Sept. 7-11, 2009

Featured News

Association issues call to action for MBL advocacy

The Credit Union Association of New York recently called upon credit unions to solicit member support for legislation lifting the member business lending (MBL) cap.

In an e-mail sent Sept. 2 to all affiliated credit unions, Association President/CEO William J. Mellin stated, “The House recently introduced legislation to provide MBL relief for credit unions. Credit unions across the nation are now counting on their New York counterparts to take the lead in working with Sen. Schumer.”

Noting that support from New York small businesses will be crucial, Mellin asked CEOs to encourage their member business owners to write letters to Sen. Schumer expressing their support for lifting the MBL cap.

During the Hike the Hill event this week in Washington, D.C., Association staff will be hand-delivering letters to Sen. Schumer’s office. However, credit unions are still encouraged to act from home.

Sample letters for member business owners and credit unions have been posted on the Association’s website. To download the letters and other resources, see the FYI section here.

For more information, contact Leona Haberstro, grassroots advocacy specialist, at leona.haberstro@cuany.org or (800) 342-9835, ext. 8128.

 

Upcoming webinar: Improving Your Communication Skills

The Credit Union Association of New York will host a webinar titled Improving Your Communication Skills Sept. 23 at 10 a.m. The webinar will address the importance of communicating effectively with members, management and peers.

By exploring the characteristics of a successful communicator, participants will be equipped to communicate more clearly, confidently and effectively.

For more information, click here.

 

Advocacy
ICU Week provides opportunity for advocacy

International Credit Union (ICU) Week is Oct. 12-16, with ICU Day designated as Oct. 15. During the festive week, credit unions across the world will promote the credit union difference with special initiatives and events. ICU Week provides an ideal opportunity for credit unions to reach out to members, non-members and legislators.

The Credit Union Association of New York’s governmental affairs team is available to assist credit unions with special advocacy efforts during ICU Week. Suggestions include requesting a legislative proclamation for display, or inviting elected officials to a local branch for a "Meet the Members" day. During the event, members can share stories of how their credit union has benefited them.

For more information about ICU Day, click here. For assistance with advocacy planning, contact Leona Haberstro, advocacy specialist, at (800) 342-9835, ext. 8128 or leona.haberstro@cuany.org.

 

Industry News
New report: Despite recession, debit growth continues

A recent mid-year review by First Annapolis Consulting provides insight on recent debit card trends.

 

First Annapolis noted the following:
 

Although debit has been impacted by the economic slowdown, both Visa and MasterCard have posted volume growth throughout the recession. In contrast, both companies have posted a decline in credit purchases.   Check and ATM volume continue to decline, and now there is evidence that consumers are shifting their payment methods from credit to debit.   Debit transaction totals have dropped due to factors like lower gas prices and an increase in generic brand shopping.

To view the mid-year review, click here. Free subscription to the Navigator newsletter is required.

 

Callahan & Associates lists 20 CUs to follow on Twitter

A Callahan & Associates web designer recently shared his list of 20 credit unions worth following on Twitter.

In the article, titled “Twenty to Follow on Twitter: Credit Union Mavens,” Matt Hand wrote, “In the spirit of sharing, we offer a list of twenty Twitter users that we follow with our [Twitter] account, CreditUnionsCom...They often impress us with the stories they are able to dig up on topics relevant to credit unions. Each of them puts forward a unique take on current events. Some are cheerleaders, others are critics, but they all are worth tuning-in.”

To view the list of 20 credit unions selected by Hand and his colleagues, click here.

Callahan & Associates has also posted free “CUtv Short” videos to guide credit unions through creating a presence on Twitter. To watch the videos, click here.

 

Compliance
CU compliance tips
By Joan Lannon, CUCE, Senior Compliance Specialist

Q. Is the credit union required to pay a check drawn on it if the person presenting the check has caused the credit union a loss? Is this a violation of the Uniform Commercial Code? Our credit union’s denial of services policy clearly states that we will not provide any services to a member who has caused us a loss, except the right to maintain a share account in which the member may make a deposit or withdrawal of funds in cash.

A. Section 4-402 of the Uniform Commercial Code (UCC) states that if a check is properly payable, and the credit union won't pay it, the credit union is considered to have wrongfully dishonored the check and may be liable to the maker for damages. If the credit union refuses to honor the check, the payee has no standing to bring a claim against the credit union. The only person who has a right to complain about the refusal to cash the check is the maker.

Liability only applies if the dishonor is actually wrongful. If the credit union has a provision in its membership and account agreement concerning the refusal to pay a check drawn off the member’s account, then the dishonor may not be wrongful depending on the facts and circumstances. Section 1-102 of the UCC allows the credit union to vary the provisions of UCC by agreement. It will be necessary to review and perhaps update the credit union’s membership and account agreement to address this issue.

When reviewing the agreement, look for language such as: “Checks presented for payment in person – We may refuse to accept any check or draft drawn on your account that is presented in person for payment. Such refusal shall not constitute wrongful dishonor and we will have no liability.”

Q. Does the Truth in Savings Act require a disclosure statement concerning the amount of insurance coverage per account? If the insurance amount is required, should the temporary limit of $250,000 be used or the original limit of $100,000?

A. Actually, it’s NCUA Rules & Regulations Part 740, Accuracy of Advertising and Notice of Insured Status, which requires insurance coverage disclosure, not Truth in Savings.

Currently, insured credit unions have the option to:

• continue to display the current official sign in Part 740, reflecting the $100,000 limit, without penalty;
   

• display any other version of the official sign distributed or approved by NCUA and appearing on NCUA’s official website through Dec. 31, 2013, that reflects the temporary increase to $250,000; or
   

• alter by hand or otherwise the current official sign to reflect the increase to $250,000, provided the altered sign is legible and otherwise complies with Part 740.

One example of how an insured credit union could alter the sign by hand is to place a sticker that reads “$250,000” over the portion of the current sign that reads “$100,000.” Additionally, insured credit unions that do not change or alter their official signs can inform members about the temporary increase in account insurance through additional signage.

Examples include posting a sign in the lobby or a notice on the website that, for the period Oct. 3, 2008, through Dec. 31, 2013, accounts are insured for $250,000 per account.

 

Member Services
Invest in America announces partnership with Allied Van Lines

The Invest in America program has announced a new partnership with Allied Van Lines and its agent Carey Moving and Storage.

As a result of this partnership, credit union members can now receive up to 60 percent off moving and storage services provided by the two companies.

"We hope that Allied's credit union member discounts will make things easier for the many families who may need to relocate in this tough economy," said Bill Lyon, vice president and general manager of Allied Van Lines.

Invest in America also offers discounts with GM, Chrysler, Ford, Thor Industries and Sprint.

To learn more about Invest in America, click here.

 

Vendor News
CUNA Mutual webinar: Cyber Liability Risks and Exposures

CUNA Mutual Group will host a webinar titled Cyber Liability Risks and Exposures Sept. 30 at 10 a.m. As part of the Credit Union Protection Webinar Series, this event is offered free of charge to all CUNA Mutual bond policyholders.

Click here to register. A Protection Resource Center user ID and password are required.

 

FoolProof touted by federal judge

U.S. Judge John C. Ninfo II, a federal bankruptcy judge from Rochester, N.Y., recently praised the credit union movement for utilizing the FoolProof program.

Based on the credit union principles of member focus and financial education, FoolProof is a web-driven and turnkey financial education tool.

Ninfo praised FoolProof as “one of the most effective in reaching vulnerable young people overextended on credit card debt,” adding that, “Perhaps now, through these kind of activities, we can get more of the media and public’s attention to the personal tragedies we see in our courts every day.”

Ninfo also singled out the work done by the Credit Union Association of New York and by The Summit FCU (Rochester). The Association recently partnered with FoolProof as a CU Resource.

For more information about FoolProof, click here.
 

 

 

Credit Union Association of New York