On Data Breaches, Evolution of the Movement and More
Published April 6, 2015 2:41 PM
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Updated June 1, 2021 1:21 PM
1 Min Read
Readers weigh in some of the hottest topics in the credit union movement right now.
Are you passionate about credit unions? Do you feel strongly about where the community is moving? Credit Union Journal wants to hear from you and now it's easier than ever to be heard.
At cujournal.com, you can do more than just read about the news you can have your say about it, too. In addition to being able to submit letters to the editor for publication, you can leave comments on specific articles and spark a discussion and/or debate on the issues that mean the most to you.
CU Journal has always sought to be a forum for discussion of the issues that are important to credit unions, to facilitate a dialogue on the biggest trends, challenges and opportunities to face our readers. Read on to see some of your colleague' latest comments.
<a href="http://www.cujournal.com/news/breaches-had-miniscule-impact-on-major-retailers-study-1024179-1.html">Breaches Had Miniscule Impact on Major Retailers: Study</a>
Go ask your local Home Depot onsite manager or a Target manager and they aren't likely to know that their employers didn't pay any of the affected FIs a dime so far. I did ask a Home Deport manager, and he believed that Home Depot made everyone whole. Looks like class action suits will be the long and tedious way the FIs will get reimbursed.
Posted by ELIZABETH D | Monday, March 30 2015 at 2:07PM ET
<a href="http://www.cujournal.com/news/group-collecting-comments-on-risk-based-lending-proposal-1024085-1.html">Group Collecting Comments on Risk-Based Lending Proposal</a>
God Bless CU*Answers, but NCUA has already stated they discount the input of trade groups, etc... I also went to NCUA's site, and 99% of the letters were "fill in the blank" / "Sign here" [form letters]. Unless Credit Unions put specific objections to specific parts of the proposed rule, prepare to bend over and take it!
While we are not over $100MM in assets, I have to wonder why after making [a certain percentage] of my loans secured by real estate, the following loans are somehow more risky. Do we have any proof that CUs are dumbstruck and incapable of making sound decisions after an asset threshold is reached? Either R/E loans are risky or not... the percentage made doesn't make them more so!
Posted by gdstockdale | Wednesday, March 11 2015 at 5:00PM ET
Image: iStock
<a href="http://www.cujournal.com/news/is-a-credit-union-by-any-other-name-the-same-1024134-1.html">Is a Credit Union by Any Other Name the Same?</a>
There is, however, at least one downside [to removing the words "credit union" from a CUs name] and that is giving the bank lobby even more fire power in their effort to ensure credit union net income is taxed. Paying in 35% of net income to the federal government and also some to the states would indeed change the credit union movement and the continued possibility of the member advantage of lower loan rates, higher savings rates and low or no fees, right?
Posted by Nick | Friday, March 20 2015 at 10:48AM ET
I worked with credit unions in Mongolia for the latter half of 2013. There, credit unions are not called that, but SCCs, savings and credit cooperatives. Once you get a bit more used to the name, it actually makes more sense than the term "credit union". (I still have to tell people here in the US that no, I don't work with credit bureaus and no, not labor unions...)
Brian Gately
Posted by brian g | Monday, March 23 2015 at 9:04AM ET
Image: iStock
<a href="http://www.cujournal.com/news/cheat-sheet-cfpbs-game-changing-plans-to-rein-in-payday-lenders-1024165-1.html">Cheat Sheet: CFPB's Game-Changing Plans to Rein in Payday Lenders</a>
The CFPB has to consider what will replace pay day lenders and the credit they are now providing if they introduce rules that significantly limit payday lending. As much as I agree that payday lending has many negative consequences, in most cases the poor do not have any good alternatives. Access to credit is the main reason why credit unions were founded. We should open credit unions' fields of membership so that anyone can join and encourage credit unions to provide credit in the areas now served by payday lenders.
Posted by henryw | Thursday, March 26 2015 at 10:35AM ET
The fate of payday lending at the hands of the left-wing consumer activists that actually run the CFPB will be illustrative of the eventual fate for overdraft services. These activist groups claim that overdraft programs are indistinguishable from payday loans. For that matter, the CFPB already has a proposed rule for prepaid cards and related accounts, where any overdraft services are treated as extensions of credit.
Apparently, the big-government CFPB bureaucrats know what is best for all consumers. It seems like the agency routinely uses the "protecting the most vulnerable" as the excuse for big government intervention and the imposition of innovation-crushing regulations.
Every time the in loco parentis CFPB acts purportedly in the low-income consumer's best interests it seems more like the agency is trampling on his or her individual liberties. The next thing the CFPB is likely to do is a full takeover of checking accounts.
It's only a matter of time before the CFPB will unilaterally tell financial services providers what services people can have, how much service they can have, what they will pay for the service, and when the financial service provider is permitted to stop providing the service.
Authored by Marvin Umholtz, President & CEO, Umholtz Strategic Planning & Consulting Services
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Image: iStock
<a href="http://www.cujournal.com/news/editors-note-is-the-credit-union-movement-losing-its-religion-1024208-1.html">Editor's Note: Is the Credit Union Movement Losing its Religion?</a>
Great article! Well done. The big worry of course is that if [credit unions] look, feel, act and think too much like a bank, Congress might no longer be able to see a definable distinction substantial enough to protect our income tax exemption, especially if we can't clearly and consistently prove that advantage is passed through only to the members of our credit union co-ops, right.
Posted by Nick | Friday, April 03 2015 at 4:14PM ET
