St. Mary’s Unveils Payday Loan
MANCHESTER, N.H.–St. Mary’s Bank, the nation’s oldest credit union, last week announced it is offering its members a payday loan product.
Introduction of the new product comes as the state legislature is debating curbs on payday loans.
Known as MyPay, the loan has a fixed rate of 18%, significantly lower than the 36% cap the state is proposing to place on payday lenders.
MyPay borrowers are allowed 12 loans per year within a line of credit of $250 or $500. Their monthly balance must be paid in full before taking out another advance, but there are no late fees or penalties for prepayment.
Apple FCU Grows 3 More Branches
FAIRFAX, Va.–Apple FCU, which serves the educational community in suburban Washington, last week broke ground on a new branch in Kingstowne, one of three new facilities planned this year by the $1-billion credit union.
Rollins-PCI Construction, which specializes in building bank and credit union branches, is constructing the Kingstowne facility.
The other new branches are slated for Vienna and Chantilly, Va., and are expected to be opened this fall.
Goldenwest Gives $50K To Schools
OGDEN, Utah–Goldenwest CU announced it will donate more than $50,000, raised during the credit union’s eighth annual “5K For Schools” run, to nine local schools.
The race drew the largest crowd in the event’s history, with 2,600 runners and walkers registered. All registration fees will be donated to the schools, with Goldenwest adding $5 for each entry received.
Pen Air Gives $50K To Corps Relief
PENSACOLA, Fla.–Pen Air FCU said it has contributed $50,000 to the Navy-Marine Corps Relief Society. The organization offers interest-free loans to military families.
Greater Warren CU Promotes CFO
WARREN, Ohio–Greater Warren CU announced the hiring of Brain McCue as its new president and CEO.
McCue has been executive vice president, vice president of finance and controller for the $61 million credit union.
Manager Charged With Embezzling
DEER PARK, Texas–A former branch manager for Associated CU last week was charged with stealing $246,000 from the credit union by granting loans in the names of relatives and friends without their consent.
Edie Minter, 44, was charged with five counts of identity theft, five counts of bank fraud and one count of theft. Minter was manager of the credit union’s Santa Fe, Texas, branch.
Workers’ CU Gets Training Funds
FITCHBURG, Mass.–Workers’ CU said it was awarded a $76,665 workforce training grant from the state. The funds will help train 151 employees at the $600 million credit union.
SCCCU Partners On Microloans
SANTA CRUZ, Calif.–Santa Cruz Community CU said it is teaming up with El Pajaro Community Development Corp. to make $100,000 worth of microloans available for businesses served by the organization.
To qualify for the loans, clients are required to take business training workshops.
The credit union will offer short-term loans to businesses served by the El Pajaro CDC ranging from $2,000 to $5,000 for a term of one to two years at a 9% fixed interest rate. The loans are 100% guaranteed by El Pajaro CDC deposited funds.
CU Helps Jobless Dress For Success
CLINTON TOWNSHIP, Mich.–Central Macomb Community CU is working with the state’s “Michigan Works” program to coach thousands of job-seekers on good interviewing skills and dress them for job interviews.
The credit union not only is offering seminars on interviewing skills and techniques, but collecting used clothes at all of its branches to help them with their appearance. The seminars cover writing of a cover letter and resume, professional image and appearance, and answering tough questions during an interview.
Maine CUs Tally Volunteerism
WESTBROOK, Maine–Representatives of Maine’s credit unions donated a record 23,004.5 hours of their time during 2007, according to the Maine league.
That time represents a donation of $350,000 worth of work, based on an average hourly wage of $15.25, using figures from the Bureau of Labor Statistics, the league said. The Maine league coordinates the program Credit Unions Share for ME, which in 2007 saw a significant increase (13%) from the previous year with 2,304 individuals from credit unions recording time spent volunteering in their communities.
In 2007, the top five credit unions contributing the most volunteer hours were: Rainbow FCU in Lewiston (2,517 hours); Saco Valley CU in Saco (2,501); Five County CU in Bath (1,920.75); Midcoast FCU in Bath (1,698.50); and Franklin-Somerset FCU in Skowhegan (1,343.25). The top five credit unions with the most total volunteers were: Rainbow FCU (215); Five County CU (191); Saco Valley CU in Saco (177); Midcoast FCU in Bath (172); and (tie) Ocean Communities FCU in Biddeford and NorState FCU in Madawaska (118).
Pioneer Absorbs Hospital CU
ASHWAUBENON, Wis.–The $2.5-million St. Mary’s Credit Hospital CU is being absorbed via merger by Pioneer CU. SMCU said that about 20% of its 900 members already belong to the $328-million Pioneer CU.
CU CEO Jumps To Andrews CU
SUITLAND, Md.–Andrews FCU said it has hired Chris McDonald, currently CEO of MobilOil FCU in Beaumont, Texas, as its new president and CEO.
At Andrews, McDonald will succeed Michael Hale, who left the $830 million CU at year end. Deborah Matz, the CU’s chief operating officer and a former member of the NCUA Board, has been serving as acting CEO since then. MobilOil FCU, which has $230 million in assets, promoted its chief operating officer, Kim Heinze, to succeed McDonald as CEO.
Payday Lending Explored
MADISON, Wis.–CUs can learn how to develop a payday lending alternative program and about the 2007 Excellence in Lending Award winners in two new white papers from the CUNA Lending Council. “Payday Lending: The Credit Union Way” guides CUs through the process of developing a payday-alternative loan program. The other paper illustrates of the successful lending programs put together by the winners of the annual Excellence in Lending Awards.
