Estimated 650K Have Joined
Credit Unions In Four Weeks
WASHINGTON-As Credit Union Journal was going to press, CUNA reported that an estimated 650,000 consumers had closed their bank accounts and opted for credit union membership over the prior four weeks leading up to Bank Transfer Day.
In a survey of 5,000 of its members CUNA estimates that at least 650,000 consumers across the nation have joined CUs since Sept. 29, the day Bank of America unveiled its now-rescinded $5 monthly debit card fee.
The survey results also show that more than four in every five CUs experiencing member growth since Sept. 29 attributed the growth to consumer reaction to new fees imposed by banks, or a combination of consumer reactions to the new bank fees plus the social media-inspired "Bank Transfer Day," Nov. 5. CUNA said the growth is particularly noticeable at CUs with $100 million or more in assets. The CUNA survey shows that more than 70% of these CUs reported they have seen growth in members and deposits since Sept. 29.
Technology CU To Be First
To Offer P2P At ATMs
SAN JOSE, Calif.-Technology CU announced it will be the first financial institution in the country to enable real-time, person-to-person payments from its ATMs to almost anyone in the world with a mobile phone or e-mail address, using a new payments service from NCR and PayPal. With the new technology, a member will enter the recipient's contact information after signing-in on the ATM, choose an amount to transfer, and the money will then be immediately credited to the recipient's PayPal account. If the receiver does not have a PayPal account, he or she will need to create a PayPal account in order to receive the funds. The $1.3 billion CU plans to roll out the service in early 2012.
Debit Propels MC Profits
PURCHASE, N.Y. - MasterCard last week reported its third quarter profits soared 38% to $717 million, as a growing number of cardholders continue to favor debit over credit cardtransactions. MasterCard, which ledthe charge against new caps on new debit fees, reported its U.S. credit card transactions grew by 7% in the third quarter, while its debit transactions rose by 24%. As a result, net income for the third quarter surged 27% to $1.8 billion.
Webinar On Compliance Issues
ARLINGTON, Va.-NAFCU will host a webcast offering an overview of the current regulatory compliance landscape, as well as expectations for 2012, during on Nov. 16 from 2-3:30 p.m. EST. NAFCU Director of Regulatory Compliance Steve Van Beek and Senior Regulatory Compliance Counsel Sarah Loats Zimmermann lead the discusson. For info: www.nafcu.org/webcasts.
Catalyst To Create Councils
PLANO, Texas-The newly formed Catalyst Corporate FCU said it is creating three member-engagement groups it is calling "Catalyst Councils" to will on service delivery, product development and enhancements, and "over-the-horizon" planning, respectively. Catalyst, which was formed by the merger between Georgia Corporate and Southwest Corporate, said it is also discussing creation of a listserv to keep council members informed.
$14M In Funds Forfeited
NEWARK, N.J. - A federal court last week agreed to the forfeiture of almost $14 million in five bank accounts owned by former U.S. Mortgage Corp. President Michael McGrath, closing the legal proceedings in the $140 million fraud that bankrupted the parent of CU National Mortgage. The newly forfeited assets bring to almost $20 million the amount raised from McGrath, who is serving a 14-year prison term for the massive fraud, in which he sold mortgages his company held for 28 credit unions to Fannie Mae without the credit unions' consent or knowledge and used the proceeds to keep his company afloat. The forfeited funds, combined with separate settlements with Fannie Mae and the credit unions' insurer, CUNA Mutual Group, are expected to amount to more than 90% of the missing funds, according to several sources.
McGrath, 47, is serving a 12-year-minimum sentence in a minimum security facility in Jessup, Ga..
Cellphones Collected For Soldiers
WISCONSIN RAPIDS, Wis. - Bull's Eye CU collected more than 500 cell phones to support the Cell Phones for Soldiers program. Proceeds from the recycled phones will be used to buy phone cards to be sent to military troops stationed away from home.
Turkey Drive Kicks Off
GROTON, Conn. - Charter Oak FCU is kicking off its 3rd Annual Turkey Drive. Charter Oak's Turkey Drive provides hundreds of turkeys and canned goods to local food banks each year. It donated 228 turkeys and more than 1,800 pounds of food in 2010.
This year, the drive will include the sale of paper turkeys, which can be purchased for $1 at any branch location through Nov. 30 in honor of a loved one or a favorite non-profit organization.
