CHARLOTTE, N.C. – A new company formed by a group of banking veterans has acquired the Retail Payments platform from CheckFree it plans to use to offer lower-cost ACH transactions for online shopping. The company, called Moneta, said customers can register their checking or money market accounts at its website, and then buy goods and services by transferring money directly from these accounts to participating e-retailers. Moneta authenticates customers by means of four-digit PINs, and says it does not divulge any financial information to merchants. Merchants can save up to 50% on the interchange fees they pay for cards transactions, according to the company. CheckFree has been using RPS to offer ACH-based online payments to U.S. consumers for two years. CheckFree, which is about to be acquired by Fiserv, sold the payments system to Moneta on Sept. 21. CheckFree will continue to process the RPS transactions for Monetta.

LOS ANGELES – LA Financial CU has joined with the Los Angeles Clippers pro-basketball team to teach kids financial education. The Kids Read to Achieve for Financial Literacy program with the Clippers will encourage elementary and middle school students to learn about earning, saving and spending through reading by offering financial incentives to participants. At the conclusion of the program 10 students - five elementary and five middle school children - with the most ‘Read to Achieve’ dollars will become members of the Clippers Financial Bank Shot Board. They'll also receive a $200 scholarship, courtesy of LA Financial CU. Program incentives will include: a visit with a Clippers player to the elementary, middle school and high school with the most minutes read; Tickets to a basketball clinic/Clippers game; and an invitation to the Clippers Kids Community Block Party.

LOMPOC, Calif. – The CoastHills FCU Community Foundation's second annual fundraiser raised $25,000 for the foodbanks of Santa Barbara and San Luis Obispo counties, which will be used to support their respective backpack programs. The foodbank programs are targeted at alleviating hunger and poor nutrition for “food insecure” children who participate in school lunch programs throughout the Central Coast. The backpack program ensures that nutritious food, rather than hunger, becomes a regular part of a child's daily life.

MECHANICSBURG, Pa. – Members 1st FCU said it has implemented GuardianEdge’s new Removable Storage Encryption product. The product includes CD/DVD encryption, self-extracting files, 256 bit AES FIPS 140-2 compliance, plaintext file encryption and enhanced logging and reporting. The GuardianEdge Removable Storage Encryption product, a crucial component of the GuardianEdge Data Protection Platform, enables enterprises and government agencies to maximize the benefits of removable storage devices such as USB devices, iPods, and portable hard drives while mitigating the risk of losing sensitive, proprietary or legally protected data.

GARFIELD HEIGHTS, Ohio – Ohio Catholic FCU said yesterday it has implemented MRG Document Technologies document preparation, closing and disclosure services. The $125 million credit union submits requests and receives disclosure documents and compliance packages through MRG's Miracle Online browser-based system. Miracle Online provides automated data entry, document selection and electronic delivery of fully compliance-monitored loan documents for customers at any given time or place.

EL SEGUNDO, Calif. – Continental FCU said yesterday it has signed a multi-year contract to move its 15,000 Signature/PIN/ATM cards to DebitAdvantage program offered by PSCU Financial Services. As part of the conversion, the credit union eliminated its ATM-only access card and consolidated all services onto one plastic. Members can now use the debit card to access all of the credit union’s checking account products.

TUCSON, Ariz. – One-Hundred homes are getting a face-lift, thanks to credit union volunteers. Hundreds of volunteers from Arizona credit unions will be painting 20 homes of the elderly and disadvantaged through the month of October as part of ‘Together We Paint,’ a state-wide effort coordinated by the Arizona CU System. Volunteers will not only paint homes, but will also help repair structural, plumbing and electrical problems in an effort to improve the individual or family’s quality of life. People interested in volunteering should contact the Arizona league (system).

HARRISBURG, Pa.– The credit union wars with the bankers will be back before the state’s Supreme Court next month when the court will hear the bankers challenge of the two largest community charters ever granted in the Keystone State. In this case, the Pennsylvania Bankers Association and several banks are challenging the 2005 ruling by the Department of Banking granting Freedom CU and TruMark CU a charter encompassing more than three million people surrounding Philadelphia. The state High Court heard a portion of the case–the bankers challenge to the tax exemption for state chartered credit unions–last May, and are now challenging the legality of such broad community charters. The bankers have launched a similar legal challenge in federal court, asking that broad community charters granted by NCUA for Members 1st FCU, New Cumberland FCU and AmeriChoice FCU, be overturned for violating the Federal CU Act’s requirement that such communities must be ‘local’ in nature. Each of those charters cover more than 1.2 million people in seven southeast Pennsylvania communities.

WASHINGTON – Credit union lobbyists were working yesterday as a key vote loomed to convince members of the House Financial Services Committee that a bill to reign in abuses on overdraft protection could force thousands of credit unions to abandon the practice. NAFCU lobbyists were telling members of the committee as they were preparing to vote on the bill that counting fees in the annual percentage rate for the service could make it prohibitive for credit unions to offer because the resulting rate would exceed the 18% federal cap on credit union loans. Ironically, a move to pass new curbs on the service is being fueled in Congress by the credit union-backed Center for Responsible Lending, which has produced data showing that overdraft protection fees charged by credit unions and banks exceed the amount of money credit unions and banks lend to cover actual overdrafts. The Center, which is owned by Self-Help CU, is backing the bill expected to be voted today by the Financial Services Committee which would bring overdraft protection under the Truth In Savings Act, requiring that fees be computed as part of the annual percentage rate; that consumers be required to opt-in to overdraft protection programs; and that fees and rates be clearly disclosed.

MADISON, Wis. – Robert Curry, the president and CEO of CUNA Mutual Group from 1973 to 1988, died last week in Madison at the age of 84. The cause was a heart attack. Curry was named the company's fourth CEO in 1973, succeeding Charles Eikel, Jr. , and remained in the job until he retired in October 1988 and was succeeded by Richard. Heins. During Curry’s tenure at the helm, CUNA Mutual assets grew from $152 million to $1.35 billion, and the number of employees increased from about 400 employees to more than 3,000 worldwide, including 1,900 in Madison.

ENGLEWOOD, Colo. – Dynamic Card Solutions, the maker of CardWizard instant card issuing technology, said yesterday it is now marketing a separate version of the system to retailers, allowing them to co-brand Visa or MasterCards for their financial institution partners on-site. The technology will also help merchants seeking to enhance customer service programs. The new system makes it easy for retail stores to quickly set up individual kiosks or member service areas in store or franchise locations with CardWizard software and in-store embosser. As with traditional credit cards, customers who want to sign up for a store credit card must complete the application process. Once approved, the customer instantly receives an activated store credit card, which can be used for a store purchase within the same visit. Retailers have the option to attach store promotions, reward programs or first-time discounts to individual cards which increases the sales success of the card program.

AUSTIN, Texas – Teres Solutions, the provider of lending software, said it has signed several new credit unions customers for its SAIL lending solution. They include: 1st Liberty FCU, EECU, Kern Schools FCU, PrimeWay FCU, Red Canoe CU, Red River Employees FCU, Shell FCU, and Texas Dow Employees CU. The SAIL family of indirect and direct lending software products reduces the time it takes to review loan applications, request and review credit reports, enter data into core systems, make lending decisions and quickly respond to dealers and members.

LEXINGTON, Mass. – Imprivata, the maker of a converged identity and access management solution, said yesterday it has signed credit union giants Delta Community CU, NASA FCU, Northeast CU and Telhio CU, for its OneSign single computer sign-on. The OneSign platform includes OneSign Authentication Management, which increases network security by replacing network access passwords with strong authentication options; OneSign Single Sign-On, which quickly and effectively solves password management, security and user access issues; and OneSign Physical/Logical, which integrates building and network access systems to enable location-based authentication. The solution's access management capabilities enable organizations to record and control who accesses what and when, helping to comply with government regulations, including multi-factor authentication.

RALEIGH, N.C. – State Employees CU said it has contributed IBM printers to 25 North Carolina public school systems in distressed or underserved communities. The credit union chose these counties, also referred to as Tier 1, since their public schools tend to have less funds for equipment needs. The printers will replace aging equipment in schools and administrative offices.

LADERA, Calif. – Kinecta FCU said it is marking the opening of its newest branch here by giving members a $25 gas card when they have a financial review at the center. The branch, in a shopping center in Ladera Ranch, is the community’s first credit union. Kinecta FCU was formerly known as Hughes Aircraft Employees FCU.

CAMARILLO, Calif. – Pacific Oaks FCU said yesterday it has chosen Creative Brand Communications of Portland, Ore., to provide it with a full range of media services. Creative Brand is also the agency of record for Cascade Community CU in Roseburg, Ore. Pacific Oaks FCU was formerly known as Point Mugu FCU.

NEW YORK – Three speculators charged with a multi-million dollar scheme to profiting from credit union and mutual savings bank conversions agreed to repay more than $3.5 million in illegal profits and fines. The leader of the scheme, the third group charged in the last year with illegally profiting from mutual savings bank conversions, agreed to plead guilty to criminal fraud charges and to repay $2.85 million in ill-gotten profits. Prosecutors charged 62-year-old Mark Ristow, a real estate entrepreneur in Indianapolis, his cousin Andrew Crabb, 41, and Ristow’s sister-in-law Susan Gitlin, 49, with using phony addresses and other schemes to qualify for depositor status in dozens of mutual savings banks, and dozens of credit unions that were rumored to be converting to MSBs, in order to gain preferential access to lucrative initial public offerings. At one point, the group had more than $1 million in deposits spread across 150 MSBs. Those included: First Pactrust Bancorp (Pacific First FCU), which went public in August 2002; Synergy Financial Group (Synergy FCU) which went public in September 2002; Rainier Pacific Financial Group (Rainier Pacific CU) October 2003; and Citizens Community Bancorp (Citizens Community FCU), which issued stock twice in a so-called two-step conversion (2004 and 2006). Many of the same stocks were also targeted in a scheme disclosed this summer by which a former Wall Street executive and his life-long buddy earned more than $12 million in MSB offerings. Another group was convicted last year of illegally earning millions of dollars in the 2004 IPO of New Haven Savings Bank, a lucrative stock acquired by all three groups. Prosecutors allege Ristow put up the money for the scheme and had Crabb and Gitlin set up nominee accounts at the institutions in their own names to enable him to exceed the maximum allowable shares to be purchased in an IPO.

BOSTON – A federal court is expected tomorrow to approve a $120 million settlement between TJX Cos. and consumers over the biggest data breach ever, leaving its suit with banks and credit unions still unresolved. Under the proposed settlement, filed with the U.S. District Court for the Eastern District of Massachusetts, about 455,000 consumers who can show they were harmed by the breach of their financial records will be entitled to as many as two $30 dollar shopping vouchers at one of the company’s nine retail chains; three years of free credit monitoring; and an invitation to a one-day 15%-off sale at the stores. TJX indicated in financial filings the settlement could cost it $118 million. Lawyers for the consumers stand to earn $6.5 million from the settlement. TJX stores include TJ Maxx, Marshalls, HomeGoods, A.J. Wright, Winners and HomeSense, among others. Lawyers representing the banks in the breach suit said they hope the settlement with consumers indicates a readiness for the company to settle claims with financial institutions, which reacted to the massive data breach by cancelling and reissuing more than one a million cards.

WASHINGTON – A new venture headed by America Online founder Steve Case and backed by several banking giants unveiled a payments system yesterday they say will bridge the gap between credit/debit cards and Internet-based transactions. The group, called Revolution LLC, introduced two main products, a free person-to-person money exchange available to anyone over the Internet; and a secure debit card that has no name or account number on it and is self-loadable for up to $15,000. “Traditional, and even online, incumbents have been charging what adds up to billions of dollars of fees every year that ultimately comes out of consumers’ pockets,” said Case, the chairman of the company. “So we have built an innovative Web 2.0 company based on the latest technology to disrupt the decades-old system with the goal of offering the industry’s most accessible, easy-to-use and secure payment system that puts money back where it belongs, in consumers’ pockets.” The fledgling initiative, formerly called GratisCard Inc., recently raised $50 million in new venture capital and is backed by bank giants Citi, Morgan Stanley and Deutsche Bank. Other participants in the venture are; former Treasury Secretary Larry Summers, former MasterCard President Russell Hogg, former Charles Schwab CEO David Pottruck, former Fannie Mae CEO Franklin Raines, and former AOL CEO Ted Leonsis. Revolution’s MoneyExchange P2P offering, unveiled yesterday, is the first online payments platform that can be accessed over social networking or Instant Messaging networks. The RevolutionCard will charge a fraction of the current interchange fees, 0.5%, compared to 1.9%, and provide enhanced security for cardholders by not having an account number or name on the card, which will only be accessible through a PIN. One of the first online partners to offer Revolution MoneyExchange will be AOL’s AIM service, the largest instant messaging network in the country. Starting this fall, AOL users will be able to download MoneyExchange software and make payments free from their AIM Buddy List feature for free.

NEW YORK – Three more speculators were charged today with a sophisticated fraud scheme to gain access to initial public offerings of 23 mutual savings banks–including five converted credit union offerings–earning them more than $3 million. The scheme involved gaining illegal membership in numerous credit unions rumored to be considering conversion to banks, an important first step to gaining preferential access to lucrative IPOs. The case follows the May conviction of four others who earned $12 million from speculating in mutual savings bank conversions, including eight credit union converts, and last year’s conviction of nine others in the 2004 IPO of New Haven Savings Bank. In the latest case, the Securities and Exchange Commission charged Mark Ristow, a 62-year-old Indianapolis real estate investor, his cousin Andrew Crabb, 41, and his sister-in-law Susan Gitlin, 49, with a scheme that obtained depositor status in 150 mutual savings banks targeted to go public, earning the group big windfalls when many of them did. Those included: First Pactrust Bancorp (Pacific First FCU), which went public in August 2002; Synergy Financial Group (Synergy FCU) which went public in September 2002; Rainier Pacific Financial Group (Rainier Pacific CU) October 2003; and Citizens Community Bancorp (Citizens Community FCU), which issued stock twice in a so-called two-step conversion (2004 and 2006). The civil suit illustrates the great lengths the speculators went to establish membership in credit unions before they converted, in hopes of getting the maximum allowable shares afforded to members/depositors after an IPO. The group created a phony business it tried to qualify as a member of Affinity FCU, a New Jersey credit union that never converted. They established a fake post office box address to obtain membership in a Miami credit union, believed to be Eastern Financial Florida CU, which was rumored to be considering a conversion to bank, but never did.