NCUA To Consumer Groups: 'Our Hands Are Tied'
ALEXANDRIA, Va.-NCUA told consumer advocates concerned with credit unions offering high-priced payday loans its hands are tied because the credit union regulator has no legal authority over a payday lending CUSO.
"I am very troubled that this particular vendor is making high-priced loans using the names of credit unions," NCUA Chairman Debbie Matz said in a letter sent last week to the National Consumer Law Center and Center for Responsible Lending, which raised the issue in a May 16 letter to the agency. "NCUA is investigating credit union affiliation with Xtra Cash LLC and will take action against any credit union violating a law or regulation."
NCUA generally caps interest rates allowed on loans provided by federally chartered credit unions at 18%, but allows the rate to rise to as much as 28% for payday loans. NCUA has been working to obtain more legal authority over CUSOs but has been stymied by stiff opposition from the credit union industry.
CUNA Mutual Moves Benefits Biz To DIA
MADISON, Wis.-CUNA Mutual Group said it is transitioning its employee benefits book of business to Digital Insurance, the nation's leading employee benefits-only agency. Digital Benefit Advisors, the largest division of Digital Insurance, will service this business, providing resources, expertise and education to help credit unions prepare for the complexities of healthcare reform required by the Affordable Care Act.
Over the next several weeks, CUNA Mutual Group sales representatives will contact their 3,200 employee benefits credit union customers to discuss the benefits of working with Digital Insurance and ensure a smooth transition process. As part of this transaction, several CUNA Mutual Group employee benefits reps will join Digital Insurance.
$753M In Loans In One Month
VIENNA, Va.-Navy FCU reported last week it had originated $753 million in consumer loans last month, the best month for consumer lending in its 80-year history. A majority of Navy Federal's record $3.1 billion in loan originations so far in 2013, or $2.3 billion worth, are auto loans.
Plauda To Retire in 2014
NAPERVILLE, Ill.-The Illinois CU League said Dan Plauda, one of the longest-serving league presidents, will retire June 30, 2014 after 37 years of service to credit unions. Plauda joined the league in 1977 as general counsel and was named president and CEO in 1984. Before going to work for the league he was a partner in a Minneapolis law firm.
CDCUs Get $125K Grant
NEW YORK-The National Federation of Community Development CUs said it received $125,000 from Citibank's Citi Community Development to help train managers for low-income credit unions around the country. The Citi grant will fund six-month fellowship programs in up to 15 participating credit unions serving some of the most impoverished and financially underserved communities in the country. The intensive training program will include a two-week summer institute, online training, and ongoing support, Citi said. Citi is providing an additional $250,000 technology grant to the Federation.
80,000 Contact Congress
WASHINGTON-CUNA reported that as of last week more than 80,000 congressional contacts had been made as part of the trade group's "Don't Tax My Credit Union!" campaign. The contacts have been made by membes as part of a broad grassroots-mobilization initiative. CUNA said approximately 1,500 credit unions have participated in the effort to date.
Wegner Nomination Deadline Near
MADISON, Wis.-Credit unions are being reminded the deadline is June 28 to nominate individuals and organizations for the Herb Wegner Memorial Awards to be presented by the National Credit Union Foundation. Nominations are being sought for the Individual Achievement Award, Outstanding Organization/Program Award, and Lifetime Achievement Award.
For info: www.ncuf.coop.
