CUNA Expects To Show $1M In Net Income
SAN FRANCISCO-CUNA said it expects to report net income of around $1 million for 2005. The net income is down from 2004, when the national trade association reported a net of $1.8 million. As a result, reserves are expected to decline to $17.5 million, from the current $17.8 million, Allan McMorris, treasurer of the CUNA Board, reported at Monday's annual general meeting. CUNA's CSSI service subsidiary is expected to account for about $400,000 of the net income.
BofA Expands Free Remittance Offer To LA
LOS ANGELES-Bank of America announced a free nationwide remittance service to allow Mexicans in the U.S. to send money home. The service, called SafeSend, eliminates transfer fees to anyone with a BofA checking account. BofA piloted a similar no-fee remittance program earlier this year in Chicago.
Judge Rules For VISA, MasterCard On Info
SAN FRANCISCO-A state judge ruled that Visa USA and MasterCard International don't have to send individual warnings to hundreds of thousands of cardholders whose personal information was stolen from a third-party processor earlier this year. The ruling represents a setback for consumers who are suing the two card giants over last year's security breach at CardSystems Solutions, during which data from an estimated 40 million consumers was stolen. As many as 264,000 accounts have been breached because of the situation. Both Visa and MasterCard argued they shouldn't have to notify cardholders because they don't have direct relationships with the cardholders, whose cards are issued by thousands of credit unions and banks. Both card associations insisted there is little financial risk to cardholders because of their "zero liability" policies that reverse all fraudulent charges. Meantime, CardSystems, which has been left on the bring of insolvency after Visa and MasterCard threatened to fire them for the breach, said it has agreed to sell its assets to CyberSource Corp., of Mountain View, Calif.
i3 Piloting New Ideas
MADISON, Wis.-Credit unions need to introduce new loan and savings products to remain competitive, according to the i3 Group, the Filene Research Institute's study group on the future.
Among the products suggested for credit union launch are a lifetime auto loan that acts as an open-ended line of credit, like a home equity loan; a 1031 property exchange that allows participants a tax deferral or deduction; a matrimonial account organized for wedding giving; a flex-one account that wraps all of a member/customer's accounts into one, similar to an adjustable rate home equity loan; youth savings accounts; and CU Moneyworks, a pyramid-type marketing campaign that allows third-parties to market a credit union's products and services. Several of these programs are being pilot-tested, with results to be released laster this year.
Skim-Scam At ATM
TAMPA, Fla.-Police are searching for two male suspects they said used sophisticated "skimming" devices to steal credit/debit card information at an ATM at USF CU last week. The two suspects left the scene after 43 minutes with $4,110 they obtained form cash withdrawals on 23 accounts, police said. The suspects were caught on surveillance videos at the credit union.