ORLANDO, Fla. — One thing was clear from Credit Union Times'recent conference on non-interest income: credit unions want it andneed it.

While economists thought briefly that the yield curve might beup righting itself, that does not appear to be the case, observedWescom Credit Union CEO Darren Williams, the keynote speaker atCredit Union Times' conference, “Credit Union Non-Interest Income:Strategies for Developing Vital Income Stream.”

Williams said of his credit union and others, “We need toincrease non-interest income in the years to come.” He expressedstrong concerns over various potential legislative and regulatorymaneuvers that could take that opportunity away.

Williams specifically noted insufficient funds and overdrafts asa target of the Democratic Congress. Carolyn Maloney (D-N.Y.) hasintroduced legislation–expected to be picked up again nextyear–that would place overdrafts under the Truth-in-Lending Act.This would require reporting overdraft fees as an APR, which wouldcreate statutory issues for credit unions given the 18% usuryceiling.

With an overdraft under TILA, credit unions would not even knowif they were violating the Federal Credit Union Act until afterthey did it. Additionally, calculating an APR would be impossibleuntil after the amount of the overdraft and the length of the termcould be determined.

Williams also pointed out that interchange fees have been drivenout of Australia.

Wescom has taken the innovative approach of purchasing a localcheck cashing chain and giving it a credit union twist. Williamsexplained that the separately branded storefronts are offeringpayday advances, check cashing, and remittance services. WithWescom's Easy Start Savings Program, introduced in September 2007,a $37 payday advance fee has a $20 rebate built into it. After sixmonths, the now-credit union member can access the funds through aspecial account. He said over 30% of the payday advance clientshave signed up for the accounts with $5,200 in fees rebated.