Specter To Introduce Interchange Fee Legislation
The Association has learned from close sources that Senator Specter intends to introduce a bill that would limit interchange fees. He is taking this action despite an office visit with his staff earlier in the week during the CUNA GAC, where credit union leaders lobbied against any fee limits.
“The cost of fraud is being borne entirely by credit unions and other card issuers, not the retailers,” said Jim McCormack, Association President/CEO. “We hold all the risk for fraud and the merchants have none. Interchange provides compensation for that risk so that neither retailers nor consumers are financially liable for fraud.”
In addition, limits on interchange will increase the cost for all credit unions to issue cards, which would likely lead to increased costs to consumers and may force small card issuers out of the card market.
In making his point about consumer protection, McCormack rhetorically asked, “who would you trust to do the right thing – 7 Eleven or your local credit union?”
The Association urges you to e-mail Senator Specter and let him know how important the interchange fee issue is for your credit union. To send an e-mail, click here.
Freedom Credit Union Goin’ Mobile
Pennsylvania Credit Union Service Centers (PaCUSC) announced that Freedom Credit Union, Warminster, has agreed to offer their members mobile banking through CO-OP Mobile. This is the second Pennsylvania credit union to take advantage of CO-OP Mobile.
“The implementation of CO-OP Mobile will provide our members with greater access and convenience,” said Lee MacMinn, Freedom’s President/CEO, “and will appeal especially to teens and young adults. Mobile banking, coupled with our entire line of free youth resources, underscores Freedom’s commitment to reaching out to the Gen Y crowd, a large group of young, influential consumers.”
CO-OP Mobile’s new Multi-Mode Platform supports text banking, mobile Web browser, and downloadable applications to devices such as the iPhone. Members can view account balances, search account activity, transfer funds, and even find the nearest CO-OP Shared Branch or CO-OP Network ATM.
For more information on CO-OP Mobile Banking or CO-OP Shared Branching, contact PaCUSC State Coordinator Sandy Shenk at 800-932-0661, ext. 5267.
Audio Conference On Capital Initiative
NCUA Chairman Debbie Matz and National Federation of Community Development Credit Unions President/CEO Cliff Rosenthal announced a joint Audio Conference on March 4, designed to provide low-income credit unions with specifics about the U.S. Treasury’s new Community Development Capital Initiative (CDCI) to encourage increased lending in low-income communities.
The March 4 audio conference will begin at 2:00 p.m. (EST). No registration is required. Click here for call-in information. If you have any questions, send an e-mail to LICUCapital@ncua.gov or contact Pamela Williams at 703-518-6643.
FTC Amends Free Credit Reports Rule
Starting April 1, advertising for “free credit reports” will require new disclosures to help consumers avoid confusing “free” offers – which often require consumers to spend money on credit monitoring or other products or services – with the no-strings-attached credit reports available at www.AnnualCreditReport.com, or 877-322-8228.
The Federal Trade Commission’s Free Credit Reports Rule will require new prominent disclosures in advertisements for “free credit reports.” The Web site disclosure must include a clickable button to “Take me to the authorized source” and clickable links to AnnualCreditReport.com and FTC.GOV.
The Credit CARD Act of 2009 requires the Commission to issue a rule by February 22, 2010, to prevent deceptive marketing of “free credit reports.” The amended Rule is effective April 1, 2010, except for the wording of the disclosures for television and radio advertisements, which takes effect on September 1, 2010.
Each of the nationwide credit reporting companies is required to provide consumers with a free copy of their credit reports once every 12 months upon request. Consumers can learn more about their right to a free credit report under federal law at http://www.ftc.gov/freereports.
Financial Regulators Release Updated Retail Payment Systems Booklet
The Federal Financial Institutions Examination Council (FFIEC) has issued updated guidance for examiners, financial institutions, and technology service providers on the risks associated with retail payment systems. This Retail Payment Systems Booklet, which is part of the FFIEC Information Technology Examination Handbook series, is an update to the 2004 version that provided guidance on the risks and risk management practices applicable to financial institutions’ retail payment systems activities, including checks, electronic payments related to credit cards and debit cards, and the automated clearing house (ACH).
The revised booklet addresses changes in technology and provides guidance on the Check Clearing for the 21st Century Act of 2004. An electronic version of the Retail Payment Systems Booklet, as well as the entire FFIEC IT Examination Handbook Series, is available at www.ffiec.gov/guides.htm.
Frauds & Scams
Frauds & Scams
Counterfeit Card Fraud
Credit unions and banks in the York area have reported losses on counterfeit card fraud, which occurred in IL, LA, FL, and Ontario, Canada.
An investigation has found the common place of purchase was Cobblestones Restaurant in York, PA, during the timeframe of 07/15/09 thru 10/31/09.
If you have fraudulent card activity from IL, LA, FL, or Ontario, research your cardholders activity during this time and look for a Cobblestone transaction. Report these transactions to Visa by filing a CPP (Common Place of Purchase) report and also file the report with local police.
To be proactive, those financial institutions have blocked and reissued new cards to cardholders who had Cobblestone transactions during this period. Counterfeit cards were largely used to purchase gift cards.
Newsmakers
Newsmakers
American Heritage FCU, Philadelphia donated $6,539 to the CUAid earthquake relief fund, to support the 175 credit unions and more than 400,000 credit union members in Haiti.
Friday Tidbits
Friday Tidbits
Technology Manners
More than half of Chief Information Officers surveyed said they’ve noticed an increase during the past three years in poor tech manners among employees, according to a nationwide survey conducted by Robert Half Technology. More than 90% reported that employee etiquette with personal electronic devices, such as smart phones, has worsened or stayed the same. Only 6% reported manners improved.
The most common etiquette breaches are e-mailing or texting during meetings, setting cell phones to vibrate, and always wearing a Bluetooth or iPod earbud, the study found.
Etiquette offenses –
- Misguided multitasker: Thinks texting or e-mailing during a meeting or conversation demonstrates efficiency.
- E-mail addict: Relies on a constant stream of e-mails or instant messages to communicate, when a phone call or in-person conversation probably would be more efficient.
- Broadcaster: Talks loudly on a cell phone about anything, anywhere.
- Cyborg: A Bluetooth headset or earbud appears to be permanently attached.
- Distractor: Tries to be discreet by setting a cell phone to vibrate instead of ring, but the constant buzzing still distracts or vibrates the table.
National News
National News
Treasury meets with CUNA on CU issues
WASHINGTON (2/26/10)--High-level U.S. Treasury officials, including Secretary Timothy Geithner, met with the Credit Union National Association (CUNA) Thursday to discuss significant issues facing credit unions, including raising the statutory cap on credit union member business lending (MBL) and permitting access to secondary capital for credit unions.
The meeting also included Counselors to the Secretary Jeffrey Goldstein and Gene Sperling, and Assistant Treasury Secretary for Financial Institutions Michael Barr, and from CUNA, President/CEO Dan Mica and Chief Economist Bill Hampel.
Mica described for the assembled Treasury officials the public policy advantages of assisting the economic recovery by permitting credit unions to grant more loans to small businesses.
Mica also refuted charges others in the financial services industry have raised to Treasury and federal legislators about raising the MBL ceiling. Mica emphasized during the meeting, "I believe there really are no good public policy reasons not to lift the cap."
At an address this week at CUNA's Governmental Affairs Conference (GAC) this week, Treasury's Barr indicated that Treasury is committed to working with CUNA and credit unions to increase the flow of credit to communities.
Barr was addressing the Tuesday general session of the GAC, CUNA's premier legislative and governmental issues conference, which this year drew more than 4,000 credit union representatives to the nation's capital.
Matz to Treasury: We'd closely monitor increased MBLs
ALEXANDRIA, Va. (2/26/10)--National Credit Union Administration (NCUA) Chairman Debbie Matz earlier this week said that the NCUA would "promptly revise" its regulations if legislative changes that increase or eliminate the current member business lending (MBL) cap of 12.25% of a credit unions assets were written into law.
In a letter sent Wednesday to U.S. Treasury Secretary Timothy Geithner, Matz said that the NCUA would work to ensure that the "additional capacity in the credit union system would not result in unintended safety and soundness concerns."
The NCUA has "long exercised caution in monitoring MBLs" for safety and soundness, and regularly issues guidance "to ensure the credit union community and agency staff understand the risks associated with MBLs."
The NCUA is also increasing the amount of MBL training given to its staff in the near future, and is already strengthening "the regulatory qualifications that credit union officials must have to qualify as member business lenders," Matz added.
Member business lending legislation is currently awaiting action in both the House and the Senate. Each of the bills would allow credit unions to lend as much as 25% of their total assets to members that own small businesses and would raise the "de minimis" threshold related to these loans to $250,000.
The Credit Union National Administration has estimated that lifting the current restrictions on member business lending would result in over $10 billion in new loans within the first year of enactment and create as many as 108,000 new jobs, stimulating the economy at no cost to taxpayers.
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