GRAND RAPIDS, Mich. - What is it about credit unions and CUSOs that keeps them from forming a unified network? Why is the idea of overcoming behemoth financial services competitors so scary?

SIOUX CITY, Iowa - A former branch manager of Advantage One Credit Union has been indicted on four counts of bank fraud and two counts of money laundering in federal court, according to local news reports.

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TEMPE, Ariz. - Every year the amount of money American consumers spend on Christmas presents goes up, so Altier CU crafted a special short-term holiday loan to meet that need.

Throughout 2007, the Credit Union Journal, in conjunction with ENCORE Card Services, are profiling the credit unions of each U.S. state and D.C. Rather than appear in alphabetical order, the states are being featured in the order they became states. For info: visit www.encore-ecs.coop.

ORLANDO, Fla. - Insight Financial Credit Union has opened its virtual doors to a wider audience with a new partnership and new technology that allows people to open and fund new accounts without ever having to leave their computers.

WASHINGTON - The IRS has finally gotten around to addressing the Unrelated Business Income Tax (UBIT) as it applies to at least some state-chartered credit unions (SCUs), setting up a fight that could eventually pose a risk to federal charters, as well.

SALT LAKE CITY - The $177-million Beehive Credit Union has told members it is "considering a plan of conversion" to a federal mutual savings bank.

ST. LOUIS - The Missouri Credit Union Association said a new bill may help end seven years of field of membership lawsuits in the Show Me State-providing bankers and/or legislators do not make major alterations.

SOUTH BEND, Ind. - A Savers Club Program launched by Teachers Credit Union in the third quarter of 2006 to help educate members to become better consumers has attracted a whopping 4,577 members, so far. Of those, 4,391 have taken advantage of a complementary Savers Club Money Market product that helps put that education to good use, said Becky Summers, VP of Marketing and Research at TCU at the $1.7 billion asset TCU.

Throughout 2007, the Credit Union Journal, in conjunction with ENCORE Card Services, are profiling the credit unions of each U.S. state and D.C. Rather than appear in alphabetical order, the states are being featured in the order they became states. For info: visit www.encore-ecs.coop.

Most of us in the process of managing credit unions or providing systems, services and advice to credit unions would agree this is the most challenging operating environment we have seen in a long time.

(People) banded together to form a credit union, lend money to one another, and make money at the same time. Sounds like the ending of "It's a Wonderful Life," doesn't it? Except George Bailey doesn't work at the credit union anymore. -Recent Blog Posting

Glen Urban's book, "Don't Just Relate-Advocate! A Blueprint for Profit in the Era of Customer Power" (Wharton School Publishing), argues that today, consumers are all powerful in the business/consumer relationship. The Internet has given them access to information, choice and simplified direct transactions. In that environment, it's not enough to be responsive; the imperative is to be proactive.

SALT LAKE CITY – The Utah League of Credit Unions has adopted the following position on credit union to bank conversions:The Utah League of Credit Unions strongly believes that the member-owned, not-for-profit credit union charter is the charter of choice for providing the public with consumer-friendly financial products and services.We also strongly believe that the issue of credit union charter conversions should be approached from the point of view of the members of the credit union, since they are the owners of the institution. We understand that under current laws and regulations, credit unions face more restrictions on their operations than do mutual savings banks or commercial banks. In particular, credit unions lack access to alternate sources of capital, face higher net worth requirements, are more restricted in business lending, and can serve only a defined field of membership. We are dedicated to lessening or removing these restrictions on credit union operations through legislative or regulatory means.However, research has confirmed that even with these greater restrictions, the credit union charter provides by far the best deal for credit union members. The primary driver of this greater benefit is the not-for-profit cooperative structure upon which is based the credit union tax exemption. Credit unions are able to offer a far better economic return to their members than would be possible for a stock owned bank or a mutual thrift. In addition, substantial case law suggests that depositor ownership of a mutual thrift is merely a technicality, so that the fiduciary responsibility of a thrift board of directors is to serve the institution. As the US Treasury Department has pointed out, credit unions are owned by their members. Therefore, the fiduciary responsibility of a credit union’s board of directors is to the owners – the members. There are indeed real differences between a mutual thrift and a credit union. Credit union members benefit from the specifics of these differences.In other words, we cannot conceive of any circumstance under current law and regulation that members would be better off after a conversion to either form of bank charter. Although there may be operational advantages to the management of a credit union to have a bank charter, because the credit union exists for the benefit of the members, it is the responsibility of credit union leadership to preserve that benefit for the members. However, we fully appreciate that in the future the relative member benefit of a credit union compared to a bank charter could change. It is possible that the restrictions on credit unions’ capital, lending or fields of membership could become so onerous that the balance would tip in favor of a bank charter. Or, it is conceivable that the tax exemption could be lost without an immediate relaxation of legal/regulatory charter disadvantages. The mere possibility of such changes in the future requires the continued existence of the alternative of a charter conversion for credit unions. We believe that credit union members have the full right to decide the future of their credit union. We believe this right is properly exercised by a membership that is fully informed about all aspects of a potential conversion, including but not limited to the potential for the enrichment of credit union leadership, loss of meaningful member control of the organization, and the potential shift in interest rates and fees

ANCHORAGE, Alaska—Alaska USA FCU was robbed by a masked robber who was swinging a torch made out of a burning T-shirt and yard-long metal pole. According to local reports, the assailant allegedly threatened to set fire to people inside of the branch and burn down the building. After commanding everyone to get down on the floor and taking an undisclosed amount of money, the man fled on foot. No one was hurt, but when law enforcement arrived on the scene, they found a singed and still-smoldering shirt outside the facility. According to local reports, this was the state’s first bank robbery of the year, and all but one of the 17 bank robberies in 2006 were solved.

ST. PETERSBURG, Fla.–PSCU Financial Services, the nation’s largest CUSO, announced today it has combined business operations with Digital Dialogue, LLC, of Auburn Hills, Mich.The two organizations said they are joining forces to deliver the benefits of their technology, knowledge and experience to the credit union industry.Digital Dialogue is a 24-hour call center specializing in member services, new member acquisition, cross-selling and automated lending solutions for credit unions and will continue its operations in Michigan. PSCU Financial Services will expand its portfolio to include Digital Dialogue’s automated lending solutions, and Digital Dialogue will benefit from the extensive resources and 30 years of industry experience offered by PSCU Financial Services.“When two well-respected service providers join forces, it strengthens the credit union industry. We believe this collaboration will deliver better service and new solutions to credit unions,” said David J. Serlo, President of PSCU Financial Services.

ARLINGTON, Va.–NAFCU is predicting consumer installment credit to grow by 4% this year despite seeing a general slowdown in credit card expansion after the holiday shopping season brought 2006 to a close. In its recent “Flash Report” NAFCU said total consumer installment credit increased at an annual rate of 3.2% to $2.4 trillion in January, while non-revolving credit increased by 4.4% to $1.5 trillion and revolving credit increased to $879.4 billion from $878.6 billion in the previous month.Other factors cited by NAFCU: Total credit union consumer lending rose to $236.1 billion from $236.3 billion in December on a non-seasonally adjusted basis; nonrevolving credit union consumer lending expanded by $200 million to $207.6 billion and revolving credit contracted from $28.9 billion in December to $28.5 billion in January. Credit unions’ share of total consumer installment credit increased 2 basis points to 9.71 percent from the December figure and is higher than the average percentage share for 2006 of 9.69%.“NAFCU expects loan demand to decline from 7.9% in 2006 to 6% in 2007 due to a slowdown in the economy, particularly in light vehicle lending,” the trade group said, adding, “Despite the slowdown in 2006 in total consumer installment lending, credit unions still managed to outpace finance companies, the Federal Government and Sallie Mae, savings institutions, and non-financial businesses.”

ST. PAUL, Minn.–In an effort to combat the growing problem of credit card account compromises and to protect consumers from the risk of fraud, members of the Minnesota Legislature introduced the Plastic Card Security Act on March 7, according to the Minnesota CU Network. H.F. 1758/S.F. 1574 would take the current voluntary data security measures required by the credit card companies and make them mandatory under state law. “While there are rules in place prohibiting the storage of certain magnetic stripe data, we are concerned that these rules are not always enforced,” said Mark Cummins, CEO of the state league. “Our primary concern is to protect consumers from fraud.” This effort at the state level is similar to legislation U.S. Rep. Barney Frank (D-Mass.) has indicated he is interested in shepherding through the House Banking Committee (which Frank chairs).

CALABASAS, Calif.–Countrywide Financial Corp. has received approval to become a savings-and-loan holding company, placing all operations under the supervision of a single federal regulator. The nation’s largest mortgage lender said the move was a cost-cutting measure. According to federal savings-and-loan regulators, Countrywide will now convert its Alexandria, Va.-based bank subsidiary to a federal savings bank. Before, Countrywide reported to two separate government agencies: the Federal Reserve Board and the Office of the Comptroller of the Currency. The move was approved because of Countrywide’s promise to make mortgage loans and provide credit consistent with the “safe and sound operations” of a savings and loan, said regulators. On Dec. 5 the company reached an agreement with New York Attorney General (now Governor) Elliot Spitzer to put measures in place to prevent discriminatory pricing to minorities. As part of that deal, Countrywide will compensate minority borrowers who were improperly steered toward higher-cost loans and initiate a $3 million consumer education program.