Life Is A Highway...March 9, 2010

Kanjorski Feted In Pizza Capital Of The World

More than 70 people attended a fundraiser in Old Forge Monday evening for Congressman Paul Kanjorski (D-11) and enjoyed the famous pizza. Co-chairs for the event included Deb Peters, CEO, Incol Credit Union; John Kebles, retired CEO, Choice One Community FCU; and Jim McCormack, Association President/CEO.

The Credit Union Host Committee included: Bob Burton, VAntage Trust FCU; Tom Calaide, UFCW FCU; Jeff DeBree, Penn East FCU; John Hayduk, UFCW FCU; Janelle Kaczmarek, Tobyhanna Army Depot FCU; Bill Lavage, Service 1st FCU, and Association Director; Gayle Maisano, Corner Post FCU; Dominick Pannunzio, Esquire; Leonard Shimko, Cross Valley FCU; and Tom Smith, Choice One Community FCU.

Congressman Kanjorski updated the group on bills affecting credit unions in Washington. He stated that member business lending will probably be attached to the future jobs bill.

Two other bills of importance to credit unions – overdraft and interchange – will probably not move this year. Kanjorski also discussed the affect the Marcellus gas field will have on Pennsylvania’s future.

Credit union leaders attending the event vowed to work for Kanjorski’s campaign in the upcoming Primary election, as well as the November General election. 

Audio Session: Pending Escrow Rules

Date: March 24, 2010

Time: 11:00 a.m. – Noon

Join Association staff Rick Wargo and Laurie Kennedy, along with credit union peers Jeff Balestrini of Service 1st FCU, and Ron Celaschi of Clearview FCU, for a FREE conference call about the escrow rules for higher priced mortgage loans. 

This session is a follow-up to the Regulation Z compliance workshops held in December, 2009. We alerted you to these rules. We are curious to learn how credit unions are preparing and what solutions they might need.

Member credit unions may join the call by registering at registrations@pcua.coop. Once you register, we will send you the call coordinates. To accommodate as many members as possible, registration is limited to one phone line per credit union. You are welcome to gather around the speaker phone.

Who should participate? Loan personnel, operations personnel, and compliance staff.

What’s the objective? We want to share some compliance information, and most importantly, discuss operational solutions. Your thoughts, comments, and observations will be highly valuable. 

Welcome Tara Shirk 

Tara Shirk joined the Association staff last month as an Auditor for Audit Services. She is a recent graduate of Monmouth University in New Jersey, with a Bachelor of Science degree in Business Administration, with a concentration in Accounting. Tara is a former employee of the Lebanon Community Library and continues there in a volunteer capacity. She is currently training with Audit Services staff.

Robbery Bill Passes State House

SB 605, commonly known as the Robbery Bill, sponsored by Senator Mike Waugh (R-York), passed the State House unanimously by a vote of 193-0.

The bill would expand the definition of robbery of a financial institution by including verbal or written threats. The offense for a crime using these mechanisms would be moved from a misdemeanor with no mandatory sentencing to a felony.

Due to a notable increase in robberies, the Association has worked diligently with members of the General Assembly and thanks them for their leadership in passing this measure.

The Association encourages credit unions to send a letter of thanks to their respective State Representative for representing the needs of credit unions and other financial institutions on this issue.

Click here to find contact information for State Representatives.

Harrisburg Happenings

You can find this week’s edition of Harrisburg Happenings at http://www.pcua.coop/Affairs/Legislative-Publications.aspx. This publication highlights the latest happenings from the state capitol.

Low-Income Credit Unions Can Apply For 2% Stimulus Funds

The U.S. Department of Treasury’s new Community Development Capital Initiative (CDFI) enables Treasury to invest low-cost capital into certified CDFI credit unions. But time is of the essence; low-income credit unions must apply for funding by April 2, 2010, and uncertified low-income credit unions must apply for CDFI certification by April 16, 2010. 

Low-income credit unions may apply for up to 3.5% of total assets, but not more than 50% of capital and unimpaired surplus. CDFI capital investments carry an initial 2% interest rate. A Secondary Capital Plan is a required part of the application process. At a minimum, the plan must meet the requirements of NCUA’s Rules and Regulations 701.34 (b)(1). 

Applications and program materials are available via http://www.financialstability.gov/roadtostability/comdev.html. 

NCUA will post additional guidance on it Web site. Direct program inquiries to NCUA at LICUCapital@ncua.gov.

CU Student Choice Has What You’re Looking For

While you’re looking for new streams of revenue, and your members and their college-bound children are looking to fill their financial void with a fair-priced education loan, you can rest easy knowing the Credit Union Student Choice is here to help – your members, your credit union, and the credit union movement. Credit Union Student Choice is America’s foremost private student lending CUSO, designed by credit unions for credit unions. 

Credit Union Student Choice can work with your staff to hold member seminars on education finance, as well as visit local colleges and universities introducing them to the Credit Union Student Choice Private Student Lending Program offered by their local credit union. Rest assured you are making the right choice for your member, your credit union, and the credit union movement.

Contact your Association Account Executive to see the impact Credit Union Student Choice can have.

PA's 54-Day Tax Amnesty Program Starts April 26

Pennsylvania plans to begin a 54-day tax amnesty program on April 26. During the amnesty period, all penalties and half the interest will be waived for businesses and individuals who pay off delinquent taxes accrued through June 2009. The state Treasury expects the amnesty program to generate an additional $190 million for this fiscal year.

The program is patterned after last year’s hugely successful amnesty program in New Jersey, which raked in a record $725 million in six weeks.

Pennsylvania’s most recent amnesty program, in 1995-96, waived penalties but required full payment of taxes and interest. This year’s no-penalty, half-interest offer is designed to entice more delinquents to pay up.

Another provision provides an extra incentive for taxpayers previously unknown to state officials to come forward. Those taxpayers will not be held responsible for taxes due before July 2004. In exchange, they have to supply the department with the information it needs to tax them going forward.

Newsmakers

Newsmakers

West Branch Valley FCU participated again this year in the West Branch Home Builder’s Show, held at Lycoming College’s Recreation Center in Williamsport. A drawing was held at the booth for gift certificates to local area businesses for landscaping and mulch, as well as area restaurants. A total of 1,100 people entered the drawing. There was also a little competition between the employees who worked at the booth during the four-day show. The employee who had the most entries during their time period won a gift certificate to a local restaurant and all employees who participated will be allowed to wear jeans for a week as a “thank you” from President/CEO Bob Horner.

National News

National News

Compliance Challenge: Can CUs give overdraft incentives?

WASHINGTON (3/9/10)--In this month's Compliance Challenge, the Credit Union National Association (CUNA) addresses a question regarding overdraft protection policies.

In the Challenge, a credit union asks whether or not it can provide incentives such as gift cards to members that choose to opt in to its overdraft service for ATM and one-time debit card transactions.

According to CUNA, while credit unions may offer incentives to members that opt-in to the overdraft service for ATM and one-time debit card transactions, the same incentive would also need to be extended to members that do not opt in to the overdraft program.

Additionally, credit unions and other institutions may offer incentives to members or customers that enroll in overdraft services for check and ACH transactions, as these transactions are not covered by Regulation E overdraft rules.

Regulation E also requires credit unions and other financial institutions to apply the same account terms, conditions, and features to all members or customers, regardless of their opt-in choice, and this rule would also apply in cases of debit card abuse. In the example provided in the Compliance Challenge, CUNA said that a credit union can only suspend the debit card of a member that has not opted in to its overdraft program, but violates its stated overdraft account rules, if that rule also applies to members or customers that have opted in to the overdraft program.
Compliance Challenge

Cybercrooks step up targeted attacks by 50%

NEW YORK (3/9/10)--Cybercrooks or eCrime syndicates are expanding the base of the brands they exploit for online fraud far beyond major financial institutions and online merchants, said the Anti-Phishing Working Group (APWP) in its fourth quarter Phishing Activity Trends Report.

Now they're targeting the big phish hoping to hook key individuals in corporations and institutions.

The number of hijacked brands reached a record 356 in October, up nearly 4.4% from the previous record of 341 in August 2009, said APWG.

"No brand is safe from the threat of spoofing for the purposes of online fraud," said APWG Secretary General Peter Cassidy. "Once, only the largest banks were targeted. Now, every kind of enterprise from banks and credit unions of all sizes to charities, to, in a recent case, a hardware manufacturer, are now seeing their brands exploited in all manner of fraud scheme," he added (Sys-Con.com March 8) .

The number of unique phish reports declined nearly 29% from 40,261 in August. However, the decline masks a trend that is of "grave concern" to APWG members: a substantial increase in phishing focused on high-value targets--such as personnel with treasury authority.

The increase in spear-phishing and whale phishing, which target individuals inside of corporations or those who are of "high net worth," means phisher and malware attackers are trying to gain access to corporate online banking systems, corporate virtual private networks or VPNs, and other online resources, according to APWG.

While some research indicates the volume of phishing e-mails is decreasing, it is important to note that these attacks are targeting more varied industries with the intent on generating greater financial success, says Cyveillance, a cyber intelligence company. While banks and credit unions continue to be the top targets of phishers, governments and the technology and energy industries are now seeing growing number of attacks, said the company.

During the second half of 2009, Cyveillance found that first time phishing targets grew to 399 brands, nearly double the number during the first half of 2009 (Investment Weekly News March 13).

More than 36,000 confirmed, unique attacks were noted per month in the same period, said Cyveillance. That means phishing attacks continued to reel in their victims--despite advances made in consumer education and added protections implemented by security departments within the targeted organizations.
Anti-Phishing Work Group: Phishing Activity Trends Report

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