CEO Fired in Continuing Upheaval at P&SFCU
BROOKLYN, N.Y.-The ongoing turmoil at Polish & Slavic FCU, one of the largest immigrant-based credit unions in the country, resulted in the ouster of the $1 billion credit union's embattled CEO, credit union officials said.
The board, which has fended off recent recall attempts and been involved in constant internal intrigue since NCUA's takeover seven years ago, fired CEO Alicja Malecka last week.
The reason for the ouster was unclear, but Alex Storozynski, vice chairman, attributed it to the ongoing infighting. "It's politics, Strorzynski, who voted against the ouster, told the Credit Union Journal. My own personal opinion is Miss Malecka did a good job as (CEO)."
The CU, which serves this city's Polish emigree community, has been beset by political intrigue since NCUA put it into conservatorship in 1999, then installed its own board of directors.
Congress Plans Bill On Overdraft Fee Reform
WASHINGTON-New York Congresswoman Carolyn Maloney said she will renew efforts to tighten regulations over the growing practice of overdraft protection.
Maloney, named chair of the House Financial Service subcommittee on Financial Institutions, said she will introduce a bill that will require consumers opt-in to potentially costly overdraft protection plans, rather than be forced into them; that consumers are alerted when they are about to overdraw their accounts at ATMs; and that CU and banks provide comprehensive disclosures on their overdraft policies.
Maloney cited a new report by the Center for Responsible Lending showing banks are raking in increasing fees from overdraft policies, often without the knowledge or consent of consumers.
CUNA Helps Campaign Debt
WASHINGTON-CUNA spent much of its remaining financial resources from the last congressional elections helping newly elected lawmakers retire their campaign debts. CUNA's political action committee contributed almost $100,000 post-election to congressional newcomers, including $50,000 in the final four weeks of the year, according to the Federal Election Commission. Included were contributions to Democrat Nick Lampson, who returned to Congress by winning Tom DeLay's Texas House seat ($5,000); and Democrat Ciro Rodriguez, who also returned to Congress by winning a House seat in Texas ($5,000); as well as new senators Bob Corke (R-TN) $5,000; Claire McCaskil (D-MO) $2,500 and Amy Klobucher (D-MN) ($2,500); as well as new House members Charlie Wilson (D-OH) $2,500; Paul Hodes, (D-NH) $1,000; Kristen Gillibrand (D-NY) $1,000; Chris Murphy (D-CT) $1,000; Tim Walz (D-MN) $1,000 and Joe Donnelly (D-IN) $1,000.
Agency Clears New Credit Score
WASHINGTON-The U.S. Department of Justice has closed without action its antitrust inquiry into the new credit score introduced by Equifax, Experian and TransUnion.
The regulator began an informal probe after the three introduced the new system, called VantageScore, nine months ago, which will compete with Fair Isaac's FICO score to help credit unions and banks determine the suitability of borrowers.
Fair Isaac has filed a civil antitrust suit claiming the three credit bureaus are engaging in unfair and anti-competitive practices that harm the FICO score brand. The three bureaus currently sell and distribute FICO scores directly to lenders, which the lenders use to determine ability to repay all kinds of consumer loans. They also own the consumer data on which the scores are based.
Fair Isaac said this will allow the three bureaus to unfairly manipulate the credit score price, sales and distribution in order to promote their new VantageScore at the expense of Fair Isaac or other credit score products.
