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iBloomberg HuffPoi Cheney on Bank Transfer Day topics

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WASHINGTON (11/3/11)--The movement toward credit unions, and credit union media presence, continues to grow as Saturday's Bank Transfer Day approaches, as Credit Union National Association (CUNA) President/CEO Bill Cheney highlighted the credit union difference, and the benefits that consumers would receive as credit union members, in a Bloomberg Radio interview and an editorial in the Huffington Post.

Listen to Bill Cheney

Bloomberg radio interview


Cheney on Bloomberg Radio's Taking Stock encouraged potential members to find a credit union to join on Nov. 5, but added that "it's not all about one day."

He reported that credit unions nationwide have seen an influx of new potential members coming through their doors, claiming disgust over bank fees as their main motivation. Cheney encouraged those fed up with their banks to find a credit union they can join, and look at the options. "You will get a better deal," Cheney said. Bank customers that are interested in moving to a credit union can see which credit unions they are eligible to join on CUNA's aSmarterchoice.org, Cheney added.

The CUNA CEO in his Huffington Post piece advised consumers that those who join a credit union can expect to save at least $70 through lower rates, higher returns on savings and lower or no fees over a year--just as current credit union members did in the 12 months between June '10 and June '11.

"And that's just on average; consumers who are loyal members of credit unions--utilizing them extensively--often receive financial benefits that are much greater than the average," Cheney wrote.

Perhaps the best news out of Bank Transfer Day for consumers, however, is the growing awareness regarding the benefits of credit union membership. CUNA executed a survey whose preliminary results indicated tens of thousands of consumers have shifted hundreds of millions of dollar to credit unions since Sept. 29, when Bank of America announced its $5 debit card fee.  (Final survey figures are now being tabulated.)

Although Bank of America and other megabanks have backed off from their plans to charge for debit card transactions, Cheney on Bloomberg Radio warned that "there are all sorts of other fees associated with bank accounts," and added that credit unions provide lower fees and better interest rates for their members. And, while some may consider staying with larger banks due to their broad reach, Cheney said the shared ATM and branch networks that are participated in by many credit unions provide credit union members with many of the same conveniences.

Use the resource links below to read the complete Huffington Post article.

Inside Washington (11/02/2011)

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  • WASHINGTON (11/3/11)--Sen. Richard Durbin (D-Ill.), the architect of debit interchange fee cap regulations that became effective last month, is proposing that the Federal Trade Commission report on the interchange cap's impact on small-issuer interchange fee income and whether merchants are discriminating against small issuers that are still able to charge more for debit card purchases. The original debit interchange fee cap legislation required the Federal Reserve to monitor these markets and release a report. The report is due in late 2012. Consumer Bankers Association President Richard Hunt told American Banker the Fed-to-FTC change may indicate that Durbin does not trust the Fed. Durbin's amendment to his legislation is tucked into a Financial Services General Government appropriations bill that will be added to an upcoming "minibus" spending bill …
  • WASHINGTON (11/3/11)--The Financial Crimes Enforcement Network (FinCEN) has scheduled a Nov. 9 webinar to cover the new regulatory requirements of its Prepaid Access Final Rule, its intent and purpose, and the regulatory expectations. The agency has also issued a Frequently Asked Questions document to address final rule issues …
  • WASHINGTON (11/3/11)--Filing procedures for some Bank Secrecy Act (BSA) forms will change on Dec. 1, the Financial Crimes Enforcement Network reminds. Specifically, FinCEN in a Wednesday release said filers must check the appropriate amendment or correction box and complete the form in its entirety when they correct or amend previously filed paper reports …
  • WASHINGTON (11/3/11)--A federally mandated foreclosure review process will likely cost banks hundreds of millions of dollars, and that tab, which would be paid to borrowers that may have erroneously lost their homes due to foreclosure errors, misrepresentations, or deficiencies, could grow (American Banker Nov. 2). Under recent federal enforcement actions, 14 large mortgage servicers were required to hire independent firms to examine their past mortgage processing activities, and mortgageholders that may have been wrongly foreclosed upon are being notified of their case status through the mail. Mortgage servicers have also created a website, www.independentforeclosurereview.com, a toll-free number, and an upcoming public information campaign. Independent consultants will evaluate whether borrowers suffered financial injury during the foreclosure process and determine appropriate remediation. Where a borrower suffered damages, the consent orders require remediation to be provided. Federal Housing Authority involvement in some loans, and the chance that mortgage servicers have destroyed or lost some loan modification documents, may complicate the investigation process ...
  • WASHINGTON (11/3/11)--The U.S. Small Business Administration (SBA) will join CUNA Strategic Services provider Agility Recovery Solutions to present a Nov. 15 webinar on business continuity plans. The webinar will feature comment from Agility CEO Bob Boyd. The SBA in a release said developing business continuity plans can help reduce liabilities, ensure employee and customer retention, "and may even reduce operational expenses." ...

Former CU employee banned from financial institution work

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ALEXANDRIA, Va. (11/3/11)--The National Credit Union Administration (NCUA) on Wednesday blocked former American Nickeloid Employees CU employee Angela Pena from participating in the affairs of any federally insured financial institution.

Pena is scheduled to serve a 60-day prison sentence and four years of supervised probation following her conviction on charges of financial institution fraud.

Violation of a prohibition order is a felony offense punishable by imprisonment and a fine of up to $1 million. Use the resource link to access all NCUA prohibition orders.

For the full NCUA release, use the resource link.

NEW iHuffPosti Cheney says Bank Transfer Day is just a start

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WASHINGTON (11/2/11 UPDATED 11 a.m. ET)—The movement toward credit unions over the last several weeks has been nothing less than phenomenal and the oncoming Bank Transfer Day—November 5—can be just the beginning for consumers who want to take steps toward financial freedom through credit union membership, Credit Union National Association (CUNA) President/CEO Bill Cheney underscores in a new Huffington Post article.

The strong response of consumers to the Bank Transfer Day goals of taking more control of your finances by moving out of big banks and into credit unions, which are financial cooperatives, is, for the credit union movement, "confirmation of our long-standing tenant that credit unions are 'people helping people,'" Cheney noted in the piece.

"But it doesn't have to end this Saturday. As Kristen Christian -- the founder of Bank Transfer Day – said (in her Oct. 27 Facebook posting): 'November 5th is merely a deadline goal."

Cheney advised consumers that those who join a credit union can expect to save at least $70 through lower rates, higher returns on savings and lower or no fees over a year—just as current credit union members did in the 12 months between June '10 and June '11.

"And that's just on average; consumers who are loyal members of credit unions -- utilizing them extensively -- often receive financial benefits that are much greater than the average," Cheney wrote.

Perhaps the best news out of Bank Transfer Day for consumers, however, is the growing awareness regarding the benefits of credit union membership. CUNA executed a quick study that found tens of thousands of consumers have shifted hundreds of millions of dollar to credit unions since Sept. 29, when Bank of America announced its $5 debit card fee. Use the resource link below to read Cheney's complete Huffington Post article.

Meanwhile, although Bank of American and other megabanks have backed off from their plans to charge for debit card transactions, CUNA—and news media—are warning consumers to stay alert to big bank fees.

As Cheney pointed out earlier this week, consumers should be watchful that banks will figure out ways to make up for the revenue it is forgoing by rescinding its debit card fee.

For instance, NBC Nightly News anchored by Brian Williams with BECU, Tukwila, Wash., said consumers should be on the lookout for "stealth fees," such as increased minimum balances to maintain "free" checking, a fee for using a teller, a fee for receiving a paper statement, and other manipulations.