WARRENVILLE, Ill. — In the latest evidence of declining check volumes and the need for credit unions to pare costs, Members United Corporate Federal Credit Union said this week it is planning to buy and merge the item-processing unit of the Illinois Credit Union League.

“Because of our size and efficiency, we are better able to manage this kind of operation under the same pricing formula offered to those credit unions which have been using the Illinois League,” said David Preter, president/CEO.

Under the preliminary deal formally announced late last week during the annual convention of the Illinois League, Members United is planning to merge the 4.5 million a month servicing business of ICUL Service Corp. into its Indianapolis operation during the third quarter.

Preter said Members United, which already does 20 million a month item processing for CUs is on the lookout for further expansion in this area. He noted that rising online applications and Internet technology continue to trigger a 12-14% yearly drop nationally in check volumes.

“With the reduction in the numbers of checks written, we believe consolidation is necessary to ensure credit unions continue to enjoy competitive advantage,” said Dan Plauda, president/CEO of the Illinois League.

ICUL, a major vendor to 2,000 CUs across the country, has been serving approximately 175 CUs in the Seventh Federal Reserve District on item processing.