RSS Feed
What is RSS?
News Now Archive
Filed on April 21, 2009, published the first business day after.
- Corporate CU share guarantee extended
- NCUA votes on UDAP changes, CLF positions
- New round of funds available from CDFI
- Inside Washington
- Study: Satisfaction with online services improves
- Colorado, Texas CUs announce merger
- CU rewards members by planting trees
- Oregon association testifies for financial education
- MnCUN elects five incumbents to board
- Invest in America approaching 100,000 vehicles sold
- North Island CU to close three branches
- West Virginia league elects new officers
- CU System briefs
- Market News
- News of the Competition
- Credit card debt skyrockets for college students
- CSS goes green for Earth Day
- PSCU Financial: Debit card transactions up in ‘08
- Webinar on performance evaluation offers ‘no surprises’
Corporate CU share guarantee extended
ALEXANDRIA, Va. (4/22/09)--The National Credit Union Administration (NCUA) voted Tuesday to provide an option through its Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP) that would allow quarterly extensions of the guarantee through December 2012.
Under the two-year rolling expiration date, the final guarantee would expire Dec. 31, 2014.
Twenty-three corporates are currently participating in the guarantee program. The NCUA also reopened program enrollment until May 15 to give the remaining four an opportunity to consider participation in the revised TCCUSGP. The agency said its actions Tuesday include revisions to TCCUSGP agreements with corporate credit unions to eliminate ambiguities, provide greater flexibility and improve operations.
"The action of the NCUA board sends a clear signal to natural person credit unions that their investments in corporate credit unions are not only safe, but also meet sound asset liability management principals by providing for orderly laddering of these investments," said NCUA Chairman Michael Fryzel in a statement.
He added, "It is important that they continue to provide the liquidity that is needed to maintain corporate stability. The board is committed to the safety and soundness of all credit unions and the protection of the deposits of the 90 million credit union members, and we will continue to take the necessary action to instill confidence in the system."
NCUA votes on UDAP changes, CLF positions
ALEXANDRIA, Va. (4/22/09)—The National Credit Union Administration (NCUA) proposed clarification of its unfair and deceptive acts or practices (UDAP) rule and approved some staffing changes at the Central Liquidity Facility (CLF), among other actions, at its open meeting Tuesday.
The clarification involves a rule issued jointly in December by the
 |
| NCUA Chairman Michael Fryzel prepares to open Tuesday's public meeting at which the three-member board considered five items including clarifications to an unfair and deceptive practice rule that goes into effect July 1. Seated behind the chairman is NCUA Deputy Executive Director Larry Fazio. (CUNA photo) |
The agencies intend the further guidance to facilitate compliance with the final UDAP rule. If adopted, it would specifically amend portions of the regulation that address deferred/waived interest credit card programs and the Servicemembers Civil Relief Act (SCRA).
The effective date of the rule is July 1, and the NCUA requested comment on the clarification proposal within 30 days of the date the plan is published in the Federal Register, which is likely to occur within two weeks.
Specifically, the proposals would clarify that:
- Key protections in the final rules continue to apply to balances on a consumer credit card account when the account is closed or acquired by a different institution, or when the balances are transferred to another account issued by the same institution;
- Institutions are banned from increasing the rate on a credit card balance because the account has been closed; and
- Institutions and retailers may continue to offer deferred interest and similar programs, but the programs are subject to all protections in the final rules.
Regarding its staffing decision for the CLF, the NCUA agreed to upgrade two existing jobs and add two new positions to the CLF force.
CLF President Owen Cole requested and was granted a ranking upgrade for the position of division director of the office of capital markets and planning. Also upgraded was the current position of National Capital Markets Specialist, which will now be National/Senior Capital Specialist.
The new positions are a senior level position with a special focus on CLF lending, and a technician's position.
Cole said the cost to the CLF, which is a self-funded entity, will be $178,000 and the cost to the NCUA would be $119,000.
New round of funds available from CDFI
WASHINGTON (4/22/09)—The U.S. Treasury Department Tuesday announced the availability of $63 million in new funds through its Community Development Financial Institutions (CDFI) Fund.
Treasury invited applications for financial assistance awards through its CDFI program and its Native American CDFI Assistance (NACA) program.
A total of $63 million in awards will be made; $55 million under the FY 2009 supplemental funding round of the CDFI Program and $8 million under the FY 2009 supplemental funding round of the NACA Program.
The additional funds were made available by an appropriation in the American Recovery and Reinvestment Act of 2009. The application deadline for the supplemental funding round of the FY 2009 CDFI Program and the FY 2009 NACA Program is 5:00 p.m. (ET) on May 27.
Credit unions interested in Community Development Financial Institution (CDFI) certification should note the Treasury Department kicked off a series of conference calls on the subject April 16 and will hold three more sessions in the coming months. The upcoming sessions are scheduled for:
- May 21, 2 p.m. EST;
- June 18, 2 p.m. EST; and
- July 16, 2 p.m. EST.
To access the conference calls, participants must call (202) 927-2255 and enter in the pin number 315646. No prior registration is necessary. The phone number and pin number are the same for all of the conference calls.
Use the resource link below for more CDFI information.
Inside Washington
- WASHINGTON (4/22/09)--Federal Reserve Board Chairman Ben Bernanke met with Timothy Geithner 17 times in January and February, according to central bank records (American Banker April 21). The meetings indicate that the Fed is working closely with the Treasury department. Records also show that Bernanke met with Paul Volcker, former Fed chairman and top economic adviser to President Barack Obama, and several lawmakers, including Senate Majority Leader Harry Reid (D-Nev.), House Speaker Nancy Pelosi (D-Calif.), House Financial Services Committee Chairman Barney Frank (D-Mass.) and Senate Banking Committee Chairman Christopher Dodd (D-Conn.) ...
- WASHINGTON (4/22/09)--Regulators are feeling pressured to increase enforcement orders against depository institutions, Deborah Dakin, deputy chief counsel for businesses transactions at the Office of Thrift Supervision (OTS) said in a speech at Pepperdine University Friday (American Banker April 21). Regulators used to think they could work with management without issuing the orders, but now are feeling as though they have to document everything. She clarified that the views she was expressing were her own, and not those of the OTS ...
Study: Satisfaction with online services improves
ANN ARBOR, Mich. (4/22/09)--Credit unions considering online financial services may want to take note of a recent study that measured satisfaction with online financial institutions--including credit unions, banks, credit card websites and investment websites.
Customer satisfaction improved during the past year, even as the financial sector of the economy deteriorated, according to a report from ForeSee Results and Forbes.com released Tuesday (BusinessWire April 21).
The 2009 Online Financial Services Study--which employs the methodology of the University of Michigan's American Customer Satisfaction Index (ACSI)--is the fifth report since the inaugural study in 2003, and shows that despite a weak economy, bank bailouts and tighter credit, financial institutions are using their websites to increase customer loyalty, account activity and positive word of mouth.
"It's not an easy environment for financial institutions to do business. Given all the problems that these companies are having, we might expect satisfaction to slip," said Larry Freed, president/CEO of ForeSee Results. "But the basic blocking and tackling that these companies are doing online is proving effective.
"They don't need to reinvent the wheel or their website strategy just because the economy is in crisis," he added. "Focusing on the right fundamentals makes a big difference to the customer experience over time. And it turns out that online satisfaction actually has huge implications for the whole industry."
The improvement for online satisfaction is good news for financial institutions because websites have a large impact on multi-channel operations and future financial success, the study said. Satisfied online customers are more profitable, more loyal, and more likely to engage in positive word of mouth. Highly satisfied customers are significantly more likely than less-satisfied customers to purchase additional services and open more accounts, increasing share of wallet.
Also, highly satisfied customers are more likely to increase engagement with the website for information or transactions, introducing cost savings by establishing a user preference for the most efficient service channel.
Online financial services companies still have room for improvement. The research identified site performance and functionality as areas where credit unions and banks could maximize return on investment. Functionality and portfolio management are priority areas for investment websites to improve satisfaction, while improving transaction processes and bill-payment features are top priorities for credit card websites.
Colorado, Texas CUs announce merger
SAN ANTONIO and AURORA, Colo. (4/22/09)--Officials of the San Antonio-based Security Service FCU (SSFCU) announced Monday that it merged with Aurora Catholic Federal CU (ACFCU). Approved by the National Credit Union Administration, the merger became effective March 31.
The ACFCU board of directors voted to join operations with SSFCU to provide improved and expanded products and services that would be more accessible to its members in its field of membership--parishioners of Catholic parishes, and schools and organizations that serve Catholic parishioners in Aurora.
The ACFCU board concluded that Security Service's products and services, service delivery channels, and locations would provide its members improved access to financial tools and growth opportunities. SSFCU's field of membership includes the Denver, Colorado Springs, Pueblo and Corpus Christi Catholic dioceses.
SSFCU has more than $5 billion in assets and more than 680,000 members. As a result of the merger, Security Service gained an additional $13.7 million in assets and more than 2,200 members.
Security Service also gained a service center with the addition of the former ACFCU location in Aurora, its sixth location in the Denver area. The credit union operates 13 other Colorado locations, including Denver, Pueblo, Colorado Springs and Fountain.
Security Service has operations in South Texas with 32 service centers in and around San Antonio and other South Texas areas, including Corpus Christi and the Rio Grande Valley.
CU rewards members by planting trees
DENVER (4/22/09)--Bellco CU has partnered with PayItGreen, which will reward members who use online banking by planting a tree in their honor.
"Bellco CU and its employees are committed to constantly identifying positive ways in which we can preserve the environment," said Laura Higgins, Bellco director of marketing.
Consumers who receive electronic bills and statements and who pay electronically can reduce their greenhouse gas emissions by 171 pounds annually, a savings equivalent of:
- Planting two tree seedlings and allowing them to grow for 10 years;
- Preserving 24 square feet of forestland; and
- Avoiding emissions by not driving 169 miles or consuming 8.8 gallons of gas.
Using electronic bill pay also can guard against identity theft. About 85% of identity theft cases are due to "offline" transactions such as lost checkbooks or stolen bills and statements, Bellco said.
Partnering with PayItGreen is just one effort the credit union has undertaken to become more environmentally friendly. Bellco has a comprehensive recycling program, renovated its Greenwood Village branch with motion senor light switches, owns two Priuses, and distributed free compact fluorescent bulbs to employees. It also has 36,000 members who use e-statements instead of paper, the credit union said.
Bellco, headquartered in Greenwood Village, Colo., has $2 billion in assets.
Oregon association testifies for financial education
BEAVERTON, Ore. (4/22/09)--Two bills related to financial literacy were heard simultaneously in the Oregon Capitol during the week of April 13. The Credit Union Association of Oregon (CUAO), along with Carlyn Roy, executive vice president and chief operating officer of OSU FCU, Corvallis, provided testimony in support of the legislation.
The bills--Senate Bill 441 and Senate Bill 501--were up for a hearing in the Oregon Senate Education Committee.
In March, CUAO and Roy provided testimony in support of SB 501 which would add "finances" to essential learning skills and requires school district to provide curriculum in finances. During the hearing, concerns were raised by the Department of Education and the school lobby.
State Sen. Rick Metsger (D-26) introduced an amendment to SB 441 which would basically eliminate the bill, and create a new one with new language. The new bill would define "finances" to mean "curriculum designed to achieve financial literacy and to give students personal financial management skills by teaching the basic principles involved with earning, spending, savings and investing money."
The amendments would require that of the three credits of social sciences needed to obtain an Oregon high school diploma, one-half credit would be in "finances." In essence, the amendments would add financial education requirements back into the high school diploma requirements.
"We support Senator Metsger's efforts to push Financial Education, and we were pleased to provide testimony during the hearing in support of his amendment to SB441," said Pamela Leavitt, CUAO senior vice president of governmental affairs and public relations.
MnCUN elects five incumbents to board
BLOOMINGTON, Minn. (4/22/09)--The Minnesota Credit Union Network (MnCUN) elected five incumbent representatives to its board of directors during its annual meeting April 17-18.
The representatives are:
- Chuck Albrecht, Mid-Minnesota FCU, Baxter;
- Jim Carrier, Buckbee-Mears Employees CU, St. Paul;
- Nick Meyer, Minnesota Valley FCU, Mankato;
- Patrick Pierce, City and County CU, St. Paul; and
- Harry Carter, TopLine FCU, Maple Grove.
The board also re-elected table officers for 2009:
- Chairman Carter;
- Vice Chairman Kyle Markland, Affinity Plus FCU, St. Paul; and
- Treasury/Secretary Pierce.
 |
| Kris Mecham, Credit Union National Association chairman, spoke to attendees of the Minnesota Credit Union Network's annual meeting April 17-18. He encouraged credit unions to act cooperatively to get through tough economic times. (Photo provided by the Minnesota Credit Union Network) |
The annual meeting also featured guest speakers Keith Morton, National Credit Union Administration Region IV director, and Kris Mecham, Credit Union National Association board chair.
Morton pledged to provide credit unions with open and direct information about the Corporate Stabilization Program. He urged credit unions to promote confidence in the system among, communities, volunteers and employees.
"By working together in collaboration, we can get through these tough times," Morton said. "However, we need to act cooperatively to get through this.
"Consumer confidence in credit unions has never been greater--seize that recognition," Mecham added.
Invest in America approaching 100,000 vehicles sold
LANSING, Mich. (4/22/09)--The Invest in America credit union member auto discount program is approaching 100,000 in vehicles sold, according to the Michigan Credit Union League.
The nearly 100,000 vehicles represent sales through the first three months of 2009. More than 1,300 credit unions nationwide have adopted the program since its inception last fall and have brought $2.1 billion in revenue to General Motors (GM) and Chrysler through the sale of 85,847 vehicles, the league said.
About 80% of vehicles sold through Invest in America have been financed through credit unions. This equates to about $1.27 billion in new auto loans, which has raised the credit union market share to 25%, up from 14% this time last year.
Credit unions hold about $85 billion in new car loans nationwide. They write about $23 billion in auto loans per year--and about $8.5 billion of that amount finances GM and Chrysler autos.
Chrysler is offering $500 rebates on select vehicles which also will be layered on top of its Employee Pricing. GM continues to offer supplier pricing combined with the new "GM Total Confidence" program; the most comprehensive customer protection plan in the industry.
GM has also extended its "Invest in America "contract through Dec. 31. CUcorp, the Michigan league's service corporation and the automakers are working toward extending the "Invest in America" program as a long-term relationship while offering these short-term, special promotions exclusively for credit union members.
"The partnership between America's credit unions and the domestic automakers has been impressive," said David Adams, CEO of CUcorp. "GM indicated how much the program means to its business by extending the partnership through the end of the year. Chrysler continues to say their credit union rebates are the best deal they offer."
"Credit union members are an increasingly important part of our customer base, and we're very pleased with the results we've seen with ‘Invest in America,'" added Jim Bunnell, GM executive director.
North Island CU to close three branches
SAN DIEGO (4/22/09)--North Island CU, San Diego, plans to close three branches next month as part of a plan to reduce expenses by 26%.
The branches scheduled to close are Vista, Carlsbad, and Clairemont Square. Clairemont will be combined with the Kearny Mesa branch, which is about four miles away. The lease for the Clairemont branch's space was set to expire next month, Kelli Beck, North Island vice president of marketing, told News Now.
Clairemont will close May 15, Carlsbad will close May 22 and Vista will close May 29.
Staff who work at the three locations will be laid off. Members who use those branches can bank online or visit the Mira Mesa or Scripps-Poway branches, Beck said.
North Island experienced positive net income January and February, and plans to have positive income again in April. The credit union also adds about 750 to 800 members per month, Beck said.
North Island has $1.5 billion in assets and 98,000 members.
West Virginia league elects new officers
CHARLESTON, W.Va. (4/22/09)--The West Virginia Credit Union League elected Tom Walker as chairman of its board of directors.
The elections were conducted following the league's 73rd annual meeting held Saturday in Charleston, W.Va.
Walker is a director of Universal FCU in Huntington. He is a 40-year veteran of the credit union movement serving as a volunteer director, and is a retired CUNA Mutual sales representative where he served for 28 years.
Other officers elected included:
- First Vice Chairman, Dave Van Middlesworth, Eastern Panhandle FCU, Martinsburg;
- Second Vice Chairman, Donna Gordon, Mercer Co. WV FCU, Bluefield;
- Treasurer, Doris Cunningham, Members Choice WV FCU, Charleston; and
- Secretary, Mike Tucker, West Virginia Central CU, Parkersburg.
Also at the meeting, Kenneth Truax, First Choice Community FCU, Weirton, received the league's highest annual recognition of a volunteer, the William Bryan Hawkins Award.
Receiving the Pacesetter Award was Charlene Gaither, Eastern Panhandle FCU. The award symbolizes excellence among paid credit union staff in West Virginia.
CU System briefs
- ALBUQUERQUE, N.M. (4/22/09)--The Credit Union Association of New Mexico (CUANM) announced that it has added two new employees: Carey Shorty and Devon Van Hecke. Shorty is the Association Services assistant and will provide clerical assistance and support to staff. Van Hecke joined the CUANM Youth Marketing Team as an operations specialist and staff writer ...
- EULESS, Texas (4/22/09)--A man who had one of his arms in a sling and walked with a limp robbed Omni American CU after slipping a note to the teller. He told the teller that he had a gun (Fort Worth Star-Telegram April 20). The man took an undisclosed amount of cash. Police are not sure if the man was disabled or was pretending to be injured, the newspaper said ...
- SAN ANTONIO (4/22/09)--San Antonio CU (SACU) reported that it saved more than 1,250 trees by shredding almost 148,000 pounds of paper during a four-hour shred day event held at nine of its branches. More than 2,400 people took advantage of the free service and donated more than $3,500 to benefit San Antonio's Dress for Success program. Dress for Success is an organization that helps women gain skills to re-enter the workforce. SACU has $2.7 billion in assets ...
Market News
MADISON, Wis. (4/22/09)
- The U.S. economy is poised to see a modest economic recovery this year, said Federal Reserve Vice Chairman Donald Kohn. In delivering the annual Hutchinson lecture at the University of Delaware Monday night, Kohn noted that consumer spending has steadied, and low mortgage rates and high housing affordability have helped the housing sector. In addition, he said business inventories are being worked down, and lower oil prices are boosting household income. "These developments may be an early indication that conditions are falling into place for real [gross domestic product] to decline at a slower rate in the second quarter and to stabilize later this year," said Kohn. Still, he noted that tight credit and weak exports due to the global economic slowdown could weaken the recovery. "My best guess is that we are in for a relatively gradual recovery," said Kohn (The Wall Street Journal Online and Associated Press via Yahoo! News April 21) ...
- The odds that the U.S. will still be in recession six months from now edged down to 45% in March--from 47.5% in February and the lowest since August 2008, according to Moody's Economy.com probability of recession. The nation's unemployment rate rose to 8.5% in March, the highest level since the early 1980s. About 25 million workers, 15% of the nation's workforce, are either unemployed or underemployed. The unemployment rate is expected to peak at about 10% next year. In some hopeful signs, real (inflation-adjusted) spending increased during the first quarter, and home sales apparently are nearing a bottom ...
- Banks and other financial institutions face aggregate losses of $4.1 trillion in the value of their holdings due to the global economic crisis, the International Monetary Fund (IMF) said Tuesday. The IMF estimates that financial institutions will have to write down $2.7 trillion in loans and securities originating in the U.S. from 2007 to 2010. That's up from a $2.2 trillion estimate in January. Banks probably will incur about two-thirds of the writedowns, while other institutions such as pension funds and insurance companies will shoulder the rest. The IMF estimates that banks in the U.S. face an additional $550 billion in writedowns this year and in 2010, after reporting $510 billion in writedowns by the end of 2008 (The New York Times April 21) ...
- The "vast majority" of U.S. banks have more capital than they need, said Treasury Secretary Timothy Geithner. "Indicators on interbank lending, corporate issuance and credit spreads generally suggest improvements in confidence in the stability of the system and some thawing in credit markets," Geithner told the committee overseeing the Troubled Asset Relief Program (TARP) yesterday. He said about $135 billion is still available for bank rescues, including $110 billion remaining under TARP, and an expected $25 billion in TARP repayments this year (Bloomberg.com April 21) ...
- General Motors could receive another $5 billion in federal loans, and Chrysler could obtain $500 million, according to a quarterly report filed Tuesday by the special inspector general on the auto industry. The exact amount of the loans hasn't yet been finalized, said a person familiar with the plans. GM already has received $13.4 billion in government loans, and Chrysler has received $4 billion. The Treasury Department has estimated that it will spend as much as $1.25 billion to guarantee the warranties for people purchasing GM and Chrysler vehicles during the automakers' restructuring period (Associated Press via The New York Times April 21) ...
- United Airlines announced Tuesday that it lost $382 million during the first quarter as recession-strapped consumers flew less. United cut flying by 11.3% during the first three months of the year. Still, passenger traffic plunged 13.2%. And United saw a 30% plunge in first-class and business-class travel during the period. United plans to cut mainline flying by 9% to 10% overall this year (Associated Press via The New York Times April 21) ...
News of the Competition
MADISON, Wis. (4/22/09)
- The value of the world's banking institutions have recovered slightly, according to a Boston Consulting Group report. The global banking industry's market capitalization dropped 10.5% during the first quarter, slowing from a 30% plunge during the fourth quarter. Global bank valuations rebounded by 15% in March. "From a market valuation [standpoint], banks may have hit bottom," said John Garabedian, head of the North American financial institutions practice at Boston Consulting. However, he noted that "banks are still in the middle of a crisis" of declining home prices, rising unemployment, and more loan writeoffs to come (American Banker April 21) ...
- Bank of America has changed its policy on short sales, making it easier for borrowers to sell their homes instead of losing them to foreclosure. BofA and its Countrywide Financial Corp. had required that 10% of a home's sale price go towards paying off home-equity-lines-of-credit (HELOCs) before a short sale was authorized. BofA changed its policy to accept 5% of the sale price when there is no equity available to holders of first and second liens, said company spokesman Terry Francisco. "We believed that the previous policies set an arbitrary amount that did not take into account the savings derived from proceeding with a short sale," said Francisco. Analysts say losses on foreclosures can be as much as 30% higher than on short sales. But the largest mortgage-loan lenders and servicers also are the biggest holders of second liens. The four biggest banks own 52% of residential revolving lines of credit, notes Laurie Goodman, senior managing director at Amherst Securities Group (Financial Planning.com April 21) ...
- Two of the nation's largest custodial banks, Bank of New York Mellon and Northern Trust Corp., reported weaker-than-expected earnings for the first quarter as declines in client assets dampened fees. Profit attributable to common shareholders plunged 57% at Bank of New York Mellon and 64% at Northern Trust. Another custodial bank, State Street Corp., reported better-than expected results. Its profit attributable to common shareholders fell just 16%. In morning trading, Bank of New York Mellon shares fell 14.7%, while Northern Trust shares were down 11.5%. State Street shares rose slightly. Bank of New York Mellon has received $3 billion of taxpayer money under the Troubled Asset Relief Program, while State Street has received $2 billion, and Northern Trust has obtained $1.5 billion (Reuters via Yahoo! News April 21) ...
- The end of the ATM deposit envelope is near, says NCR Corp. The largest ATM maker announced April 7 that more than 10,000 of its "no-envelope, intelligent deposit" ATMs are now in deployment. Consumers can deposit cash and checks directly into the SelfServ ATMs. The check image is captured and submitted electronically to an office for processing. A digital image of the check is displayed on the screen and printed on receipts. "The days of licking envelopes at the ATM are soon over," said Michael O'Laughlin, vice president and general manager of NCR Financial Services Solutions. ATMs accepting envelopes may be all but gone from mainstream banking by 2019, predicts Retail Banking Research Ltd. of London (Dayton Daily News and American Banker April 21) ...
Credit card debt skyrockets for college students
MCLEAN, Va. (4/22/09)--Credit card debt soared to record levels in 2008 for undergraduate students, now faced with a tough economy and rising college costs.
Young adults accumulated an average of $3,173 in credit card debt attending the nation's colleges and universities in 2008 (usatoday.com April 12). While students may use credit to live beyond their means, a recent study revealed that more than 90% of those carrying plastic charged direct education expenses such as tuition, school supplies, and textbooks (Sallie Mae April 2009).
No matter how credit card debt is accumulated, students are urged to take control of their finances and avoid spiraling further into debt:
- Commit to cash. Adding more debt is counterproductive to paying off your credit cards. Commit to stop using credit cards for purchases and use cash instead. If you can't afford to pay for the item with cash, perhaps you can't afford to buy it.
- Pay off most expensive debt first. Identify which credit card has the highest APR (annual percentage rate) and pay as much as possible above the minimum payment while maintaining regular payments on other credit card balances. This strategy will reduce the total amount of interest paid over time for all your accounts.
- Stay the course. Don't let up as balances and minimum payments begin to shrink. Continue paying as much as you can—more than the minimum payment—for the credit card with the highest APR. Do this and you erase the amount owed on that account faster.
- Knock out small debts. Having several small recurring debt payments can add up to a large amount. Pay off installment debts with low balances to free up money for credit card payments and get out of debt faster.
- Roll over payments. Once you've paid off the card with the highest APR, use the same amount to increase your payments on the card with the next highest APR. Continue this cycle until all of your credit cards have a zero balance.
For more information, read "Tough Times Series: Gas, Groceries on Credit a Slippery Slope" in Home & Family Finance Resource Center and "Improving Your FICO Score has Benefits" in MoneyMix: Launch Your Life.
CSS goes green for Earth Day
MADISON, Wis. (4/22/09)--CUNA Strategic Services Inc. (CSS) sold 61,000 of its environmentally friendly 2009 "Goinggreen" calendars and donated 10% of the proceeds to the Earth Day Network.
Goinggreen features monthly green living tips and was printed on recycled paper. The tips encourage members to make small changes in their lives that can yield measurable results for the planet.
CSS donated $2,800 to Earth Day Network, a non-profit group seeking to promote a healthy sustainable planet through education, politics, events, and consumer activism.
CSS offers the popular green calendar again in the recently released 2010 calendar catalog, and will continue its pledge to donate 10% of the net proceeds to Earth Day Network.
PSCU Financial: Debit card transactions up in ‘08
ST. PETERSBURG, Fla. (4/22/09)--PSCU Financial Services, a credit union service organization (CUSO), reported that it processed 644 million debit card transactions in 2008--a 22% increase compared with the previous year.
PSCU Financial processed 950 million credit, bill-payment and debit transactions--a 17.4% jump from 809 million in 2007. It also paid a cash dividend of $45.8 million to its owners, including $35 million from the sale of MasterCard and Visa stock (Cardline April 17).
The CUSO also elected four credit union executives to its board of directors during the 2009 Member Forum in Orlando, Fla.:
- Jane Watkins, president/CEO, Virginia CU, Richmond, Va.;
- Ariel Chun, president/CEO, University of Hawaii FCU, Honolulu;
- John Walling, president/CEO, Christian Community CU, San Dimas, Calif.; and
- Gene Foley, president/CEO, Harvard University Employees CU, Cambridge, Mass.
Foley replaces Gallagly, former CEO of Florida Central CU, who died March 31.
PSCU Financial provides credit, debit, ATM, prepaid, bill payment and contact center solutions for credit unions.
Webinar on performance evaluation offers ‘no surprises’
WESTLAKE, Ohio (4/22/09)--Cardwell will offer a free a webinar Thursday entitled, "No Surprises!" about credit unions' performance evaluation process.
The webinar is the third installment of Cardwell's "Connect with Leaders" webinar series. It begins at 1:30 p.m. EDT.
"No Surprises!" will provide information on innovations and best practices regarding a credit union's performance evaluation process. It also aims to help CEOs and managers build confidence in their staff as they solve problems and achieve goals.
The webinar also seeks to cover:
- How to handle the year-end discussion of overall performance;
- How to integrate performance software tools;
- How to link performance to compensation;
- What key lessons have been learned;
- What challenges remain; and
- How to make the performance evaluation process valuable to the employee, boss or organization.
Cardwell is a software development and management-consulting firm based in Cleveland, Ohio.
Copyright © 2010 - Credit Union National Association, Inc.
