Fifth Third Bank said it has partnered with ProDraft Services Inc. to provide correspondent banking services to the CUSO's credit union owners and clients.
Members of the $252 million Midwest Corporate FCU haven't yet voted to liquidate their cooperative. However, Board Chair Eric Musland, CEO of the $16.4 million LaMoure Credit Union, said liquidation "will probably happen."
The $955 million Town North Bank reached the brink of undercapitalization when it sold its card processing business to Fifth Third Processing Solutions on July 6 for an undisclosed price.
Members of the $252 million Midwest Corporate FCU have decided the fate of their cooperative: liquidation.
After almost 35 years processing credit union credit card transactions, Town North Bank has sold off its last stake in card processing.
Town North Bank, a credit union-owned bank, has sold its card processing division to Fifth Third Card Processing.
Some credit unions are still making small value, short term loans that they say are not payday loans, but really they still are, according to a report developed by the National Consumer Law Center.
Problems at corporate credit unions aren't driving a mass exodus of members seeking other providers.