Senators Propose Bill On Exam Findings Appeals
WASHINGTON-Two senators last week introduced legislation that would let CUs and banks appeal examination findings to an outside arbiter, similar to the bill being debated in the House.
"Rather than provide clear rules of the road for an institution to make prudent loans to credit-worthy borrowers, banking agencies have made the lending climate worse by allowing the regulatory pendulum to swing too far," said Rep. Sen. Jerry Moran, one of the bill's co-sponsors.
The legislation, which would create a new outside ombudsman where credit unions and banks could lodge appeals, is opposed by NCUA and bank regulators, but supported by CUNA and NAFCU.
The measure has key bipartisan support in the House, but it appears to face a tougher path in the Senate. Banking Committee Chairman Tim Johnson recently asked the inspectors general at the banking agencies to study their exam practices, a process that could take several months.
First Basin Latest To
Settle ATM Disclosure Suit
ODESSA, Texas-An Arizona man will receive cash in exchange for settling a civil suit against First Basin CU over the absence of a fee disclosure outside its ATM, the 12th credit union or bank that has agreed to settle with the man who has filed numerous similar suits.
Lawyers for the credit union said they are barred under the terms of the agreement from disclosing how much they are paying Nicholas Pavle to settle charges of violation of the Electronic Funds Transfer Act. But a separate settlement Pavle entered into with Arizona Central CU paid the suit-happy Arizonan $1,000 and lawyers' fees.
Pavel, who has also settled suits with Complex Community CU and nine banks, is one of a number of people who have been filing series of suits under the EFT Act.
Randall Rouse, a Midland, Texas, attorney representing First Basin CU, told Credit Union Journal the credit union was successful, however, in limiting its liability by getting the judge in the case to deny it class action status, which would have made its financial exposure significantly greater. The settlement was not enough for the $170-million credit union to file for an insurance claim.
In the Arizona Central CU case the Phoenix credit union agreed to create a $46,425 settlement fund to settle claims that two of its ATMs in Tucson did not have the proper disclosure for non-member fees charged posted on the outside of the machine, as required under the EFTA. Claimants who could prove they used one of the ATMs between April 23, 2009, and April 23, 2010, are entitled to $100 for each transaction. Pavle was paid $1,000 for his services as class representative and his lawyers' fees, not to exceed $10,685.
Numerous other credit unions have opted to settle, rather than fight similar suits.
'Friends Don't Let Friends Bank'
RIVERSIDE, Calif.-Altura CU said a loyal member has won its $5,000 "Friends Don't Let Friends Bank" Visa Debit sweepstakes. Luisana Sanchez-Ramirez was entered into the sweepstakes every time she made a purchase with her Altura Visa debit card. To be eligible members had to have a Visa debit card and an Altura checking account.
Sanchez-Ramirez told Altura she used her debit card "all the time, but mostly at Starbucks." She plans to use the money to pay off bills, help her parents and throw a first birthday party for her daughter.
CU Supporter, Payne, Dies
NEWARK, N.J. - U.S. Rep. Donald Payne, a Democrat known for his work on human rights and a longtime supporter of credit unions, died Tuesday at age 77. Payne was a co-sponsor of the Credit Union Regulatory Improvements Act (CURIA) in the 100th congress and a consistent member business lending reform co-sponsor.
To honor his consistent support of credit unions, the New Jersey Credit Union League named Payne its 2008 "Legislator of the Year."
CUSO Pays 10% Dividend
LITTLETON, Mass. - Octant Business Services, LLC, a CUSO offering business-loan underwriting, servicing and portfolio administration, paid its nine CU owners a 10% dividend. It has expanded its client base to include 19 CUs, realized the highest net profit in its history, and named Tom White, president of Rockland FCU, as chairman. Octant is owned by Bridgewater CU, Digital FCU, EasCorp FCU, Granite State CU, Jeanne D'Arc CU, NMTW CU, Northeast CU, Rockland FCU and First Citizens' FCU.e_SClBCO-OP, Catalyst Renew Deal On Settlements
RANCHO CUCAMONGA, Calif.--CO-OP Financial Services has selected Catalyst Corporate FCU to continue providing payment settlements for CO-OP-client credit unions, a service previously provided by Western Bridge Corporate FCU.
The Plano, Texas-based Catalyst Corporate won the right to acquire the assets of Western Bridge in December in a successful bid to NCUA, which held the assets in receivership. Catalyst settlement services include check clearing, and ACH, EFT and ATM transactions.
The agreement expands the business partnership between CO-OP Financial Services and Catalyst, which also markets network access and other services from CO-OP.
Catalyst is the corporate created by the merger between Georgia Corporate CU and Southwest Corporate, which recently was awarded the assets of WesCorp.
is month.
With a goal of contributing to better collaboration among credit unions, Credit Union Journal has launched CUllaborationNation.com.
The site aggregates resources from across the CU community, as well as from the outside that offer different insights that help fulfill Credit Union Journal's mission of helping credit unions grow.
CUllaborationNation.com includes white papers, videos, best practices, and much more.
