Payment Program For Those Who Owe Back Taxes
RALEIGH, N.C.-State Employees' CU is rolling out an Income Tax Debt Repayment loan that will charge 5% interest on loans to repay unresolved balances on state income taxes. The new loan program is being launched in partnership with the state's Department of Revenue and the Office of State Personnel. The state government has agreed to waive a penalty fee of up to 35% on the unpaid balance of state taxes for qualified borrowers.
While more than 185,000 North Carolina taxpayers have unresolved tax balances totaling nearly $800 million, the average unresolved obligation is approximately $4,600, with 105,000 taxpayers owing less than $2,000. Under this new loan program, a SECU member who owes $2,000 in back taxes and interest can expect savings of approximately $700 via the waiver of penalties and fees on the taxes. Terms of the credit union loan will, in most cases, allow for payments of $50 to $125 per month.
Following POS Pilot, PayPal
Now Expanding Into Cards
SAN JOSE, Calif.-PayPal Inc., which has been testing a point-of-sale payment system with Home Depot, has expanded that trial to offer consumers a card linked to their PayPal accounts. The card will be made available online. PayPal, a unit of eBay Inc., has been testing a point-of-sale payment system that works with or without a card. If consumers choose not to use a card, they can make PayPal payments at the point-of-sale using a phone number and PIN. PayPal expects to have its payment system in all Home Depot stores by March.
The new card will not function like a normal debit card. It will not have the user's name or account number printed on it. Instead, it will have encrypted data written to the magnetic stripe, used to provide access to funds via a link to PayPal. The card will have a rewards feature added by yearend.
CUNA Presses For Bill's Passage
WASHINGTON-CUNA last week wrote to key lawmakers in support of enacting H.R. 3461, the Financial Institution Examination Fairness and Reform Act. The trade group said the new law would help strengthen the safety and soundness of the financial system by increasing the consistency and fairness of examinations. The bill has been referred to the House Financial Institutions subcommittee on consumer credit, and has 66 co-sponsors.
The legislation, which would allow financial institutions to appeal examination reports from federal financial regulators, would provide further clarity to those regulators, and would give institutions access to decision-making information gathered in their exams and codify exam policy guidance for financial regulators.
Corporate Merger Moves Ahead
COLUMBUS, Ohio-Corporate One FCU, which announced plans in September, 2011 to combine with Florida-based Southeast Corporate FCU, said last week the two corporates have signed a definitive merger pact. The combination will create one of the biggest surviving corporates, serving about 1,000 credit unions and managing almost $8-billion in assets. A merger application will now be submitted to NCUA and, if approved, will be followed by a membership vote and capital subscription process.
The merger is one of seven corporate combinations in the works, including Pennsylvania's Mid-Atlantic Corporate FCU with Virginia Corporate FCU; Treasure State Corporate CU in Montana with Kansas Corporate CU; Alabama's Corporate America CU with Louisiana Corporate CU; Tennessee's Volunteer Corporate CU with West Virginia Corporate FCU, and of Southwest Corporate FCU with Georgia Corporate FCU.
Sallie Mae Sees Better Days
NEWARK, Del.-Student loan giant Sallie Mae, which has had a difficult few years, reported lower delinquencies and charge-offs and declining operating expenses helped fuel a 14% rise in fourth quarter earnings, to $511 million. Fourth quarter results helped create a 19% increase in fiscal year earnings to $633 million, up from $530 million for 2010.
Sallie Mae, formerly known as SLM Corp., reported it continues to be buffeted by the securitizations market, where it is by far the largest player for student loan securitizations. Fourth quarter 2011 and full-year 2011 results had a $302-million increase in gains and a $623-million increase in losses, respectively, in unrealized "mark-to-market" gains/losses on derivative contracts compared to year-ago periods.
Bethpage Numbers Are Strong
BETHPAGE, N.Y.-Bethpage FCU last reported that during 2011 it boosted loans by 7.5% and deposits by 13%, or $450 million. The growth helped increase the credit union's net income by 8% to $41 million, all marking the best year ever for the state's largest CU.
A record number of new checking accounts (23,000) were opened at Bethpage in 2011, a 29% increase compared to 2010, partly led by the nationwide Bank Transfer Day movement and banks' new checking account related fees. In addition, new membership grew by almost 27,000, or 19% more than the previous year's growth, for a total membership of 196,000.
Bethpage opened three new branch locations in 2011, including its newest bilingual branch in Patchogue, for a total number of 25 branches by year's end. Bethpage is in the midst of an aggressive branch expansion plan with four new Bethpage branches slated for 2012.
Member Gets Lucky Break
ROLLA, Mo.-One member of Rolla FCU is counting her luck after she inadvertently dropped an envelope containing $500 she had just withdrawn from her account near the RFCU's Missouri University of Science and Technology branch. The wayward cash envelope with the cash sticking out was spotted by a student at the university and the money was returned to its owner the same day.
University Police honored the finder, Michael Kuba, a graduate student in metallurgical engineering, for turning the money into the department secretary.
Foreclosed Homes Donated
MEMPHIS, Tenn.-Orion FCU has donated two foreclosed homes to the North Memphis Community Development Corp., a local non-profit dedicated to providing safe, affordable housing to low-income families. Orion CEO Daniel Weickenand said the $500-million credit union was in a position to help and gladly gave houses that likely would have stayed vacant, given the current housing market.
Donation To Assistance Program
TROY, N.Y.-CAP COM FCU presented a $30,000 check to the Seton Health Foundation, which will be used to fund a prescription drug assistance program for low-income families in Rensselaer County. The Rensselaer Cares Prescription Assistance Program helps patients that are uninsured or underinsured obtain their prescription medications free of charge. Since January of 2007, the program has helped more than 4,000 clients.
