Membership Growth Remains Robust
LANSING, Mich.-Membership at Michigan's credit unions has hit its highest level and has now grown for seven straight quarters, according to the Michigan league. The state now has 4.56 million credit union members, up 15,776 from the previous quarter. The MCUL reported 46% of Michiganders are credit union members, 16 points higher than the national rate.
Other notes from Michigan:
* Checking account balances grew more than 9% during Q1, and since the end of 2008, checking balances are up over $2 billion, representing 50% growth in just over four years.
* Michigan CUs financed more than $1 billion in home loans, up from $882 million from the same period in 2012. Michigan CUs financed more in fixed rate mortgages in 2012 than in any previous year.
* Loans to businesses rose 6.9%, compared to 2.6% growth in the same period in 2012.
* Total student loans reached $100 million for the first time, with growth of 5.4% in the first quarter.
States Join In Opposition To Lawsuit Settlement
NEW YORK-Numerous U.S. states have joined big-box retailers and merchant trade groups in objecting to a $7.25-billion Visa and MasterCard class action settlement. The attorneys general of California, Ohio, Arizona and six other states are arguing the pending deal could strip them of their rights to sue the networks in the future. Forty-eight states and the District of Columbia signed a brief in support of the objections.
Retailers and trade groups argue Visa and MasterCard conspired to set fees at arbitrarily high levels and have prevented them from lowering their costs by imposing rules that merchants must abide by to accept their cards. They argue that the settlement attempts to block them from being future claims against the two card networks.
"As drafted, the settlement agreement opens the door for defendants to assert settlement releases against attorneys general or other law enforcement agencies in future law enforcement actions related to the payment card industry," the states said in their filing.
LFCU To Serve Indian Reservation
MOSCOW, Idaho-NCUA has approved a field of membership expansion for Latah FCU that will provide financial services on the Coeur d'Alene Indian Reservation. The expansion will allow the $67 million-asset credit union to serve neighboring Benewah County and the portion of southern Kootenai County which lies within the Coeur d'Alene Indian Reservation. The credit union said it plans to open a branch in Plummer, Idaho.
60 Members Hit By Card Fraud
KINGSPORT, Tenn.-Police are investigating debit card fraud involving at least 60 members of First Kingsport CU. Fraudulent purchases began showing up over the Memorial Day weekend with transactions made in Nevada and Florida. The credit union is issuing new cards to members and is fully reimbursing the fraudulent purchases, which range from $25 to $900. Police are investigating how thieves obtained account information to carry out the fraud.
Restaurant Staffer Skimmed Cards
DES MOINES, Wash.-A 20-year-old employee of Red Robin Restaurant was arrested for allegedly skimming credit cards from customers - at least eight of them BECU cardholders - and using the information to make $16,000 of purchases on the accounts.
Sheriff's detectives were alerted to the crimes by a fraud investigator from BECU, who told them eight BECU members have had fraudulent activity on their account-and in each case the common "point of purchase" was the Red Robin in Des Moines.
Detectives learned that one employee processed all eight transactions. The transactions took place between November 2011 and March 2013.
Detectives said there possibly could be more victims. At this point in the investigation they only have received documents from the victims who bank at BECU. Another search warrant will be sought to identify all the restaurant customers whose credit cards were processed by the suspect.
Branch Dedicated To Charter Member
UPPER MARLBORO, Md.-Prince George's Community FCU dedicated its newest branch to Virginia Stallings, a charter member who started the credit union by making a $5 deposit in 1967. The newest of the $125-million credit union's four branches in the county will bear Stallings' name and a plaque with her likeness will hang on the lobby wall.
SaveUp One Of 11 Finalists
LIVONIA, Mich.-CU Solutions Group announced its partner, SaveUp, is one of 11 finalists competing for the Annual Core Innovators Mega Challenge from Core Innovation Capital and the Center for Financial Services Innovation (CFSI).
Finalists are competing to be named the most promising new idea in serving the 80 million underbanked American consumers known as the Emerging Middle Class. The winner receives $10,000, broad media exposure and a complementary consulting session with the CFSI Advisory Services team.
"CU Solutions Group and SaveUp have a shared mission of helping credit unions serve the underbanked," said CU Solutions Group President and CEO David Adams. "SaveUp leads the pack in using innovative technology to engage members while giving credit unions the opportunity to become a steady financial partner in their members' future."
The 2013 Mega Challenge will be featured at the 8th Annual Underbanked Financial Services Forum in Miami in June. Finalists are asked to present a live show-and-tell demonstration of their product, take part in a Q&A, and will be voted on by the live audience at the forum. Attendees include hundreds of financial services executives, investors, researchers, nonprofits and government leaders.
"The Mega Challenge is truly a unique opportunity for us to showcase all the benefits SaveUp has to offer financial institutions," said SaveUp CEO Priya Haji. "We pride ourselves on offering credit unions and their members, especially Gen X and Gen Y, innovative solutions to help them save money and pay down debt. We feel we are a natural fit in meeting the needs of the Emerging Middle Class."
Members Save $250K Using Program
MAPLE GROVE, Minn.-TopLine FCU said it has saved 1,000 members almost $250,000 in two years with its round-up savings program, called Sum-It-Up Savings. Each time TopLine members who are enrolled in the transfer program make a purchase or ATM transaction with their TopLine Check Card, the total is automatically rounded up to the nearest whole dollar - and the difference is transferred into their savings account.
TopLine said its members add slowly and steadily to their savings, just by doing what they are doing every day - using the debit card tied to their TopLine checking account to pay for groceries, gas and other purchases.
Sullivan, First Full-Timer At Jeanne D'Arc, Dies
CHELMSFORD, Mass.-Lucille Sullivan, the first full-time employee at Jeanne D'Arc CU and possibly the first female credit union or bank CEO in Massachusetts, died May 18 at her home here at 89. Just before World War II, Sullivan met her future husband, Arthur Sullivan, at Union National Bank, where she worked as a part-time bookkeeper. Bank policy prohibited married couples from working together. As the war took away many men to fight overseas, she was given a job offer at Jeanne D'Arc CU. She would become the credit union's first full-time employee in 1975, when she was named treasurer. More than a decade later, in 1987, Sullivan became president and CEO.
Sullivan was the first full-time employee in 1975 because banking hours were so limited then, only part-time workers were needed. Jeanne D'Arc did not even open its second branch, in Dracut, until 1997. Rapid growth through mergers and new branch locations did not take place until the 2000s.
In the 15 years in which Sullivan was Jeanne D'Arc treasurer, the credit union's assets grew from $20 million to $167 million. She retired in 1990. Jeanne D'Arc CU is now the Bay State's sixth-largest credit union with more than $1 billion in assets.
Fifth Grader's Art To Be Featured On Debit Card
MANSFIELD, Texas-Artwork by Tiffany Nguyen, a fifth-grade student at Garner Fine Arts Academy in Grand Prairie, will soon be appearing in the wallets of hundreds of Texas Trust CU debit card holders supporting the Grand Prairie ISD Education Foundation. Nguyen's design was selected from among 242 entries submitted from 25 schools by Grand Prairie students in kindergarten through fifth grade as part of the Texas Trust Spirit Debit Reward card Design Contest.
An independent panel of judges selected six finalists, which included an entry from each grade level (K-5). Each finalist's artwork was posted on Facebook, where students, parents, teachers and the community voted for their favorite design. More than 17,998 votes were cast on Facebook, and those votes were combined with the scores of the judges to determine the final winner.
Nguyen's design will be featured on the GPISD Education Foundation Spirit Debit Card, which is used by school officials, administrators, and community supporters to help raise money for the foundation. Every use of the GPISD Education Foundation Spirit Debit Reward Card will earn 15 cents from Texas Trust.
"Schools in Grand Prairie, Cedar Hill, Mansfield, and Athens, have earned nearly $255,000 in the last two years through their school Spirit Debit Reward Cards," said Jim Minge, president of Texas Trust. "The art on each Spirit card has been designed by a student, which promotes school spirit and pride."
One-Fifth of Georgians Have Student Debt
DULUTH, Ga.-Twenty-two percent of respondents to a Georgia Credit Union Affiliates (GCUA) survey indicated they have an existing student loan, and 12.8% of them are not on track to pay it back.
The GCUA survey found that more than 5% of respondents owe between $10,000 and $20,000, and 10% of respondents owe more than $20,000.
"Falling behind on your student loan payments can be very costly," said Michael Huff, project management manager of Associated CU in Norcross, Ga., in a statement. "It also damages your credit, which can have negative ripple effects to all aspects of your financial life."
Huff added that the extended payment option many borrowers take "can turn a $25,000 student loan debt into $52,000 in total amount paid. And 25 years spent in paying off college debt can really impact their borrowing power for future purchases like a new car or home."
The GCUA noted that tuition costs have risen by more than 26% since 2005 and, as a result, loan debt has risen to an estimated $986 billion, according to the National Center for Education Statistics.
IT Exec Loses His Hair-But For A Good Cause
BRAINTREE, Mass.-John Krupcheck, a longtime employee in the IT department at Liberty Bay CU here, agreed to have his head shaved as part of "2013 Buzz Off for Kids' Cancer"-an annual event supporting Boston Children's Hospital which is organized by Boston-based charity One Mission. This was Liberty Bay's second year to participate in the event, with total donations raised by the credit union totaling $12,500.
The event took place at the home of the New England Patriots-Gillette Stadium-on June 9 and culminated with fundraisers having their heads shaved.
Liberty Bay said it took full advantage of several marketing channels to gain donations including social media, in-branch merchandising and a "krup-cake" bake sale. "John's participation was great," according to VP-Marketing Kelly Amato. "He's been a part of the Liberty Bay family for a long time, which made it easy to get support from members and employees."
Liberty Bay also supports the One Mission organization through a coin machine program in which all fees associated with the machines are donated directly to the organization.
CU Seeks Foreclosure On 'Ax Men' Lumber Mill
SUPERIOR, Wis.-A logging company featured on the History Channel's "Ax Men" series has three months to find a buyer before its forest and lumber mill goes to a sheriff's sale, under a foreclosure order issued to Superior Choice CU.
Credit union officials came down to the mill and seized the property and evicted top executives of Wisconsin Woodchuck after the company failed to make payments on an amended loan agreement.
The financial struggles of the mill and its owners were featured on the reality television program "Ax Men." The episodes featured efforts to revitalize the company following a Dec. 2011 bankruptcy filing. The company launched a crowd-funding campaign via the TV show to keep the business afloat but the project raised only $8,697, far short of the needed $56,000.
A foreclosure judgment was entered for the credit union in state court against the mill owners for almost $843,000, according to court records. The move is a continuation of foreclosure proceedings the credit union began in November 2011, which were stayed because the lumber company filed for Chapter 11 bankruptcy a month later.
The credit union and the mill owners entered an agreement in which the loggers would come out of bankruptcy protection and pay reduced payments through May as they sought buyers or refinancing options, according to court records. They did not make the May 24 payment of $3,500.
The looming closure of the mill comes as the company was working to disassemble and reclaim about six million board feet of lumber in the 1880s-era wooden grain elevators on St. Louis River Bay.
According to the foreclosure judgment, the company has three months before the elevator buildings and equipment will be auctioned at a sheriff's sale. The full amount would have to be paid to stave off the sale. The court order also gives Superior Choice immediate possession of collateral including accounts receivable, inventory, equipment, trade names, customer lists and other intangibles.
About five million board feet of lumber remain on the site.
Western Bridge's Perkins Joins Ice Energy
GLENDALE, Calif.-Phillip Perkins, the investment manager who ran WesCorp under NCUA conservatorship after it failed, was hired as chief financial officer by Ice Energy, a provider of distributed energy storage and smart grid solutions. Perkins, who at the time was a vice president at Delaware Diversified Income Fund in Philadelphia, was hired by NCUA in March 2009 after the federal regulator took the one-time $34 billion corporate under conservatorship. Perkins ran WesCorp while the remnants were being sold off and liquidated by NCUA over the next three years.
Women's Wealth Initiative Hosted
SAN FRANCISCO-San Francisco Federal Credit Union recently held the first session of its new Women's Wealth Initiative, a financial education group for women in the Bay Area.
The initial meeting on May 16, 2013, drew 12 participants. San Francisco Federal invited members and non-members of diverse backgrounds to attend. The first session focused on unique financial challenges women face and strategies for meeting money-related goals.
"We wanted to provide women with a platform for discussing financial issues that matter to them," said Lara Brecher, business development officer at San Francisco Federal Credit Union. "We also hoped to learn how we can help women succeed as they face these issues."
Attendees first took part in an activity that gauged confidence levels for various financial milestones, such as making large purchases, paying off debt and funding a child's education. Participants then contributed to a roundtable discussion with guiding questions about financial attitudes and behaviors. The meeting ended with a raffle in which one attendee won a gift basket filled with financial education books, tools and more.
Participants commented on how useful they found the event for determining their own financial goals. "It was great to get perspective from other people and have [credit union] staff available to chat with," said one attendee. "I loved the warmth from everyone."
"We'll use the feedback we received to develop financial products specifically tailored to the needs of women," said Brecher. "We're thrilled with the success of this first event, and we plan to hold more women-focused events in the future."
CU Chili Challenge Set For August
SAN DIEGO-Credit unions in California, Nevada and Arizona are being invited to compete for the best chili award and $10,000 for their pet charities at the "Xpress Data, Inc. Credit Union Chili Challenge" at the Del Mar Thoroughbred Club racetrack on Aug. 3.
The chili contest is sponsored by Xpress Data and is sanctioned by the International Chili Society. The credit union chili team finishing in first place will qualify to compete in the Homestyle Division of the 47th Annual International Chili Society World's Championship Chili Cook-Off in Palm Springs, Oct. 11-13.
Founded in 1967, the International Chili Society sanctions more than 200 chili cook-offs every year. All winners of ICS sanctioned cook-offs qualify to compete for cash prizes and awards at the World's Championship Chili Cook-Off held each year in October.
"We see it as an ideal venue to display -and taste-some fantastic chili recipes but also help spread the word about the value of credit unions to thousands of consumers at a very popular venue in Southern California-the Del Mar Thoroughbred Club racetrack," said Mike Cooper, CEO of Xpress Data.
Participating credit unions can enter teams having a chief cook and up to three assistants. Trophies will be awarded for first, second and third place chili recipes-along with best booth decoration and best chili team showmanship.
28 Complete Lending Course
ELGIN, Ill.-Twenty-eight people have earned the first-ever "Certificates of Completion" from the Advanced Lending Institute offered by Lending Solutions Consulting, Inc. The instruction was led by Rex Johnson and David Tuyo.
The ALI requires attendees to have previously graduated from LSCI's University of Lending and to also have attended online financial courses through its partner, California Southern University. Topics of the lending school included ethics in the credit union movement and case studies, along with the opportunity to dissect their own credit union's financial health.
Targeted Rewards Are Launched
SAN DIEGO--San Diego County CU has signed with Cardlytics to provide targeted rewards to its members.
Relevant offers are now presented on each member's checking account detail page within the credit union's secure online banking platform-achieved by leveraging information about previous purchases. By clicking on the offers, account holders can activate or "accept" rewards before redeeming them at a number of national, local and online retailers. There are no coupons or promotion codes required and no member data leaves the credit union's secure environment.
Members can easily opt-out of the rewards offers, but activation rates prove broad consumer acceptance of Cardlytics' programs. Cardlytics' offers are now targeted against some 200 million transactions per week.
The $6 billion credit union implemented the platform through an ongoing partnership between Cardlytics and Fiserv, which provides SDCCU with Corillian Online, its online banking solution.
In addition to the core Cardlytics solution that San Diego County CU implemented, the partnership between Cardlytics and Fiserv also provides access to 'Cardlytics for Rapid Deployment,' for institutions wanting a lighter implementation, and 'Cardlytics for Credit,' for CUs with pure credit card portfolios.
