NATIONAL HARBOR, Md. — Because of the strong trust theyengender, credit unions are in a solid position to generate moreuse of their existing credit cards or enter the market for thefirst time.

That's the advice that CMC Vice President Dean Happe gaveattendees at NAFCU's 42nd Annual Conference and Exhibition.

Happe, whose company helps credit unions manage card programs,gave five suggestions for entering the market or strengthening acredit union's presence in the market: design the product, build abusiness case, devise or evaluate your service strategy, develop astrong portfolio-management strategy and develop an approach formarketing the product.

He added that credit unions are uniquely positioned to do wellin the credit card business because their memberships are growingand they are perceived by members as offering products at a goodvalue.

Happe noted that credit unions have about 3% of the credit cardmarket, but with the problems that banks are having, there aretremendous growth opportunities.

Credit unions that offer credit cards will have to deal with arange of changes in the law because of legislation passed earlierthis year.

In a separate session at the conference, attorney Andrew Lorentzoutlined all the changes that will take effect between now and nextAugust.

Some of the changes include:

o Starting later this month, card issuers must mail statements21 days before they are due and notify members 45 days before ratechanges take effect.

o Beginning next February, there can be no changes in APRs, feesand finance charges for at least the first year of a new account,except for promotional rates and penalties if a payment is morethan 60 days late.

o As of August 2010, penalty fees must be “reasonable andproportional,” to the omission or violation and risk-basedrepricing must be reassessed at least every six months.

–[email protected]