Worth Noting

Register now

SharePlus To Convert To Mutual

PLANO, Texas-Members of Share Plus CU, the credit union founded to serve Frito-Lay employees, voted overwhelmingly last week to convert to a mutual savings bank, the 30th credit union to make the switch. The ballot, approved by 80% of voting members, must still be certified by NCUA. Share Plus CU was chartered in 1958 as Frito Employees CU and has expanded to serve PepsiCo and all of the other companies under the same owner, including KFC, Pizza Hut and Taco Bell Corp. The $175 million institution plans to begin business as Share Plus Federal Savings Bank on Oct. 1.

FCUs May Not Overdraw Account

ALEXANDRIA, Va.-Federal credit unions are prohibited from overdrawing a member's regular share or share draft account to credit the member's overdue loan payments, NCUA said in a new legal opinion letter that the FCU Act and the agency's own regulations do not allow a federal credit union to overdraw an account, unless there is a prior agreement between the member and the credit union.

RCU Warns Members Over Theft

SANTA ROSA, Calf.-Redwood CU has sent letters to 36,000 of its members saying their Social Security numbers and some account information may have been stolen when a computer was stolen from a third-party, the second of two local credit unions to come public with the theft. The computer with the credit union's data was stolen from PSB-The Marketing SuperSource, which does marketing for as many as 20 credit unions in the area. Last week, Schools Financial CU said it was one of the affected credit unions and was alerting its members to the potential use of their personal information.

NCUF Distributes $335K

MADISON, Wis.-National Credit Union Foundation has disbursed $335,940 in grants to state credit union foundations and leagues, bringing the amount disbursed for local outreach to more than $2.6 million since NCUF's Community Investment Fund began its mission.

Through these grant distributions, NCUF and states work together to improve the financial well-being of consumers by funding and delivering programs that improve access to services, increase asset accumulation and enhance the financial literacy levels of the low-income and "unbanked."

Funding for projects undertaken by the NCUF/SCUF partnership is derived in part from the Foundation's unique Community Investment Fund (CIF).

For info: www.ncuf.coop.

For reprint and licensing requests for this article, click here.