ads which banks are having problems, why, and who really pays for all of this. The media doesn't always let everyone know about some of this for a lot of good reasons - the banks, for one, spend a lot of dough advertising in these papers. Let's keep up the good work. Dean Nelson President City-County FCU...

In the summer of 1999, I worte an article extremely critical of a risk-based consumer lending policy which was being considered by my credit union board. My position raised some eyebrows and body temperatures among my peers and I was duly chastised and censured. I am concerned that credit unions are adopting a total membership consumer loan risk-based lending policy not out of compassion for members who could not qualify under the old loan policy, but rather to reprice their products in order to offer the lowest risk members a more attractive rate. I went so far as to say that a certain type of risk based lending should not even be legal in credit unions. Well, maybe it is not. Time to drop the other shoe. Credit Union Magazine of October, 1999, pages 39 and 40, contained an article by Valarie Moss, director of compliance information in the regulatory affairs department of CUNA's legal division. The article was concerned with risk based lending and the Equal Credit Opportunity Act. The article stated "credit unions that cannot justify and support pricing differences based on risk will face heightened compliance and reputation risk if pricing decisions appear to result in disparate treatment under consumer protection regulations." The article further states, "With regard to fair lending there are basically three recognized forms of discrimination: overt, disparate treatment and disparate impact." Under disparate impact the article says, "When a lender applies a policy or practice equally to credit applicants, but the policy or practice has a disproportionate adverse impact on applicants from a protected group, the policy or practice is described as having a disparate impact." A credit union's program can be challenged on a theory of disparate impact if more onerous credit terms are disproportionately applied to members of a protected class. The September 22, 1999 edition of the Detroit Free Press published an article containing the results of a survey funded by mortgage lender Freddie Mac. The survey was conducted by five historically black colleges and universities to study the credit situation and covered over 12,000 consumers with annual incomes up to $75,000. According to the survey about half of African Americans consumers have bad credit records, regardless of how much they earn. Based on the information in these two articles, I would conclude that there is a question whether some credit unions are in violation of the Equal Credit Opportunity Act. I attempted to get a legal opinion from my league and was advised to check with our bonding company. I think that would be prudent advice for all credit unions engaged in risk based lending. A suit brought against credit unions by a protected group could tarnish our image as the good guys in the white hats. John Livingstone Member Telcom Credit Union...

As a member of the Utah Credit Union League's Credit Union Development Committee, I have the opportunity to review applications from small and struggling credit unions that would like to receive funds set aside for this purpose by some larger credit unions. Many of the requests towards the end of 1999 were for $5,000 to upgrade computer software. Upon further investigation we realized that one large computer software provider was asking its users to pay upfront for an upgrade that they said would be available at some unforeseen time in the future. This prompted a good deal of discussion among our committee who had already received several complaints from credit unions about the expense of doing business with large computer software companies. I understand the plight of these small credit unions. I have been there. It seems that once a small or medium sized credit union purchases a software package from one of the big guys, the investment is so enormous, the credit union feels as though they're being held in bondage for years, having to pay upgrade fees at the whim of the company because it is too expensive to bail out and buy a different package. But there is an alternative. In 1982 I went looking for our credit union's first in-house computer system. At that time, there were some fairly large vendors, but because I was so impressed with the personal touch of two young owners and their user friendly programming, I chose to go with a company that was just starting up. The system was not terribly expensive and if I had a problem, one of the owners answered the phone and immediately knew what to do. If the problem was really bad, one of them would get in the car and drive to my credit union to fix it. My suggestions for enhancements were taken seriously and usually incorporated into the system. Life was good. I was happy. Fortunately for the owners and unfortunately for me, others recognized the quality of the system and when the company took off and became more successful, it grew with alarming speed and as a result, experienced some growing pains. Support people couldn't be trained fast enough and the overhead became such that the monthly software support fees no longer generated enough revenue to cover the cost of new programming. The level of service deteriorated and upgrades became expensive. So, four years ago when I needed new hardware and a software upgrade, against the advice of our league staff and the NCUA examiners, I went looking for a smaller company. I found what I was looking for in a one man operation with 13 credit unions to support. The credit unions ranged in size from $5 million to $70 million and the package contained every service available at the time plus an integrated loan application system. The owner charged $3,500 for the software. The monthly support fees were a bit more than I was used to, but they covered support and all upgrades. Now, if I want a small enhancement, I tell the owner and he does it immediately. If I want a major change, I call a member of our enhancement committee and they put it on a list in order of priority and it gets done a few months later. When I have a problem, I page the owner and he usually calls me back within 5 minutes. If the problem is really bad, he gets in his car and drives down to fix it. Life is good. I am happy. In case you're wondering what's going to happen if hypothetically the owner gets hit by a truck, the two large credit unions using the system each have an IT person on their staff that knows how to program. In fact, they do some of the enhancements and support the rest of us when the owner is on vacation. So, the moral of the story is if you want to save your credit union a bundle and have some control over your computer software and service, consider doing business with a smaller company. Don't listen to the NCUA examiners who will try to convince you that there is more safety with a big company. If a programmer subscribes to credit union publications and listens to his credit unions, he or she will stay in compliance with all of the changing laws and regulations. And a prudent group of credit unions will make sure there is always a back-up to that main programmer. To address the issue of keeping data processing affordable, the Utah Credit Union League is analyzing the possibility of creating its own computer group with our league IT person programming and supporting a system. I think this is an extremely worthwhile league project and I am excited to see how it turns out. For the sake of the small credit unions in our state, I hope it is smashingly successful! Another solution to the problem is for the large computer companies to create small credit union subsidiaries that maintain and support basic accounting software without all of the bells and whistles and only enhance when there is a compliance issue. A smaller, more localized operation without all of the upper and middle management people would mean a more affordable computer system....

When young people ask me about a career in credit unions, hopefully some day at the CEO level, they inevitably get around to talking about such basics as pay, benefits, working conditions, and job security. All except the last point are easy to answer. For the most part, the pay is now fairly competitive, the benefits package average to good, and the working conditions good to excellent, especially in the larger credit unions which tend to be housed in modern facilities. As for job security, especially at the credit union CEO level, it is almost impossible for me to be enthusiastic. They would probably find more job security as a head coach in the National Football League. A credit union CEO job comes with little job security, with or without an employment agreement in place. Don't take my word for it. Only look at the rash of CU CEO departures over the past 12 to 18 months right up until last week when a 25 year veteran bit the dust, another left after 18 months, and another after six months on the job. High-profile credit union chief executives usually move into the corner office of very large credit unions with much fanfare, only to be ousted very quietly within a matter of months. The action becomes hush, hush, and surrounded in secrecy, like no executive has ever quit or been fired before. It's interesting that the credit union media delights in carrying good news stories, such as CU CEOs coming in the front door, but almost never makes mention when they are unceremoniously booted out the back door. That news must be gleaned from the infamous credit union grapevine as in, "Did you hear that Joe Blow is no longer with XYZ Credit Union?" I know of a dozen credit union CEOs who have made recent surprise departures. All thought they had made a new home for life, or at least until it was time to get their gold watch and step down. For a variety of reasons, it didn't work out that way. Without divulging the name of the individual, or his or her former credit union, here are some real life examples of why marriages made in heaven very quickly unraveled: *...

BALTIMORE, Md. - John Roycroft, longtime Maryland credit union advocate died Feb. 1 from cancer. He was 53. Roycroft began his credit union career as a part-time employee for SECU in the late 1960's and eventually became vice president. In 1987, he left SECU to work for Callahan & Associates in Washington, D.C. where he built the TRUST for Credit Unions. He joined MTA ECU in 1991 as a part-time consultant and was hired full-time as CEO in April 1995 where he worked until his illness was discovered. Roycroft was also Chairman of the Board for the Credit Union Insurance Corporation (CUIC) from 1977 to 1990 and again from 1995 to the present, was a member of the Maryland Credit Union League's state legislative committee, and served on Central Credit Union's Board of Directors. Bob Steil, president, MCUL, described Roycroft as being "an extremely dedicated credit union professional who was well-thought of within the credit union community. He was a good personal friend of mine and the league, and he will be greatly missed." Maureen McAtee, president/CEO, CUIC echoed Steil, saying "From the very beginning, he (John) was supportive of what I had to offer the corporation, in spite of the fact that I was new to the credit union movement...he was gifted with the ability to sit with you, train you on the job, and never once make you feel inadequate. John taught me how to be a professional in the credit union movement and always respected me and treated me as one." Roycroft is survived by his wife and son....

Novi Community CU, Novi, Mich., has received a number of awards, including the 1999 Dora Maxwell Social Responsibility Award for its community involvement program as a partner with local schools. NCCU's management team makes presentations in the school, and have worked with counselors to organize a career day at Novi HS. In addition, staff members receiving awards included: Susan Cusick, VP of community development, selected as one of the nation's top 25 classroom presenters, and also named `99 Volunteer of the Year; Bob Hinbern, VP, who received the 1999 Sam Walton Business Leader Award for exceptional commitment to the community; and Anthony Musu, sales & marketing manager, who received a Paul Harris Fellow Award from the Novi Rotary Club. Musu now is president elect of the club, and also has received its "Service Above Self" award. Seaboard CU, Jacksonville, Fla., won a Bridge Awards honorable mention with its newsletter "The Seaboard Touch."...

EECU CU, Fort Worth, Texas, for the 2nd year in a row, has sold the most tickets, 5,025, for the Texas Child Identification Program, which provides inkless child identification kits to school age children throughout the state. In all, EECU raised $29,650 through direct ticket sales and proceeds from a charity golf tournament. Because each year, 800,000 children disappear and fewer than 2% of parents have a copy of their children's fingerprints that could be used to help find them, staff at EECU and other CUs hope to raise awareness of the problem through these efforts. Fire Police City County FCU, Fort Wayne, Ind., members, staff, dogs & horses all walked for cancer fund-raising during the 2nd Annual "Making Strides Against Breast Cancer" 5-mile walk sponsored by the American Cancer Society last fall. Rhode Island State Employees CU, Providence, has conducted two fund-raisers: they sold candy bars at their branches to raise $2,270 with the help of members' donations for the R.I. Breast Cancer Coalition, to help fund breast cancer research; and last fall, staff raised $500 for the Leukemia Society of R.I. during the Leukemia Society's "Costumed-For-A-Cure" project. Costumed staff members distributed candy to show their appreciation for donations. Royal Oakland Community CU, Royal Oak, Mich., and Kimball and Dondero high schools have held a personal care drive, donating items such as new combs and toothbrushes to Oakland County Food Bank. CU members donated new hats, scarves and mittens to decorate the lobby Xmas tree. Dondero students did a poinsettia sale, contributing half the profits to the drive; and children from nearby Upton Elementary collected 8 boxes of food to add to the collection. In addition, ROCCU also helped nearby Whittier Elementary with its fund-raising efforts to purchase 200 books and dolls ("Jingles for the Jester") for sick children at William Beaumont Hospital. U-Lane-O CU, Eugene, Ore., has joined with local T.V. stations, businessmen and women and governmental officials to help spread the word about the dangers of drug and alcohol through sponsorship of "Drug Wars" One Family's Battle." This is film about a young man addicted to heroin, and the effect it had on him and his family and others close to him. - lide@cutimes.com...

Brockton CU, Brockton, Mass., has participated in a Brockton Housing Partnership. The partnership of eight lenders was formed during the Northeastern recession in 1992. The focus of the group has been to improve affordable housing. Accomplishments include hosting 1st-time home buyer and credit counseling seminars. The most significant achievement of the partnership, officials said, has been the 2-phase "Buy Brockton" program. Phase I encouraged city employees to purchase homes in Brockton. Phase II is called "Teacher Next Door," will help school teachers who buy homes in the city. Community CU, Plano, Texas, has celebrated the grand opening and ribbon cutting of its new West Allen branch on S. Custer Road. This location offers a 24-hour convenience center and touch-screen computer for immediate home banking access. DuTrac Community CU, Dubuque, Iowa, has opened 2 new branches, the Maquoketa branch at Highway 64 west of Highway 61, to offer a more convenient location to members in Jackson, Jones, Dubuque, Clinton and Scott counties, and the Wal-Mart Branch at Dubuque's Wal-Mart Supercenter. The CU now has 7 locations serving 34,000 members. Energy First CU, Monterey Park, Calif., sent out 5,000 letters to members offering to allow them to skip a payment in November for the fee of $4. All the collected fees, $9,954 last year, go to children's charities, said Darlene Diamond, director of marketing. In December, children from Azteca School got to visit Santa at the CU, enjoying cookies and juice, holiday cartoons, stories, and then the big event, Santa Claus (AKA Ray Bartus, director of lending) and his elves handing out gifts. State Capitol CU, Madison, Wis., has celebrated the opening of its 5th branch. On hand for the ribbon cutting were WCUL President/CEO Ron Halvorsen; SCCU President/CEO Andy Faust; David Mills; Kathy Blumenfeld; and Diane Halvorson....

Ever since the NCUA board announced that it would be sending out a one-time, voluntary low-income member survey, there's been a debate within the industry over whether or not credit unions should complete it....