RANCHO CUCAMONGA, Calif. - The California Credit Union Leaguesaid last week 30 of its 417 credit union members have now resignedfrom the League opting out of mandatory participation in its $6million advocacy campaign. "Well, I'd say it's disconcerting tohave even one resignation but given where we are, the results we'regetting so far from the ads have been extremely positive," declaredRichard Ghysels, chairman of the League's Ad Hoc Public AdvocacyCommittee, which has been shepherding the high profile radio/printcampaign launched Jan. 17. Ghysels, who also is president/CEO ofFirst Financial CU in West Covina, said initial research shows "theneedle moving" every time the 60-second spots are aired with acurrent cycle of ads running from April through June. The adsproduced by Foote Cone & Belding, a New York agency with LosAngeles operations, have been appearing in 28 markets in Californiaand Nevada and will continue through 2005 on an every other weekbasis. The image ads stress differences between CUs and banks andare targeted at opinion leaders as part of a long-running campaignto thwart bank attacks. "I think it was about time the League didsomething in this area and I'm pleased with the feedback I'mgetting locally-people saying `I'm hearing a lot about creditunions lately'" declared Brett Martinez, president/CEO of the $1billion Redwood CU in Santa Rosa. Martinez said "it is onlyunfortunate we have to be in this defensive mode," adding theLeague program is "the right thing to do." "I can just hope thebankers would give up now, but that is wishful thinking," saidMartinez. The League said the resignations will have little impacton the overall association budget considering "we have collected95%" of normal dues income. The separate assessment for theadvocacy campaign has already surpassed $6 million withcontributions from affiliates, associate members and suppliers.League officials have declined to give a size or geographicbreakdown of the 30 resignations but said most are in the small tomedium range-below $150 million in assets. The League wasparticularly pleased, however, that all of its members in Nevadare-upped. Ghysels said members of the League leadership have beenmaking calls to departing CUs trying to get them to return. PatsyVan Ouwerkerk, former co-chairman of the Leagues' Public AdvocacyTask Force, which originally crafted the ad campaign in 2004, saidsmall CUs resigning from the League may have done so possibly "forincome reasons." Van Ouwerkerk is also president of Travis CU inVacaville. Confirming her view was the chairman of the League,Diana Dykstra, president/CEO of San Francisco Fire CU, who said CUsshe has talked to claim "it is a matter of pure mathematics." Manyin the $50-$150 million range "operating now in a rising rateenvironment find themselves financially strapped" and decided toforgo the extra expense for dues even though they support theLeague philosophy. There was one isolated case, she said, of aboard urging non-payment "since they were about to merge." One CEOof a $60 million CU told Credit Union Times he was disaffiliatingbecause he could not afford another expense since his CU was justcoming out of a turnaround position. "The assessment just took usover the top," he said adding he might rejoin next year whenconditions improved. Dykstra said the League Board does look atwaiving dues payments or offering assistance to struggling CUs "ona case by case basis." "We try to be understanding," she [email protected]

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