Move Your Money - More CU Kudos

Last year was a record year for deposits at Service One as members moved more than $15M to their credit union. I'm delighted to announce that our assets topped $101,000,000 thereby reaching a historic milestone for our growth. More than 14,500 members do their financial transactions at SOCU. With proposed member-friendly products and plans for 2010, our future looks bright.

ABC features: Switch to CUs

NEW YORK (1/12/10)--The media kudos for credit unions continues this time with ABC's Diane Sawyer Friday noting on ABC's World News Tonight that many consumers are trading their financial institutions on Wall Street to the ones on Main Street.

The ABC news piece, "Switch to CU, Avoid Bank Fees," featured two consumers who switched from their big banks to smaller financial institutions. It also noted the "Move Your Money project," which was created by Arianna Huffington, owner of The Huffington Post. The project encourages consumers to take their money out of big banks and move it to smaller financial institutions such as credit unions and community banks.

"When big banks see real competition from the community banks and credit unions, they will change their behavior," Huffington told ABC's David Muir.

The project's Facebook group, "Move Your Money," has nearly 20,000 fans. The "Move Your Money" campaign on YouTube also has received more than 300,000 views (Newsline Express Jan. 8).

Credit Union National Association President/CEO Dan Mica also wrote a column for The Huffington Post, saying that credit unions are experiencing record membership growth and that "disenchantment" with banks may be part of the reason. His column generated many reader comments, many of them about the positive experiences consumers have had with credit unions.

In other news, The Washington Post Thursday recommended that homeowners looking to refinance a mortgage talk to several lenders--including a credit union.

A blog, the Red, White and Blue Press also recommended (Jan. 11) that consumers seek credit unions instead of banks to improve their finances.

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Service One Credit Union's "green" building became the final stop for community members who toured "green" facilities in Bowling Green on Saturday, October 3. Not only did tour members make the 10:00 news on WBKO and WKCT, but they found a front page article about the tour in their Sunday Daily News. The WKU Herald reporters also wrote an article. I appreciate the coverage that our local news media gave this Allied Alternative Energy Bowling GREEN Tour.

The comment has been made to me "Yes, Service One is serious about sustainability, but what will the new building be used for? Did we spend our members' money just to be green? The answer to that last one is "No," but, it has certainly drawn attention to what a business can do to position itself for future energy savings. It is our intention to save up to 90% on energy expenditures over the life of this building, thus saving our members money. Not only will we save costs through a 25% increase in insulation value from the living roof installation, this roof will not have to be replaced for forty years. Earth berms, insulated concrete walls, and insulated windows along with a geo-thermal energy system provide for a comfortable building for our employees.

The existing office structure, built in 1987, needs a great deal of maintenance and drains electricity. Work requirements have changed since '87 and new offices and a secure computer room are required. We chose to eliminate the small employee breakroom and restrooms in the existing building and design a more comfortable space for our employees in the new addition. The first floor features a larger kitchen with a recycling center and Energy-star rated appliances, dual-flush toilets and a shower in the restrooms, and a training area and a computer repair shop. The second story will be used for staff and board conferences and meetings. We included space for temporary offices during the renovation process on the main building as well as space for future growth requirements.

I hope that you will be able to attend our open house on Thursday, November 12, along with other "green" leaders in the state. The governor, Steve Beshear, Mayor Elaine Walker, and WKU President Gary Ransdall will be invited to join us in celebrating this grand opening event. If you cannot attend, we plan to provide scheduled tours several times a week so that our members can view this beautiful space designed for their credit union employees.

Please contact me if you have any questions or comments. I trust that you will be proud of the steps that your credit union has taken to be a good financial and environmental steward.

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Service One's Visa credit card is a low-interest platinum card with rewards. I highly recommend the convenience and straightforwardness of Service One's Platinum Visa, appreciate your use of your credit union's product, and agree with the recommendations made in the following article.

Nat'l Publications Say 'Get Credit Cards at CUs'
CU Times article (9/9/09)--The Los Angeles Times and USA Today mentioned credit unions as a good place for consumers to obtain credit cards.

Credit unions are a potential source for low-interest-rate credit cards because they made "fewer costly mistakes in the credit heyday and now have money to lend," said personal finance writer Kathy M. Kristof in the Sunday Los Angeles Times.

In an article about how college students can build a credit history amidst new federal legislation that restricts marketing of credit cards to those under the age of 21, USA Today financial columnist Sandra Block told readers Tuesday that "many credit unions offer secured credit cards with lower interest rates and fees."

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The credit union movement's trade association, CUNA, brings with it an array of smart, industrious, and committed professionals. Their work enhances credit unions ability to serve our membership. Happy Birthday, CUNA.

CUNA celebrates 75th anniversary today

Today the Credit Union National Association (CUNA) is blowing out 75 birthday candles. It was Aug. 10, 1934, when CUNA's Constitution and Bylaws were signed in Estes Park, Colorado, less than two months after the Federal Credit Union Act was signed and 25 years after the nation's first credit union was established.

Supporters of the U.S. credit union movement met at Estes Park, Colo., Aug. 8 -10, 1934 to form a national association--today's Credit Union National Association. Its constitution and bylaws were signed on Aug. 10.

"Seventy-five years ago, an extraordinary group of credit union pioneers held a 'meeting of the minds' in Estes Park, Colorado, about a national association that would enhance the movement throughout the land and help it become self-reliant," said CUNA Pres/CEO Dan Mica.

"Ultimately, 52 delegates from 21 states and the District of Columbia exchanged views in a 'constitutional convention' of sorts. Over four full days, the delegates debated (sometimes in heated terms), cooled off in the mountain air, and debated again," Mica said.

Mica noted that historians wrote years later: "Most of those present felt a deep sense of satisfaction at having at last developed the organizational framework for an association which hopefully would advance the credit union movement to new heights of usefulness and service.

"Today, it is an honor for all of us at CUNA to continue the work set out by those leaders three-quarters of a century ago. Our focus is completely on advancing this great movement to new heights--through leadership, advocacy and services," Mica said.

"Next month, when the CUNA Board meets in Estes Park as a tribute to our organization's founders, all will have 75 years of credit union progress on our minds--and a determination to ensure the next 75 years of progress and prosperity for credit unions," Mica concluded

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A new consumer protection law, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 (Credit CARD Act) has turned into a nightmare for credit unions. This legislation, originally supported by credit unions, was designed to curb abuses in the credit card industry; therefore, the legislation was not a problem for member-centric credit unions issuing credit cards. However, on July 22, 2009, the Federal Reserve Board issued its final interim rule and all open-end lines of credit were suddenly included. This rule now affects all revolving lines of credit (i.e. Comfort Cash), signature loans, home equity lines of credit, and other loan types that are permitted under open-ended lending.

Under the rule, credit unions and other creditors must mail or deliver a periodic statement to borrowers for open-end credit 21 days before the payment is due. Otherwise, the creditor may not treat payments as late for any purpose, including filing a credit report even if the payment is late.

So what is the problem? A majority of members have the convenience of payroll deduction which falls on various dates. Many credit unions, including Service One CU, let their members establish their own payment date and payment frequency. Over 3,000 SOCU members have the convenience of open-end lending arrangements and receive monthly or quarterly consolidated statements. The problem is that these statements do not meet the requirements of a 21-day notice, especially if a member has chosen a weekly, bi-weekly, or semi-annual payment frequency. The requirement for a 21-day notice is also not met if the member’s preferred date falls on the 1st through the 26th day.

In order to comply with the CARD Act and meet the compliance deadline of August 20, 2009, Service One Credit Union made a decision to move all due dates on open-ended loans to the 28th day of each month. All loan descriptors for statements will be changed in order for members to know whether their loan is open-ended or close-ended – a monumental task in itself.

We want the membership to understand these requirements, and to know that it is our intent to comply with federal regulations. We will continue to give members the option to utilize their current payment method through automatic payments. Legally, however, the official due date for open-ended loans will be the 28th day of each month.

Please let me know if you have any questions. We appreciate your understanding as we stretch our personnel to meet the compliance deadline.