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 Office Plaza in downtown Eau Claire on June 1, 2000. This new space will enable RCU to conduct concurrent classes for new hires. Franklin Mint Federal Credit Union, Broomall, Pa., has announced the grand opening of its new Chester Branch. According to President John D. Unangst the new branch has proven to be a very necessary addition to the Chester Community. FMFCU has over $200 million in assets and serves over 42,000 members. Kansas Credit Union Association, Wichita, has moved its Wichita office to 650 S. Westdale, near Wichita's Town West Square....

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: collecting funds and band instruments after the Wilson Jr. High School fire; visits to Community Multi-Care Senior Center; Shared Harvest Food Bank; and Adopt-A-School at Immanuel Lutheran. First Financial FCU, Lutherville, Md., has been named the 2000 recipient of the Maryland State School Health Council Program Award for its KidsFirst Fund Health Care Services donation. The award is presented to an organization whose model program has contributed significantly to the promotion of comprehensive school health programs in Maryland. FFFCU has donated $50,000 to help students in need of health care. In addition, the KidsFirst Fund has awarded five $5,000 college scholarships to high school seniors; donated $30,000 to the Baltimore County Public Schools Dental Sealant Program for underprivileged second and third graders; and awarded $100,000 to 21 Baltimore County Public Schools for computers. FFFCU has over $266 million in assets and serves 40,929 members. Toledo Area Catholic Credit Union, Ohio, CEO Patrick McGrady has been named Professional of the Year by the Ohio Credit Union League. TACCU has $125.7 million in assets and serves 18,751 members. Kenton Rockwell Standard FCU, Ohio, Board President Douglas Clark has been named Volunteer of the Year by the Ohio Credit Union League. KRSFCU has $21.9 million in assets and serves 4,529 members....

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 Knoxville, UT Martin and Pellissippi State Universities by giving 5% of interchange income from the use of debit and credit cards to the general scholarship fund of the universities in their membership. First Atlantic Federal Credit Union, West Long Branch, N.J., has donated a new mountain bicycle to Fort Monmouth's Annual Youth Services Children's Carnival. Linda Pearson, a credit union marketing assistant, presented the grand prize winner, Memorial Middle School student, Brock McClintock, with the bicycle. Education Credit Union Council, Spanish Fort, Ala., an association serving educational credit unions, has donated over 400 books and tapes to the Children's Hospital in New Orleans. Since its inception five years ago, the Books for Children program has donated over 2,000 books. California Credit Union League, Rancho Cucamonga, through its open house golf tournament, has raised more than $1,200 for the Richard Myles Johnson Foundation to support credit union education. The foundation provides scholarships and grants for credit union volunteers, staff and members to attend workshops, conferences and educational events. Tampa Bay Federal Credit Union, Fla., President Dale F. Schumacher has donated $10,000 to the Ed DeBusk Memorial Scholarship Fund at Hillsborough Community College. Matched by a like amount in state money, the fund will provide for a minimum of one full scholarship annually for the son or daughter of a credit union member....

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 ranked in the top 25 out of 514 credit unions with assets between $100 and $250 million on Callahan's Return to the Saver Index. USA Federal Credit Union, Troy, Mich., has surpassed the $400 million asset mark in March. USA FCU membership grew 7.9% in 1999 and share balances increased 8.1%....

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 assets and serves 17,012 members....

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 items a month for about 110 Georgia credit unions. Last fall, the CUSO took its first steps into imaging by installing imaging software from Advanced Financial Solutions (AFS), Oklahoma City, to replace the microfiche products it had used for years to manually and tediously handle item processing. While CSI was implementing its imaging plan, Georgia CU Affiliates was working with CyberBranch, formerly known as Cardinal Services Corp., a wholly-owned, for-profit subsidiary of Stanford FCU, to develop Internet services for Georgia credit unions. Jerry Keenan, CSI's senior vice president said it was through the league's relationship with then-Cardinal Services that CSI learned about cavion.com's eDraft service. When Credit Union Times went to press, the service was only available to credit union staff and enabled them to access members' share draft images from CSI's database over cavion.com's secure frame-relay communications network-CUiNET-or over Georgia CU Affiliates' Internet provider. Eventually, Keenan said credit union members will be able to access images of their share drafts on their own over the Internet. For those credit unions that don't use cavion.com as an Independent Service Provider (ISP), Keenan said CSI will inform the CUSO which credit unions it should let through its security firewalls to access the share draft information. CSI is the third CUSO to offer eDraft. The Missouri Credit Union League's Credit Union Partnership Inc. and the Colorado League Service Corp. have used it since 1999. Prior to using eDraft and installing imaging software from AFS, Credit Union Partnership's League Item Processing Center outsourced the file transmission for St. Louis-area CUs through the Colorado CU League and the Kansas Credit Union League for Kansas City-area CUs. Barbara Morrissey, vice president, LIPC said the processing center didn't have the staff or the modems to send the files themselves. LIPC provides share draft processing for 120 credit unions and handles about six million items a month. As part of its image-enabling plan, LIPC purchased an expanded communications system but it was still concerned about having sufficient communications lines. "Sending the files of processed share drafts over the Internet using eDraft made sense," Morrissey remarked. Anheuser-Busch Employees CU, St. Louis was the first CU to retrieve members' share draft images over caviion.com's eDraft service. At press time, Morrissey said about a dozen of the CUs LIPC processes share drafts for use the service. -...

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. The overall growth in non-cash payments has been approximately 5% per year over the past two decades. Since checks are the dominant form of non-cash payment in the U.S., the overall increase in payment volumes has been and will continue to be dominated by the paper checks, even though electronic payment volumesare increasing at double-digit rates....

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 letter to the House Subcommittee on Financial Institutions and Consumer Credit. Such a lack of definition makes it difficult to determine to what extent these types of practices are ongoing or to collect data. Weaknesses in current law and regulations also cultivate the continued practice of predatory lending, says NASCUS. The federal Alternative Mortgage Transactions Parity Act (Parity Act/AMTPA), for example, was enacted by Congress in 1982 to encourage variable rate mortgages and other creative financing to stimulate credit. Since the Parity Act preempts state law and state regulation, state regulators are helpless to contain violators of the practice. In Sept. 1999, the NASCUS regulatory and council boards adopted a policy position with regards to predatory lending. In addition to directing NASCUS management to keep member credit unions and regulators apprised about the association's growing concerning predatory lending, the boards also asked member credit unions to work with the industry to draft and promote regulations and legislation applicable to predatory lending, and to "put NCUA on notice that the state credit union system is examining this issue." Earlier that year, as part of the association's mission to be a clearing house of information for state-chartered credit unions, NASCUS developed and sent a Fringe Banking Survey to the 48 state regulatory agencies. The survey was designed to ascertain: the prevalence of pawnshops, car title lenders, postdated check lenders, check cashers, and mortgage lenders operating in the agencies' respective states under special statute or a general business law; whether these businesses are allowed to operate across state lines; whether these operations are regulated by a state agency. ekingoff@cutimes.com...

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

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

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 their members' financial privacy, she chided them in a subtle way for not publicizing that fact. It's a matter of trust, she assured, as she couched the privacy effort in the "choice" rhetoric of the credit union victory over the fight to pass H.R. 1151. "Credit unions won the fight for `consumer choice' and it's this concept of choice that has to be meaningful in order for it to have been worth fighting for." Striking a balance between protecting members' privacy and the benefit that information sharing can provide is a challenge, she stated. Putting that privacy `first' is part of the credit union difference, said Wheat. -...

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 recommendations on policy initiatives that will enhance Wisconsin's financial and economic enviroment by the year 2005." Kundert said he's been considering creating the task force for awhile. "It's important to convene a public-private working group like this to consider recommendations that will enhance our regulatory and economic environment between now and the year 2005. "The financial marketplace is changing," Kundert continued. "For Wisconsin's financial services to keep pace with federal law changes, the introduction of new technologies that are revolutionizing the delivery of financial services, and the changing needs of financial consumers, it is an absolute necessity for a task force like this to bring all the interests to the table - industry and consumer alike." The task force will be comprised of representatives from all of the state's major financial services, as well as consumers. Kundert or his designee will chair the task force, as well as appoint other members recommended by the: * Wisconsin Bankers Association and the Community Bankers of Wisconsin, including representatives of both commercial banking and savings institutions; * Wisconsin Credit Union League; * Wisconsin Financial Services Association; * Wisconsin Mortgage Bankers Association; * Wisconsin Association of Mortgage Brokers; * Wisconsin Deferred Payment Association. There will also be representatives on the task force from the Governor's office; the Wisconsin State Legislature; the Office of the Commissioner of Insurance; the Department of Commerce; the insurance industry; investment companies and other members of the securities community; consumer credit counseling services; financial education advocacy groups; financial consumer advocacy groups; and service companies that do corporate and UCC filings. Kundert expects to finalize the membership of the task force by June 1 and ask it to complete its work, in two phases by Oct. 31. Phase One will include information sharing and the identification of broader issues the task force may consider as part of its analysis; phase two will feature the development of specific recommendations for policymakers to consider that will improve the state's competitive environment for financial services. The task force's work will culminate with a report to Gov. Tommy Thompson and the state legislature. The task force will also hold public meetings throughout the state before it issues its report. -...

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 at current levels of volume or higher in the foreseeable future. Consider the following. According to a 1999 study by Global Concepts for the Check Payment Systems Association (CPSA), "The Indelible Check: An Assessment of the Dominance of the Check in the U.S. Payment System at the Close of the 20th Century" : * the paper check is responsible for generating approximately 40% of the total revenue for the U.S. payment system industry; * 87% of U.S. adults have a checking account; * corporate income taxes tied to the checking industry and paid by non-bank parties are estimated to be between $600 million and $1.25 billion each year; * employees and their employers in the checking industry are estimated to contribute almost $917 million to Social Security each year. Employees in the industry contribute an estimated more than $61 million to Medicare annually. * annual check volumes have grown over the past five decades from less than 7 billion checks written in 1950, to an estimate 70 billion annually by 1999. In order for other forms of non-cash payment to overtake checks in usage, "ACH, credit cards, and debit card payments would have to double their current two-digit growth rates simply to stall check growth," says CPSA. Furthermore, "even if the check was to decline in volume, overall annual check volume will still be in the range of 50-60 billion checks per year for years to come under even the most drastic forecast of declining check volumes." The payment system of the 21st century is about choice, offered Julie Faulkner, associate director of marketing, credit union division for Clarke American Checks Inc. "Emerging new payment systems are not being used by consumers as a replacement for checks, but rather another option. Consumers want to be able to choose how they make their transaction and they're deciding at the point-of-sale the transaction system that's most convenient for them," Faulkner said. ACH, credit card and debit card payments' projected increase, according to CPSA, of 46%, 34% and 24% respectively from 2000 to 2002 underscores consumers' growing use of a variety of payment methods. Still, "the exponential growth of credit and debit card transactions at the POS has had little adverse effect on the check," says CPSA. What does consumers' increased demand for control of their payment method decisions mean for credit unions? One effect already evident is members are taking more ownership of the check reordering process direct with the check printer. Instead of a CU member service representative taking the member's order and subsequently owning the entire check reorder process, including making any corrections, pricing the reorder and handling the mailing and delivery instructions, check reordering has become a complete home shopping experience for members. In this scenario, check printing vendors are establishing co-sourcing partnerships with credit unions and working with them not as a substitute for the CU, but acting on behalf of the credit union as a service provider. Faulkner says Clarke American is in the final testing phase of being able to take calls 24/7 from credit union members in its newest call center in San Antonio. The 68,000 square foot call center is scheduled to open in June. That will make four call centers Clarke American will operate to take check reorders (the other three are in Orlando, Salt Lake City and Syracuse). -...

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 a matter of trust." Under the amended bylaw, "the annual membership fees of the members of the Pennsylvania Credit Union League shall be determined by a two-thirds vote of the Board of Directors" of PCUL. The change includes a provision for the membership to repeal by two-thirds vote of delegates at a subsequent annual meeting any change in membership fees. -...

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: David Kuo (at head of table) from CUNA Mutual and members of the delegation....

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 of Cornell University, the $231 million CU had taken in about 100 SEGs by 1980. Since converting to a state charter in Dec. 1997, Cornell FingerLakes has added about 300 SEGs to its field-of-membership and continues to file each month with the state Banking Department to add about 40 SEGs. The week ending May 5, Cornell FingerLakes filed to add Clarity Connect Inc., Executive Assistant, Fadden & Associates PT Inc., Women's Opportunity Center, Community Dispute Resolution Center, and Cummins Real Estate to its FOM....

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 unions are: Long Beach Schools FCU, Long Beach, $500 million; Matadors FCU, Northridge, $65 million; North Island FCU, Glendale, $835 million; Rockwell FCU, Downey, $480 million; USC FCU, Los Angeles, $79 million; and Ventura County FCU, Ventura, $141 million. That brings to 13 the number of federal credit unions in the state that have applied for a state charter so far this year (Providence First FCU's application was approved.)...

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 the microfiche file, copy and fax the information. So much for taking care of that problem. But document imaging applications require a lot of computer storage space. Perhaps Mark Brownstein of Imaging & Document Solutions put it best when he wrote that "capacity requirements now exceed the capabilities of any storage devices by many factors of 10." With demands to keep permanent records of all transactions over the Internet, the necessity for high-density storage is critical. But deciding which type of storage hardware is most appropriate and sufficient can be daunting to a credit union, especially one just getting its feet wet in imaging technology. Here's a sample of the menu of choices: optical media like magneto-optical (MO) and "write once read many" (WORM) have typically been used for large document imaging installations. Recently, other types of optical media such as CD and DVD, have also gained in popularity. At the same time, falling prices of hard disk space have triggered an increase in the number of RAID (redundant array of independent disk) subsystems used in document imaging applications. Mark Anderson of Plasmon Inc.l in Eden Prairie, Minn. offered that when it comes to choosing the most appropriate storage device, "Users are asking the wrong question. They've been asking how long the stored information will last, but what they really want to know is how tough is this stuff? How long will it last it it's used every day." Only a few document imaging users will access files thousands of times a day, but it's nice to know if they wanted to, their storage device could withstand the wear and tear. -...

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 Episcopal Dioceses of Central Florida in the month of April. "Our new ATM service and our Web-based member communications exemplify our dedication to making banking convenient as well as user friendly," said Lavelle Basden president of FEDFCU. FEDFCU's intimate staff of three is in a rare position to know each member by name. Such personal member relationships drove the credit union to providing ATM cards. "When you are this small and close knit it's a challenge to encourage growth. The way to do that is by staying competitive," said Marketing Consultant Sue France. Staying competitive means having ATM access. The ATM service will allow members to check balances, make withdrawals and deposits, and transfer funds between accounts. So far approximately 40-50 cards have been issued. The card will be accepted at ATMs on any of the following networks: Member Access; The Exchange; American Express; and Credit Union 24. Credit Union 24 offers members CU HERE, a voluntary surcharge free program, so members pay no surcharges at Credit Union 24 ATMs. To raise awareness of the faith-based credit union, France began a pilot program promoting FEDFCU at her church on Sunday mornings. In addition to personal testimonials from current members, France said that for every $5 membership fee the credit union donates $5 to a Honduran medical/dental mission and a veterinary mission. "It is important for me to show people that our credit union's uniqueness is in it being an extension of the Episcopalian ministry," said France. So despite its size and not having an ATM located at the branch, FEDFCU still delivers. -mbourjolly@cutimes.com...

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 5. The event was co-sponsored by the Southwest Macomb Technical Education consortium, METRO CU and the four high schools involved. "We thought about it, and we realized it was a great opportunity to support the schools and show off the students' works of art," said Kris McArdle, business development manager at METRO CU. According to Center Line High School Principal Lynda Bonucchi, the idea of an art show was sparked by her love of the arts and her belief in its value in the community. "People who acquire an appreciation of the arts early on in life tend to lead richer, more fulfilled lives and tend not to go down the wrong road," said Bonucchi. To make it fun and rewarding, local art experts Wanda Carter, Thomas Fabinski and Alice Allhoff were on hand to judge the approximately 100 pieces of art which ranged from sculptures to paintings. Lincoln High School junior Jennifer Caudille took home the "Best of Show" honor for her tempera and ink work entitled "Fair Maid" and was awarded a $1,000 savings bond. Second and third place winners each received a $500 savings bond and another 20 students each earned a $50 savings bond for honorable mention. -mbourjolly@cutimes.com...

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 union leagues and NASCUS had already crafted comment letters to NCUA expressing their displeasure and concerns with the new regulation. "Regulatory overkill," "unreasonable burden," were some of the phrases used by leagues to describe the new regulation. "From a credit union standpoint, we don't want it," said Jim Brown, advocacy compliance and regulatory counsel for the Texas Credit Union League. "It will be an additional cost that is disproportionate to any benefits that it will bring. I doubt that most credit unions use the names of co-borrowers and guarantors for marketing purposes. This new requirement is regulatory overkill." The Florida Credit Union League agreed. "We are seriously concerned about the unreasonable burden the inclusion of this requirement would impose on credit unions," said President/CEO Guy Hood. "The FCUL believes this requirement to be extremely burdensome," he continued. "Credit unions simply do not have this information readily available. It will be time consuming and costly to retrieve, document and act on this information. It also seems to defeat the primary purpose of the rule, to protect individual privacy. It appears that current practices do more to protect privacy that does the proposed amendment." NASCUS' comment letter recognized that "the promulgation of privacy regulations was a massive undertaking, especially in light of the tight statutory requirements for publication of a final rule," said Brain Knight, director of state regulatory relations, NASCUS. But like the leagues, NASCUS expressed its concern over the complexities surrounding the amendment. The amendment creates an opt-out requirement for co-makers and co-signers of loans. Because of the way financials typically store loan information, NASCUS posited that the amendment could potentially create a significant regulatory and financial burden on credit unions. NASCUS also cited what it said was the lack of language in the amendment addressing how NCUA will monitor for compliance with the privacy rule, the role of the state regulator in enforcing privacy regulations, and enforcement in those states that may pass more stringent state privacy regulations. -...

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 that ultimately defeated a historic compromise financial omnibus bill worked out between credit unions and banks in the state (CU Times, May 10.) The state Senate concluded its deliberations for the 1999-2000 legislative session on May 2 without passing what all sides involved described as "a landmark bill for the state's financial services industry that would have benefited consumers of Wisconsin" that was passed by the Assembly Financial Institutions Committee by a 15-0 vote and the full Assembly on a unanimous voice vote. A spokesperson for Gov. Tommy Thompson confirmed the governor was "firmly behind the bill" and accused the Senate of "playing political games." The spokesperson further confirmed that "had the financial omnibus bill passed, Gov. Thompson likely would have signed it." Dave Anderson, executive assistant for the Wisconsin of Department of Financial Institutions who was instrumental in bringing the Wisconsin Credit Union League and the Wisconsin Bankers Association together to work out the compromise bill, said "the financial omnibus bill was a victim of politics, it's that simple." Anderson said that it took three weeks to bring the original Credit Union Consumer Choice Bill-S.B. 274-together with the WBA's Universal Bank Bill-A.B. 563. Since the department directly has banks under its regulatory umbrella and indirectly credit unions, because they have their own division, Anderson said DFI "had an interest in both measures." He further explained that "it's the philosophy at the Department of Financial Institutions that whenever we go to the state legislature with a bill, we've worked out all the legislative problems in advance. Although there's nothing in politics as a sure thing when it comes to passing a bill, when it came to the financial omnibus bill, we used our formula and came to the legislature with a complete package." Perhaps the first red flags signaling there might be problems in the state Senate with the financial omnibus bill were waved in March before the bill was brought up in the state Assembly. Anderson said he met with Assemblywoman Suzanne Jeskewitz (R-24), chairperson of the Assembly Committee on Financial Institutions, and Sen. Jon Erpenbach (D-27), chairman of the Senate Committee on Privacy, Electronic Commerce and Financial Institutions the evening of May 1. Describing the legislators' reactions to the omnibus bill, Anderson said Jeskewitz "embraced it." But Erpenbach, who was the main author of the original credit union bill, said "he wanted to take a look at it." What Anderson, credit unions and the WBA didn't count on though was a last minute `poison pen' amendment the Senate wanted added into the bill at the last minute. The so-called `wage lien' amendment would have given priority to workers' wages when a company goes bankrupt. Under current state law, financials that have lent money to a company that goes bankrupt can get their money back before workers are paid their wages.) A bill on this was passed by the state Democrat-controlled Senate last year but it wasn't considered by the Republican-controlled Assembly. "It was as if the Senate said `you won't consider our wage lien bill, we won't consider your compromise financial bill.' We're extremely disappointed the Senate didn't act on what we and other interested parties including the governor considered to be landmark legislation," said Anderson. "If the wage lien bill was so important, why didn't the state Senate add it to the financial omnibus bill in December (1999) during the public hearing or when the executive session voted on it in January?" asked Georgia Maxwell, director of Government Affairs for the Wisconsin Credit Union League. Erpenbach told Credit Union Times he was always in favor of the credit union and banking bills remaining separate "because the Universal Bank Bill had so many more important ramifications such as privacy concerns and legislative oversight, than the credit union bill." He defended the Senate tacking on the wage lien amendment to the financial omnibus bill. "That was the legitimate bill to attach it to because the bill deals with financial institutions," he remarked and added that, "Had the Financial Omnibus Bill come up for a vote, I would have voted for it." WCUL President/CEO Ron Halvorsen said the league knew going into the legislature that "it would be a push up to the end" and noted that the omnibus bill wasn't the only piece of legislation that got caught up in the contentious legislature. "We were thrown into the midst of it," Halvorsen remarked. "We thought we had friends in the Senate to fight for the bill, but politics took precedence." This being an election year, Halvorsen added, "Passage of the financial omnibus bill would have been something Democrats and Republicans alike could have taken credit for, it was good for all Wisconsin consumers." Although he's disappointed with the outcome of the financial omnibus bill in this year's state legislative session, Anderson is ready to take both houses on again when the legislature convenes in January. "We've proven what can be done when groups that usually don't work well together, put their differences aside and do." He promised, "to work to maintain the dialog we've initiated between the credit unions and bankers and will craft new legislation." Halvorsen too is ready for next year's legislative session. Two days after the bill's demise in the state Senate, he told Credit Union Times that although the outcome wasn't what he'd hoped for, he'd learned a lot about the political process and what can be accomplished. "We made a lot of friends in the state legislature, we showed them we're willing to compromise and go the extra mile when necessary." Erpenbach is also ready for the legislature to convene. Asked whether he would sponsor or author a new financial bill, the senator said, "Yes, I will author it if I am chair of the Senate committee." He added that the wage lien amendment would be part of a new bill. -...

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 that basically concludes that community banks and credit unions are a better deal for consumers when it comes to low-cost checking accounts and better service, according to a report in the American Banker. Credit unions received some glowing praise from the magazine. The article said credit unions are an excellent choice for consumers and said new members can open accounts with $100 or less and 88% of credit union members said they were completely or very satisfied with their credit union service, compared to just 63% of bank customers. SunTrust Bank, Atlanta, and SouthTrust Corp., Birmingham, Ala,, scored highest for convenience, cost and service. Interestingly, the magazine also rated Internet-only banks WingspanBank.com and Security First Network Bank highly....

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 country. Hank Klein, AFCU's CEO said the credit union considered three state league's service corporations before choosing the Texas Credit Union Service Centers. They chose the Texas CU League's CUSC because of their experience and cost structure....

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 union trade associations and CUNA Mutual. While a good deal of the discussion over the three-day event concerned the changing high tech environment credit unions will be doing business in and competing for members' loyalty in the future, research was also presented concerning the perception of credit unions by the public, their members and legislators. Attendees were urged to refine the grassroots effort that spearheaded the successful passage of The Credit Union Membership Access Act, H.R. 1151 and to implement a more consistent and effective grassroots campaign before tackling larger legislative issues. Among the speakers invited to address the meeting were Roger Swales, president/CEO of PSI Global in Tampa, Fla. and Chip Filson, president/CEO, Callahan & Associates....

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 Ray Algee as vice chairman. Algee is President/ CEO of Memphis Area Teachers Credit Union. Algee has served as a VolCorp Director for two years. Robert Arick was elected as secretary. Arick is manager of Memphis Publishing Company Credit Union. He has served in various positions on VolCorp's Board, including chairman and vice chairman, since 1992. VolCorp was granted a national FOM in March of this year....

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 meeting signifies the fact that CUSOs present growth opportunities for credit unions to offer to their members the services they demand and expect. NACUSO is here to help them and guide them to the business processes that will make them successful and profitable," said Dorsa. The networking surrounding the social events at the NACUSO conference is a sidelight to the opportunities being sought by attendees. Jeff Conrad, president of CU Services Inc., the CUSO of Pelican State CU in Baton Rouge, La., said "we came here to network with folks running CUSOs that are successful and have learned the lessons we haven't learned yet. We want to know what their main revenue streams are so that we can refine our own operation. That's our mission." Conrad's feelings are typical as NACUSO has drawn attendees from some of the largest CUs with CUSOs as well as some of the smaller ones....

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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 fund transfers in Internet gambling. The proposed legislation, the Internet Gambling Funding Prohibition Act would make it illegal to use bank instruments to pay entry fees, place bets, collect betting winnings or conduct other gambling activities through the Internet. Bank instruments covered under the measure include credit cards, debit cards, electronic fund transfers through money transmitting businesses, checks, bank drafts or similar instruments drawn by or on behalf of a person payable through a financial institution. The bill was introduced to shore up H.R. 3125, the Internet Gambling Prohibition Act which the House Judiciary Committee approved last month. That legislation would extend the current ban on gambling over telephone lines to the Internet....

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 shop for anything from clothing and vitamins, to jewelry and electronics. Participating CUs receive 50% of all revenue generated by member purchases. According to MembersResources.com, all stores in the Members Mall have been reviewed to protect members from seeing advertisements for products that compete with credit union products. The company said it will soon include Internet access, news, weather, sports customized home pages, and free e-mail to its menu of products. At press time, 45 CUs have contracted for MembersResources.com's free service....

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 access to the status of a customer's insurance coverage; a data mining tool that generates user defined queries and reports on the lender's entire database; and the ability to order hazard and flood coverage or initiate a tracking process on an uninsured property. For more information on FocusNet II visit www.swbc.com....

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 CUs over $250 million in assets are offering bill payment, that is the only segment doing much in this area. Bill payment has been dubbed as a killer app by many analysts yet the CU adoption rate to this technology hasn't taken off like home banking and a Web presence....

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 technology, strategic planning, CUSOs, personnel matters, organizational development, legal issues, and others. Basically here's how it works. A visitor can post a question, along with his or her contact information and any background information. One of the experts will e-mail that person back a response. The site does not post any information about the question asker or the asker's credit union unless that person requests that the information be released. "I've been very pleased by the response we've gotten during our first two weeks on the site," said Alix Filson, manager of e-commerce for Callahan's. "I loved the responses to the question about member business loans. Each consultant who responded had a different point of view-a very RL (Real Life) scenario," she said. For more information visit www.creditunions.com....

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. Consumers will be able to receive and pay their WebLink Wireless bills by visiting their choice of CheckFree-supported Web sites that include banks, brokerages, credit unions, portals and personal financial management software. "With electronic billing and payment, consumers are being freed from paper much like wireless communications has freed them from their landline phones," said Matt Lewis, executive vice president of CheckFree. -pgentile@cutimes.com...

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 approval in as few as ten minutes. iwayloan.com's "Loan Tracker" system allows CU members and employees to check the status of their mortgage application. eMiser will share revenue from each member's mortgage with the credit union. For more information visit www.emiser.com....

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 present their financing options to members at time of purchase....

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. However, that may be changing according to Frost & Sullivan research on the smart card market. According to the research there were 14.4 million smart card units shipped in 1999 in the U.S.. By the end of the forecast period, 2006, the units shipped is projected to rise to 114.7 million. The pay TV segment, which includes digital broadcast satellites (DBS) and PC/TV set-top boxes, such as Web TV, and the mobile segment are currently driving the market. Combined, these two segments were responsible for shipping nearly 93% of all units sold in the U.S. The greatest challenge facing smart cards is a revamping of infrastructure, found the report. Frost & Sullivan projects that it would take nearly $3 billion to convert just the hardware and over $12 billion to change the entire infrastructure in both direct and indirect costs. The rest of the world, including Europe, on the other hand, built their infrastructures from the ground up, based on smart card technology. Smart card adoption may be even slower in the U.S. banking sector. America's payment systems are based largely on magnetic stripe card technology. Until financials have a business case that proves smart cards can be a viable competitive advantage, this industry is reluctant to change, found the report. "U.S. banks haven't been able to nail down return-on-investment with smart cards," Frost & Sullivan analyst Alyxia T. Do said. "But banks have to face the fact that new competitors in the form of telecom operators, insurance companies, and transit authorities are changing the face of the financial competitive environment. Smart cards can be the banks response to increased competition." Frost & Sullivan is an international marketing and consulting firm....

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 speech to the Consumer Bankers Association. The $30 million First Accounts initiative will finance pilot strategies to help low- and moderate-income consumers without financial relationships open low-cost accounts at financials. It will also expand provisions of the Electronic Transfer Account (ETA) launched by Treasury last year to provide the estimated more than 10 million recipients of federal payments without accounts at credit unions or banks, the opportunity to set up a low cost electronic account at a financial to which their federal benefit can be directly deposited and which they can access. Thus far more than 500 credit unions and banks throughout the U.S. are participating in the ETA program. Summers said Treasury acknowledged that some potential ETA beneficiaries may be reluctant to take advantage of the program because they either live in an area where there aren't any ATMs they can use to withdraw their money, or because they lack safe access to an ATM....

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." Clarke American officials say the new check reordering product is a faster application to download than its predecessor, and members who access it can order multiple quantities of the same check design and select expedited delivery options. Members can also select from a variety of associated accessories. Check Reorder Express is available in a secure Internet environment 24/7 and can be accessed from a home PC either through their credit union's Web site or directly through Clarke American's Web site, www.clarkeamerican.com....

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 e-commerce transactions. Kevin O'Brien, chairman of NACHA and executive vice president of Chase Bank of Texas, and Elliott McEntee, president/CEO of NACHA made the announcement during NACHA's recent "Payment 2000" annual conference held here. To develop the rules, NACHA has formed a work group that will examine issues such as payment authorization, authentication, fraud deterrence, payment system risk, and minimum security standards for Internet-initiated ACH payments. The review is expected to be completed by September. NACHA's Internet Council will simultaneously develop an industry best practices guideline....

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 offering a new check image viewer to members as an option to their CentryxT e*tellerT. The eTteller option allows members to view check images on their computer screen during the check history display. Joe Shelby, sales and marketing manager for SOS Computer Systems said that within 24 hours of processing a share draft, members can access processing information through their credit union's Internet home page and account logon. "With the automated process, the member just clicks on the draft number and a picture of the front and back of the draft is presented for viewing," he said. Members also see the payee verification and balance reconciliation....

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 million consumers had their tax refunds deposited directly into their bank accounts - a 25% increase over last year. More than 230,000 authorized the Treasury to debit their financial accounts for $373 million of taxes. Another 186,000 charged more than $536 million of taxes on credit cards. In each case, the IRS said the number of electronic payments more than tripled from last year....

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 of its administrators would be subject to political influence. There is nothing new here and frankly, it has not been at all bad for federal credit unions. The reality is that this system has brought new faces into the credit union regulatory community and many of these people have brought novel insights, perspectives and ideas to their "regulatory" desks. Beginning with Larry Connell, the first Administrator of the NCUA, who brought sound financial experience to a fledging agency, followed by other Presidential appointees such as Ed Callahan and David Chatfield, the federal credit union network has been the beneficiary. And, yes there is a steep learning curve for all who earn an appointment to the NCUA Board, but all who have served have been quick learners like the two most recent Presidential appointees, Mrs. Wheat and Mr. Dollar who are a credit to the NCUA and to the movement. Mr. Welch goes on to imply that the credit union movement should influence the selection of its NCUA Board members. I suggest that the credit union community think twice about whether it benefits from accepting that responsibility. During my tenure at NASCUS, I have come to learn that a regulator best serves the regulated industry when the regulator is independent from that industry and is free to insure the institutions are sound. In that way, the users' confidence is rightfully placed. And by the way, who gets to make the recommendation? CUNA? NAFCU? NASCUS? AACUL? ACCU? Etcetera? Doug F. Duerr President/CEO NASCUS...

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 with Bank of America straight out of college. Ironically, I'm just one year older than my credit union! I love the credit union industry. Being able to make decisions based on member needs, instead of stockholder profits, is a dream come true. I've been at UNCLE Credit Union just over one month, and take it from a banker: Every American should bank at a credit union. Keep up the good work! Jim Ott CEO UNCLE CU...

WORLD WIDE WEB - Credit Union Times' third annual credit union Web site contest, the eAwards, is now open for entries....

In the words of quality guru W. Edwards Deming, "Unhappy customers don't complain, they switch." In the new economy, even happy customers are switching mostly because they want faster answers. Speed denotes quality, and quick service equals customer satisfaction in the new digital marketplace. Conventional archiving and digital item imaging As competition for financial customers increases, and speed of response becomes more crucial, credit unions must position their businesses for the future. If current trends persist, document and item processing through microfilming will migrate towards low-cost, digital desktop scanning and imaging systems. Archiving transaction items like checks, deposit/withdrawal slips, and payment coupons is a necessary daily task. But once the task is completed, the time spent searching through rolls of microfilm for a particular check or deposit slip means lost time and money. These systems do a good job of imaging and storing, but leave it to the operator to hand search through endless streams of pictures. The effectiveness of conventional archiving systems is measured by how fast they scan or film documents. But capture time is less critical than retrieval time. With conventional systems, retrieval time is measured in hours or days, not in seconds. Also, conventional archiving is picture-based and locked in an order that can't be changed, making retrieval very tedious. Contrast that process with timesaving retrieval searches by easily-identifiable parameters like date of capture, bank codes, plus account, item amount, check, and ABA numbers. Retrieval is instantaneous when numbers, dates, and digits are used instead of pictures. How digital item imaging works Digital imaging scanners are flexible, easy to use, have a more compact footprint, and are significantly less expensive than traditional microfilm processing. It only takes seconds to look up a check in question. The reduced time in recalling checks enables scanner-equipped credit unions to provide value-added services to members such as providing information in one phone call. Credit unions interested in comparing the advantages of digital item imaging versus microfilming should consider the number of checks they process each week, plus the time spent on check research, and the total time they will save by using a digital item scanner. * Scan more than one check at a time: Checks can be scanned in batches of up to 100. The same number can be assigned to the batch in the scanner as is used with the encoder, giving tellers another category to search quickly. * Scan more than checks: In addition to checks, deposit/withdrawal tickets, general ledger tickets, and teller receipts and tickets can be scanned. Most digital item scanners have built-in tape backups that, along with an external CD writer, store thousands of work image items. Combining scanning, indexing, storing, retrieval, and distribution functions in a desktop system provides a cost-effective alternative to conventional archiving. Because the key information within items is digitally imaged, a copy is just a mouse click away. The instant a work item is scanned, it is immediately indexed and appears on-screen. Users quickly catch errors caused by misfeeds, fogging, skewing, or overlapping. Since indexing is based on easily identifiable fields, and not picture-based images, users have unequalled flexibility in accessing items fast. * Digital storage benefits: Reduced storage space is another benefit of digital item imaging. Rather than storing numerous rolls of film, the images are captured on convenient CD's. Also, the scanner footprint is significantly smaller than a microfilm system. It sits in the teller area and occupies less space than a verification and receipt printer. * Sharing scanned images with members: The need for instant access to personal data will become more important as members increase their use of the Internet. Digital items can be shared across internal networks, printed on the system's desktop printer, and faxed or emailed to members. Think of the savings on courier costs alone. * Image processing and customer relationship management: A recent GartnerGroup research study mentioned that document imaging projects are increasing in importance as financial institutions recognize the customer relationship management benefits delivered by item imaging. The study cited the ability to archive old checks, claims, orders, etc. and to provide that information to customers on demand and how faster retrieval differentiates institutions and the level of customer service that they can provide. Measuring the value of digital item processing to your CU Like all complex decisions this one is more difficult in the short-term and transparent in the long-term. The decision is simple for a credit union contemplating the purchase of an upgraded microfilm system. Review all your options. The smart choice is to purchase an image processing system that positions your business in the digital economy where instant information retrieval, connectivity, and speed of customer service are competitive necessities. How long can you wait before you buy an image-processing system? The answer to that question depends upon several issues three of which are: how long your members are willing to wait for answers to their questions, how productive your employees need to be for your business to remain competitive, and can you afford not to have your data image-enabled. Clearly, microfilm-based item and document recording, storage, and retrieval are slow compared with mouse clicking through a digital imaging system. Time is money and digital imaging will cut transaction time by two thirds or more. Off-the-shelf digital systems, including software; countertop item scanner; PC with monitor; keyboard and mouse; CD writer; tape backup; plus fax and modem software will cost, depending upon accessories, between $15,000 and $20,000 per site. Amortize this cost over many years of processing up to 10,000 documents per day, and a useful life of 20 million total documents, and you have a very good financial deal, plus a system that delivers added value to your members. What is a good way to investigate digital item imaging? Call a local vendor and ask for a no-cost, no-obligation demonstration. Also ask for a list of clients who are willing to be called for a reference. You may even find a credit union that is close by and they'll let you stop by for a look. Right now you need the knowledge that comes from seeing for yourself, and in that knowledge lies the power of increased competitive advantage....

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 strongly about these self-evident truths and is working harder to rid it from the face of the earth than Jim Blaine, CEO of State Employees Credit Union in North Carolina. Blaine has taken on the elimination of predatory lending as a personal crusade on behalf of himself, his credit union, all credit unions, and every man, woman, and child who has been or could possibly be victimized by predatory lending. Over the years, Blaine's outspoken views, his credit union dedication, and his strong feelings regarding credit union philosophy have become well known. Also, because he manages one of the nation's most successful credit unions, at $6 billion plus, the second largest credit union in the country. Blaine has his own strong ideas on what a credit union should and shouldn't be-lots of branches, no indirect loans, an employee pay structure that keeps the staff's pay within striking distance of the CEO's, no frills, top-of-the-line member convenience, and an unwavering dedication to the financial needs of each and every member. This stamp-out-predatory-lending-at-all-costs crusader is also one of the smartest individuals ever to be involved with credit unions. The story is told that when he became irritated with CPAs talking their own mumble jumble, he decided to study and take the exam. He passed on his first try, becoming a CPA who could speak their language. It has even been rumored that if the lawyers bug him enough, he'll become one of them, too. Put all this together and it is easy to see why when Jim Blaine talks, credit union people listen. When he shouts long and loud, as he has been doing lately, about the evils of predatory lending, he especially gets the attention of credit union leaders. Blaine is on a one-man mission to get CUNA's Dan Mica to lead credit unions into battle to defeat and destroy predatory lending. His devotion to the cause has made him come across like a dog with a bone. He won't let go. Not for a moment. Therein lies the problem. Blaine doesn't know when to stop nagging, no, make that harassing, Mica, long enough to let the man do his job. Blaine has gone from pushing his worthy cause to attempting to micromanage CUNA, something that should be anathema to him as it is to all credit union CEOs. Mica knows how things get done in the association business. Blaine doesn't. Mica shouldn't tell Blaine how to manage his credit union. And he doesn't. Blaine shouldn't tell Mica how to manage a credit union trade association. But he is! Over and over and over again! Blaine has been bombarding Mica with a steady steam of videos, letters, and newspaper clippings and magazine articles, chastising him for not leading credit unions out of the predatory lending wilderness. They started out as thoughtful, serious, persuasive missives imploring Mica to make the elimination of predatory lending his number one (and maybe even his only?) priority. That's not the way it works in the big leagues of lobbying and legislative representation. As head of the largest credit union trade association, Mica has a lot of priority balls in the air. Predatory lending, as important as it is, is not the only thing on Mica's "to do" list on behalf of all credit unions. Blaine should know that. Instead, he continues to put unrelenting pressure on Mica, determined to get Mica to act the way Blaine thinks he should. Some of the latest faxes have been downright silly. One even went so far as to compare the Pope's recent plea for world-wide forgiveness for past sins of the most serious nature with a position Mica would find himself in if he doesn't jump through Blaine created hoops post haste. There is no question that Blaine's cause is a good one, and that it should be dealt with at every level of the credit union industry before an already serious predatory lending problem goes from bad to worse. But his methods do not justify the desired results. At one point Blaine said, "Add my vote of despair over CUNA's (Mica's) inattention to a movement-sponsored rule prohibiting predatory lending in credit unions. We seem to be all talk and no action." A "movement-sponsored rule?" Since when does the so-called credit union movement have the authority and power to promulgate rules for credit unions to follow? I think not! Would Blaine and his CU be as receptive to other "movement-sponsored rules?" Or would he prefer to manage his credit union according to policies set by his board? By the way, since Blaine is all over CUNA's back, perhaps he needs to be reminded that CUNA is not the movement, but only a part of it. For the record, CUNA is not "all talk and no action" as Blaine charges. Mica and CUNA are well aware of the importance of dealing with the abuses of predatory lending and are working diligently on the problem. Even if Blaine doesn't realize it, legislation is not created through harassment. Mica knows how the game is played and is solidly involved in possible legislative solutions. Anti-predatory lending legislation has already been introduced and CUNA is very much involved in it. No one should fault Blaine for his commitment to all things credit union. I certainly don't. But there comes a time in every battle when the front line troops need to leave the tactical decisions to the generals in charge. Meanwhile, Blaine needs to get on the backs of his CEO colleagues to make certain they are practicing what he is preaching. Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com....

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, Lehigh Valley, Pa., has named Deborah R. Goldsmith vice president of marketing and public relations. Pennsylvania Credit Union League, Harrisburg, has promoted Chantel Hassinger to supervisor of disputes and fraud services for its subsidiary, PACULServices, Inc. In addition, PCUL has named Ron Andidora compliance specialist and Jan Hartman government relations specialist. (PHOTOS sent via email) Rhode Island State Employees Credit Union, has elected the following officers to its board: A. Charles Moretti, chairman; Leo R. McAloon, Jr., first vice chairman; Henry Godin, secretary; Pasquale Marsella, Jr., treasurer; Frank DePalo, assistant secretary; Barry Levin, assistant treasurer; Raymond Petrarca, second vice chairman/board advisor; Joseph G. Iannelli, second vice chairman/board advisor; Milton Bronstein, second vice chairman/board advisor; Paul Taglianetti, second vice chairman/board advisor; Frank Walker III, second vice chairman; and Beverly Dwyer, second vice chairman. Syracuse Fire Department Employees FCU, N.Y., has appointed John Cowin chairman of the board....

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....

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 P. Wallace; James W. Wilson; and Janet E. Christian....

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 Office Plaza in downtown Eau Claire on June 1, 2000. This new space will enable RCU to conduct concurrent classes for new hires. Franklin Mint Federal Credit Union, Broomall, Pa., has announced the grand opening of its new Chester Branch. According to President John D. Unangst the new branch has proven to be a very necessary addition to the Chester Community. FMFCU has over $200 million in assets and serves over 42,000 members. Kansas Credit Union Association, Wichita, has moved its Wichita office to 650 S. Westdale, near Wichita's Town West Square....

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: collecting funds and band instruments after the Wilson Jr. High School fire; visits to Community Multi-Care Senior Center; Shared Harvest Food Bank; and Adopt-A-School at Immanuel Lutheran. First Financial FCU, Lutherville, Md., has been named the 2000 recipient of the Maryland State School Health Council Program Award for its KidsFirst Fund Health Care Services donation. The award is presented to an organization whose model program has contributed significantly to the promotion of comprehensive school health programs in Maryland. FFFCU has donated $50,000 to help students in need of health care. In addition, the KidsFirst Fund has awarded five $5,000 college scholarships to high school seniors; donated $30,000 to the Baltimore County Public Schools Dental Sealant Program for underprivileged second and third graders; and awarded $100,000 to 21 Baltimore County Public Schools for computers. FFFCU has over $266 million in assets and serves 40,929 members. Toledo Area Catholic Credit Union, Ohio, CEO Patrick McGrady has been named Professional of the Year by the Ohio Credit Union League. TACCU has $125.7 million in assets and serves 18,751 members. Kenton Rockwell Standard FCU, Ohio, Board President Douglas Clark has been named Volunteer of the Year by the Ohio Credit Union League. KRSFCU has $21.9 million in assets and serves 4,529 members....

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 Knoxville, UT Martin and Pellissippi State Universities by giving 5% of interchange income from the use of debit and credit cards to the general scholarship fund of the universities in their membership. First Atlantic Federal Credit Union, West Long Branch, N.J., has donated a new mountain bicycle to Fort Monmouth's Annual Youth Services Children's Carnival. Linda Pearson, a credit union marketing assistant, presented the grand prize winner, Memorial Middle School student, Brock McClintock, with the bicycle. Education Credit Union Council, Spanish Fort, Ala., an association serving educational credit unions, has donated over 400 books and tapes to the Children's Hospital in New Orleans. Since its inception five years ago, the Books for Children program has donated over 2,000 books. California Credit Union League, Rancho Cucamonga, through its open house golf tournament, has raised more than $1,200 for the Richard Myles Johnson Foundation to support credit union education. The foundation provides scholarships and grants for credit union volunteers, staff and members to attend workshops, conferences and educational events. Tampa Bay Federal Credit Union, Fla., President Dale F. Schumacher has donated $10,000 to the Ed DeBusk Memorial Scholarship Fund at Hillsborough Community College. Matched by a like amount in state money, the fund will provide for a minimum of one full scholarship annually for the son or daughter of a credit union member....

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 ranked in the top 25 out of 514 credit unions with assets between $100 and $250 million on Callahan's Return to the Saver Index. USA Federal Credit Union, Troy, Mich., has surpassed the $400 million asset mark in March. USA FCU membership grew 7.9% in 1999 and share balances increased 8.1%....

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 assets and serves 17,012 members....