MADISON, Wis. - (05/31/06) CUNA Mutual Group, plagued bysoaring fraud-related losses on credit unions cardsprograms, announced Tuesday it is raising rates on its cardscoverage. The credit union insurer said it has filed rate increaserequests with insurance regulators in all 50 states and theDistrict of Columbia. Proposed rate increases will across all typesof cards: ATM, debit and credit. The company, which has offeredplastic card insurance since 1981 as an endorsement to its fidelitybond, is paying out about $2 in claims for every dollar in premiumscollected as credit union losses escalated 56% last year to arecord $89 million. Only about half of the losses were covered byinsurance as dozens of credit unions have adopted high deductiblesor decided to pay losses themselves so as not to build a claimsrecord. And losses in 2006 are already on track for another 33%increase to a projected $120 million. The company hopes to obtainapproval from regulators for the rate hikes for an October 1effective date and begin implementing the rate increases on arolling basis, as credit union policies come up for renewal. CUNAMutual provides cards coverage for more than 6,000 credit unionsand some 50 million cardholders.
-
Powered by younger, affluent cardholders, American Express saw a 6% increase in billed business during the first quarter, while weak growth still plagues its small-business segment.
47m ago -
For the better part of the past decade, the Federal Reserve Board in Washington has played a more active role in presidential searches by regional reserve banks. The shift seems to have made the system more diverse, but some argue it's at the expense of regional bank independence.
1h ago -
Beth Johnson, a self-described math geek, is driving the bank's ESG strategy and training its employees to keep pace with industry trends.
3h ago -
The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
April 18 -
The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
April 18 -
The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
April 18