NCUA To Host Webinar
Featuring Head of CFPB
ALEXANDRIA, Va.-NCUA will host a webinar on Feb. 8 featuring the new director of the Consumer Financial Protection Bureau, Richard Cordray. Set for 3 p.m. EST, the webinar will include in addition to information on the CFPB, updates on NCUA's NCUA's Regulatory Modernization Initiative and corporate CU resolution. Participants will be able to submit questions. For info: www.ncua.gov.
Save To Win Spreads To
Nebraska, 9 CUs Sign On
OMAHA, Neb.-Nine CUs and the Nebraskal League have launched a new savings contest that will offer a $25,000 grand prize as part of an inducement to new member savings. The "Save to Win" sweepstakes is modeled after a highly successful contest by Michigan CUs that awarded a $100,000 grand prize last year and is poised to award a similar amount over the next few weeks.
By making a $25 deposit, members at one of the nine participating CUs will be entered into a drawing to win a $25,000 grand prize and monthly prizes. Members are guaranteed to have more money saved than when they started, because they keep all the money they have saved plus interest.
Service CU Offers Method
To Avoid ATM Surcharges
PORTSMOUTH, N.H.-Service CU last week unveiled a new ATM surcharge and Visa International Service Assessment fee refund program, essentially making all cash withdrawals at its ATMs worldwide free. Service CU said members can save more than $800 annually in Visa ISA fees. To qualify, members must maintain a positive balance in their accounts in any amount and direct deposit their pay to the $1.9-billion CU. SCU will rebate Visa ISA fees on debit and credit cards combined up to $20 per month. Visa assesses a 1% ISA fee on the face value of any foreign transaction, including ATM withdrawals and purchases of goods and services worldwide.
EOC Seeks CU Charter
FRESNO, Calif.-The Fresno Economic Opportunities Commission is planning to open a community development CU that would serve eight counties from Bakersfield to Sacramento. The EOC hopes in the next 60 days to hear back from the Department of Financial Institutions and NCUA regarding its charter application for Community First CU.
Overtime Lawsuit Is Settled
TAMPA, Fla.-USF FCU has agreed to settle a class action suit regarding overtime by paying a longtime senior loan officer three years back overtime pay she claims she was illegally denied, plus attorney's fees. In a class action suit filed in federal court, Joyce Johnston, a senior loan officer at the credit union for 12 years, claimed the credit union violated the wage and hour provisions of the Fair Labor Standards Act by depriving her and other workers of overtime pay, and that violations were "widespread."
Johnston said in her suit she had no supervisory duties and no authority to hire, fire or make policy, and routinely works beyond her scheduled 40 hours workweek. Her suit claims USF FCU intentionally and repeatedly misclassified non-exempt employees as salaried workers so as to avoid paying them overtime.
Ahoy, Mateys, Campaign Launches
HAUPPAGUE, N.Y.-Island FCU here this week will launch a print and broadcast campaign using singing and dancing pirates who lament the exorbitant fees and poor service they receive from their banks. The goal of the promotion is to favorably compare its member service and lower fees to those of banks. A three-minute YouTube video has been released, as well.
Robber Leaves A Big Clue
MADISON, Wis.-A would-be robber reportedly made it easy for police to find him after he tried to rob a Summit CU branch last month by writing his holdup note on the back of his pay stub. Reo Covington, 36, allegedly left the credit union without any cash after handing a teller a note informing him that a robbery was occurring and that he was armed, according to police.e_SClBThe note, however, was written on the back of a pay stub from a Madison business, and the check had been made out to Covington and gave his Madison address, police said. Police contacted Covington's parole agent, who identified Covington from video recorded at Summit, particularly his distinctive hand movements and gestures. Fingerprints on the note also matched Covington.
MINNEAPOLIS-U.S. Bancorp is the latest financial company to settle patent infringement claims with DataTreasury, a small Texas company that holds several patents on Check 21 technology. Under the deal U.S. Bancorp will pay DataTreasury licensing fees for the key check technology in exchange for settling the case. The patents cover a system for the remote-image capture and centralized processing, storage and retrieval of documents and other paper transaction data. In March 2010 a jury awarded the firm $26.6 million in damages after finding that US Bancorp and Viewpointe-a technology firm partially by US Bancorp and other big banks-willfully infringed the company's two check-imaging patents. Later that year a federal judge doubled the damages to around $54 million.
OLYMPIA, Wash.-A 17-year-old McDonald's employee was sentenced to 60 days in jail for skimming credit union credit cards at the drive-thru window to steal more than $13,000 from cardholders. The teenager would swipe the drive thru customers' credit cards twice-once to pay for an order, and then a second time on his own skimming device. The scheme took place between Oct. 10 and Nov. 9, 2011.
Police were able to pinpoint the location of the crimes after multiple members of Washington State Employees CU began filing claims for fraudulent credit card use despite not having lost their cards. Investigators realized a common link among victims was their purchases at the McDonald's in question, and the fact the defendant was always working during the time of the crime.
FARMINGVILLE, N.Y.-Teachers FCU, which moved into a new headquarters in nearby Hauppauge in November, has sold its old offices here for $4.6 million. The sale comes as the $4-billion credit union was holding an open house last night for its new, 200,000-square-foot headquarters it acquired in 2010 for $40 million.
The credit union will occupy about 90,000 square feet on the first, fifth and sixth floors, including its 23rd branch, with tenants including Allstate occupying the second, third and fourth floors.
RALEIGH, N.C.-State Employees' CU, the nation's second-biggest credit union, reported another strong year for 2011, including 10% growth to $23.7 billion in assets and a 0.82 return-on-assets. The credit union giant reported deposits grew by $1.9 billion, or 10%, and loans by $481 million, or 4%. Both delinquencies and charge-offs ticked up slightly to 1.18% and 0.27%, respectively, from 0.93% and 0.24% in 2010. The growth and a lower expense-to-assets ratio (1.77%, down from 1.92%) helped it produce $196 million in net income, down slightly from the $229 million, or 1.06% ROA, reported for 2010.
ROCKFORD, Ill.-A former collections supervisor at Rock Valley FCU pleaded guilty to stealing $122,110 in loan payments he directed to his own accounts. Thomas Miles, 42, admitted he embezzled 163 loan checks members had made payable to the credit union between October 2007 and August 2010. Miles directed tellers at the credit union to cash the checks and issue money orders in the amounts of those checks. As the collections supervisor, Miles was responsible for ensuring these checks were applied to the appropriate loan accounts. Miles then deposited the money orders into his personal savings account at AMCORE Bank. Finally, Miles transferred the funds back to his personal checking account at Rock Valley FCU.
MIAMI-A former Miami police officer on was indicted on charges she stole $200,000 from a police charity she oversaw to finance her gambling at area casinos. Vernell Reynolds, 46, allegedly stole the funds from the accounts of the Miami Community Police Benevolent Association at United Police FCU. According to the indictment, Reynolds, who became president of the police charity in 2005, made unauthorized withdrawals from the MCPBA credit union accounts, made unauthorized personal purchases with MCPBA funds and transferred MCPBA funds from the MCPBA accounts to her personal credit union accounts.
