CLEARWATER, Fla. — While some banks are scrambling to make pricing changes in advance of implementation of the CARD Act, Bill Lehman, VP-portfolio consultant services with CSCU here, believes most CU card-issuers will not be doing the same.
"Philosophically, it's nothing new for [credit unions]," said Lehman, whose company processes more than 12 million credit and debit cards. "We don't see credit unions changing things because of it. I do see credit unions investigating variable rates, but I don't seem them raising their rates at all."
What CUs should be doing is taking advantage of related media coverage, advised Lehman, pointing to mass media reports urging consumers to seek out credit unions. Another recommended strategy: hitting mailboxes with direct mail. "Now is the time to start some acquisition campaign, concentrate on acquiring accounts — focus on acquisition," he said.
Lehman does not expect any moves by bank issuers to increase fees and APRs will negatively lump credit unions in with those institutions. "However if you sit in your credit union idle and let the consumers interpret the press, yes. If we go out with some strong marketing, no," he said. "We have to be proactive. If there's ever a time, now's the time. Include employee incentives, utilize the press, newsletter articles, promotions, direct mail. Just talk about it - don't be quiet."
