February 2, 2012
> Your comments and submissions are always welcomed. E-mail pr@vacul.org
> Visit the Virginia Credit Union League Homepage
> Previous Issue
Headline News
News About Credit Unions
Compliance/Regulatory Affairs
- Regulators Reissue Guidance on Junior Liens
- Troubled Debt Restructuring Proposed Rule Approved by NCUA
- Compliance: CompBlog Clears Up Credit Reporting Questions
Governmental Affairs News
- Small Biz Backs More MBLs, CUNA Reminds Lawmakers
- Regulators Fight Back Against Exam Appeals Bill
- CUNA Backs, NCUA Opposes Exam Fairness Bill
Financial Services/Marketplace News
- Consumer Spending Stalls as Americans Lift Savings
- Mortgage Rates Tumble to Record Low
- Obama Refi Plan Comes With Big Price Tag for Banks
- Banks to Use Social Media Data For Loans And Pricing
Education & Networking Opportunities
- Feb. 8 Webinar - Regulation E Legal Update: How to Properly Handle ATM & Debit Card Claims
- Feb. 9 Webinar - Required Compliance Series: Regulatory Compliance for the Board & Senior Management
News From Credit Unions
- Freedom First CU Featured in US News Post on CUs' Community Development Work
- The County Line is No Longer the Bottom Line
Chapter News
- 'Meet Your League Night' at the NoVa Chapter's Feb. 9 Meeting
- Tidewater Chapter Meets Feb. 16
- Roanoke Valley Chapter Meets Feb. 21
League News
- League Board Seeks Nominations for Kirsch, Farley Awards
- Nominating Committee Seeks Candidates for League Board Seats
- Get Recognized for Your Good Works - Complete Our Community Involvement Survey
Community Involvement News
- Sweets 4 Sweethearts Returns Feb. 14
- We Need Your Help: League Community Involvement Committee Seeks Financial Contributions for Annual Meeting Fundraiser
Marketing News
- Marketing & Business Development Council Launches Blog!
- Social Media Is a Tricky Business for a Tiny Bank
- CUES Seeks Golden Mirror Entries
News About The Competition
Headline News
Good News From Richmond ... and Thanks for Making The CU Day Events Such a Success
It's been a big week in Richmond, with a number of Chapters paying visits to their lawmakers as part of our CU Day events! Big wins, too, as a slew of foreclosure bills didn't make the cut in the House General Laws Housing subcommittee on Wednesday, which means it's unlikely we'll be faced with a major fight on foreclosure legislation (fingers crossed!).
Obviously, we're continuing to closely monitor all these bills, plus those in the Senate, because, hey, you never know what might happen in the legislative process. League and grassroots advocates had told legislators we weren’t reflexively opposing foreclosure bills, but we did want to ensure that any changes designed to protect consumers would not have the unintended consequence of hindering the ability of credit unions to best serve their members.
Good news as well today as the House General Laws Housing subcommittee tabled all but one of the homeowner association priority lien bills it considered. League President Rick Pillow reported the good news immediately following the subcommittee meeting, noting that the tabled bills are likely dead this session. The lone bill still in play was being sent off for further review, a good sign that it, too, is struggling to gain any real traction.
> Check out The Advocate blog for full details on our Chapter CU Day visits!
> Our lawmakers seemed to appreciate our visits with Jason Clarke (DuPont Community Credit Union) reporting that two of the legislators visited by the Central Virginia Chapter last week mentioned meetings with credit union representatives in their newsletters - Sen. Mark Obenshain and Del. Dickie Bell. State Sen. Bill Carrico posted on his Facebook page the photo of his credit union constituents visiting him Monday for the Southwestern Virginia Chapter’s General Assembly Day.
> And many thanks to all the credit union champions for making their way to Richmond during the past two weeks for our Credit Union Day events. Our visits do make a difference! We've been praised for the reasonable position we took on foreclosure legislation and the fact we could share the "real-world" impact these laws would have on credit unions.
> The NoVa Chapter hits Richmond on Feb. 8 to wrap up our CU Day events!!!
> League President Rick Pillow hits the airwaves tomorrow on WLNI-FM, for the radio station's annual remote broadcast from the General Assembly. The radio station covers the Lynchburg-Danville market, and portions of the Roanoke market.
Not only will Rick and League lobbyist Whitt Clement have the opportunity to inform listeners about credit unions and our legislative issues, given the League's title sponsorship of the broadcast, they'll also have the opportunity to meet and greet the slew of legislators scheduled to appear. It's one more opportunity to gain valuable face time with our lawmakers!
For those in-market, WLNI broadcasts on 105.9FM. Or, listen on the web at http://www.wlni.com/ (The Morning Line program). Rick and Whitt are scheduled between 8:10 a.m. and 8:40 a.m.
League Plans Town Hall Meetings; Register Now
Your League will host a series of Town Hall Meetings across the state in 2012 to inform credit unions about several new League initiatives, to review the League's strategic plan, to share the findings of our recent survey of CEOs, and to solicit your feedback and input on the direction of your League. Six meetings are scheduled. There is no charge to attend.
- Feb. 22, 2012 – 10 a.m.
Tidewater Chapter
Beach Municipal Federal Credit Union - February 24, 2012 – 10 a.m.
Lynchburg/Piedmont/Central Virginia Chapters
League Office - February 29, 2012 – 10 a.m.
Hampton Roads Chapter
BayPort Credit Union - March 2, 2012 – noon
Roanoke/Southwestern Virginia Chapters
Freedom First Federal Credit Union - March 9, 2012 – 10 a.m.
NoVa Chapter
Northwest Federal Credit Union - March 12, 2012 – 10 a.m.
Richmond/Southside Chapters
Virginia Credit Union
Have You Heard? Crash Virginia is Here!
A credit union event "Crash" movement is taking place across the country, with young credit union professionals wanting to learn more about the system and to participate in major conferences generally attended by executives, board members and management.
Thanks to a generous sponsorship by CUNA Mutual Group, up to 12 credit union professionals will be chosen to receive free registration to the Virginia Credit Union League's Annual Meeting & Innovation Expo, held April 26-27, in Norfolk.
Crashers not only will participate in scheduled agenda items, but will also meet with industry thought leaders each day, to share ideas about the future of credit unions and how credit unions can meet the needs of their generation.
Act now! The Crash is limited to 12 spots.
The deadline to apply is Friday, Feb. 17, so go online now to fill out your application! http://va.trust.coop/
Who can apply? Any Virginia credit union professional under 35 (or 35-ish) who wants to attend is welcome to apply.
Are there any costs to the participants? The registration fee is covered by the League. Crashers will need to provide their own transportation to Norfolk, pay for their hotel room ($109 per night), and purchase their dinner on Thursday evening.
For more information, contact Nicole Widell with the Virginia Credit Union League at nwidell@vacul.org or 800.768.3344, ext. 604.
[related: League Annual Meeting 2012 Set for April 25-27; Register Now!]
News About Credit Unions
Bank Transfer Day: Credit Unions Need to Up Technology Game
In a harsh appraisal of the industry’s future ability to gain much new business from Bank Transfer Day fallout, a California-based research firm warned Monday that credit unions stand to “go the way of the Oldsmobile.”
Credit unions may enjoy the public’s “love” but they sorely lack the full tech expertise to appeal to a younger clientele which many banks, particularly large ones, retain, declared James Van Dyke, founder of Javelin Strategy & Research.
In a report issued last week reviewing Bank Transfer Day account movement from large banks, Van Dyke told Credit Union Times that credit unions need to work much harder at upgrading technology-based products. [read more]
[related: Javelin says 5.6M people switched from banks]
Small Institutions Avoiding Big Interchange Losses — for Now
A lower cap on debit card interchange fees is hitting small and midsize banks more lightly than expected … so far. Losses at the nation's biggest banks are mounting from the cap, which Congress aimed directly at them.
While small and midsize institutions have braced themselves for substantial hits, a study by Javelin Strategy and Research of six such banks found that their annual losses tied to the cap could be 8% below predictions. All of the banks Javelin studied are larger than $10 billion, and are forced to accept a lower cap, also known as the Durbin Amendment to the Dodd-Frank Act. Industry observers warn that no financial institution can breathe easy.
There is still concern that the debit card market will soon adjust in a way that could give every credit union and bank a reality check. (American Banker Online, Feb. 1)
[related: Consumers Believe Durbin Amendment Helped, not Hurt Banks]
NCUA 'Disappointed' at Tentative Dismissal in RBS Suit
The National Credit Union Administration (NCUA) Tuesday expressed disappointment at another tentative ruling Monday by a federal judge in California who said he plans to dismiss NCUA's $629 million lawsuit against RBS Securities Inc. over the mortgage-backed securities (MBS) it sold to the now defunct Western Corporate Federal C redit Union. The suit was filed by NCUA in July. [read more]
NCUA Economic Updates: Free on YouTube
Recent domestic and global economic issues, and how the health of the credit union system is tied to employment issues, the housing market, and interest rate changes, are all covered in the National Credit Union Administration's (NCUA) first YouTube briefing by its Office of the Chief Economist (OCE).
The video is the first in a planned series. The videos are meant to inform credit unions and the public about economic developments affecting the credit union industry and the overall economy, the NCUA said. [read more]
CUs Should Alert Members to EI Tax Credit: NCUA
National Credit Union Administration (NCUA) Chairman Debbie Matz urged "the thousands of credit unions" with members that qualify for the Earned Income Tax Credit (EITC) to remind those members of the benefits that tax credit can provide.
The EITC, which is a federal income tax credit that is intended to aid low-income working families, allows those that qualify and claim the credit to "pay less federal tax, pay no tax, or even get a substantial tax refund," the NCUA said in a release. [read more]
[related: Through VITA program, CUs provide free tax help]
Compliance/Regulatory Affairs News
Regulators Reissue Guidance on Junior Liens
The banking regulators reissued guidance on Tuesday that requires institutions to monitor all credit quality indicators for mortgage borrowers, specifically citing junior liens as a potential problem.
“Amidst continued uncertainty in the economy and the housing market, federally regulated financial institutions are reminded to monitor all credit quality indicators relevant to credit portfolios, including junior liens,” according to the six-page guidance released by the Federal Reserve Board. The Fed, along with the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the National Credit Union Administration reissued the guidance on allowances for loan and leases losses estimation practices related to loans and lines of credit secured by junior liens on one- to four-family residential properties.
Junior liens include second mortgages and home equity lines of credit obtained by homeowners. [read more]
Troubled Debt Restructuring Proposed Rule Approved by NCUA
Federally insured credit unions will have to have written loan workout policies and calculate and report troubled debt restructuring loan delinquency based on restructured contract terms. These were among the provisions of a proposed rule the NCUA Board approved and sent out for comment last Thursday.
The TDR rule also requires federally insured credit unions to stop accruing interest on loans at least 90 days or more past due. There is a 30-day comment period. (Credit Union Times, Jan. 26)
[read more]
Compliance: CompBlog Clears Up Credit Reporting Questions
Some credit unions remain confused about which Fair Credit Reporting Act (FCRA) powers have been transferred to the Consumer Financial Protection Bureau (CFPB), and the Credit Union National Association's (CUNA) CompBlog recently explained what has – and what hasn't – been shifted to the new agency. [read more]
Governmental Affairs News
Small Biz Backs More MBLs, CUNA Reminds Lawmakers
Credit unions stood with their small business-owning members during the recent financial crisis, continuing to lend when others pulled back, and now approximately 525 are approaching the 12.25%-of-assets member business lending cap (MBL), the Credit Union National Association (CUNA) said in a letter sent to the top members of the House Small Business Committee Wednesday.
The letter to Chairman Sam Graves (R-Mo.) and ranking member Nydia Velazquez (D-N.Y. ) was sent in conjunction with the committee's hearing titled, "The Path to Job Creation: The State of American Small Businesses." In it, CUNA President/CEO Bill Cheney urged the U.S. Congress to enact pending legislation that would raise the MBL cap to 27.5% of total assets. [read more]
Regulators Fight Back Against Exam Appeals Bill
Bank regulators raised significant concerns Wednesday with a House bill that would set up an independent appeals process for banks that receive a low exam rating and provide new guidelines for agencies regarding the treatment of commercial loans. The agencies, which have until now spoken out only privately about the bill, are now officially pitted against the banking trade groups and a bipartisan group of lawmakers.
"The bill would, in certain instances, tie the hands of regulators when they believe a bank's risk profile requires more capital," Jennifer Kelly, the Office of the Comptroller of the Currency's senior deputy comptroller for midsize and community bank supervision, said in testimony to the House subcommittee on financial institutions and consumer credit.
The bill, which is being sponsored by Republican Rep. Shelley Moore Capito and Democratic Rep. Carolyn Maloney, has two main parts. It would establish a series of examination standards that would give banks more time to try to deal with commercial loans that are presenting problems.
The measure would also set up a new ombudsman's office at the Federal Financial Institutions Examination Council, the interagency group that establishes uniform standards for bank exams. This process would be in addition to an existing appeals process, under which banks can appeal findings to an ombudsman within the agency that conducted the exam. (American Banker Online, Feb. 2)
CUNA Backs, NCUA Opposes Exam Fairness Bill
The Financial Institution Examination Fairness and Reform Act (H.R. 3461) is "a firm step in the right direction toward ensuring the federal financial institution regulatory agencies conduct fair exams, which are consistent with the law and regulation and ensure safety and soundness," West Virginia Credit Union League President/CEO Ken Watts said during a Wednesday House hearing.
He was testifying on behalf of the Credit Union National Association (CUNA). The hearing featured two witness panels: One was comprised of Watts and other financial industry representatives who supported examinations reforms, and the other was comprised of federal financial institutions regulators, such as National Credit Union Administration (NCUA) Executive Director David Marquis, who did not support the bill as written. [read more]
Financial Services/Marketplace News
Consumer Spending Stalls as Americans Lift Savings
Consumer spending stalled in December as Americans took advantage of a jump in incomes to restore depleted savings, indicating households remain focused on repairing finances. Purchases were little changed after rising 0.1 percent the prior month, Commerce Department figures showed. The median estimate of 77 economists surveyed by Bloomberg News called for a 0.1 percent increase in sales. Incomes climbed by the most in almost a year, pushing the savings rate to a four-month high. [read more]
Mortgage Rates Tumble to Record Low
The average rate on the 30-year fixed mortgage dropped to the lowest since records have been kept, creating a tempting target for people to refinance their homes. Freddie Mac said Thursday the average rate on the 30-year fixed mortgage hit 3.87 percent, down from 3.98 percent the prior week.
That's below the previous record of 3.88 hit two weeks ago. The average on the 15-year fixed mortgage fell to 3.14 percent, also a record low. Records for mortgage rates date back to the 1950s. [read more]
[related: More Good Econ Reports Boosts Stocks]
[related: Mortgage Rates Fall to Another Record Low]
[related: Recession Did Less Damage in Some States]
[related: More Parents Help Adult Kids Get Homes, Cars]
[related: Analysts See Housing Impact on Economic Recovery as Minimal]
[related: New Originations Drop 30%, Loan Delinquencies Decline]
[related: Homeownership Rate Falls to 14-Year Low]
Obama Refi Plan Comes With Big Price Tag for Banks
A plan by the Obama administration to help millions of middle class families refinance their homes is coming with a big bill for the largest U.S. banks. For the first time since President Obama announced the plan during his third State of the Union last week, he offered new details on which homeowners would be eligible to participate and what the program would ultimately cost the largest banks, which will be asked to pay a fee to offset the cost.
The administration estimates the expense of the program to be anywhere between $5 billion to $10 billion. It's still unclear how fees would be assessed to the banks or when they would begin having to pay, but the administration has stressed the program must not impact the deficit. Further details will be included when the White House releases its upcoming fiscal 2013 budget in two weeks.
We do know this: Close to 15 million homeowners would be eligible for the latest initiative. To qualify, one would need a credit score of at least 580 and have missed no more than one mortgage payment over the last six months. The new loans would be insured by the FHA, whose loan limits (which range from $271,050 to $729,750, depending on the region) would apply.
Interestingly — and barely mentioned in the news coverage— the plan would encourage people to refinance into mortgages with a 20-year term instead of the customary 30 years, so they can rebuild equity faster. As an incentive, the government would cover closing costs for those who choose the 20-year option. (American Banker Online, Feb. 2)
Banks to Use Social Media Data For Loans And Pricing
There are plenty of reasons to call MovenBank Corp. Ltd. a bank of the future. It hasn't opened its doors yet, for one. And it plans to be a mobile bank for the smartphone age when it launches later this year. Perhaps more intriguing still, it will use social media information to inform its credit decisions and to determine aspects of its relationship with customers, including pricing.
"We look at a bunch of elements, and one is your ability to act as a referrer, or influencer, who can drive acquisition as a basis for connections," says Brett King, founder and chairman of MovenBank, and the author of Bank 2.0. So far, banks have limited their social media exploits to marketing and customer service experiments on Twitter and Facebook.
But financial institutions and their product vendors are aware their own customers' data has potential implications for credit decisions, relationship pricing, even collections. Some are tinkering now, others think the information could be important in the near future. And most wonder how it can be used given the way the regulations limit data collection and sharing, such as the Fair Credit Reporting Act. (American Banker Online, Jan. 27)
Education & Networking Opportunities
Feb. 8 Webinar - Regulation E Legal Update: How to Properly Handle ATM & Debit Card Claims
Given the rapid changes in electronic transfers, financial institutions are confused as to when Reg E applies. Our Feb. 8 webinar will explain how to determine if Reg E applies and how to properly handle ATM and debit card claims under Reg E, including the investigation process, when provisional credit is mandated, determining the proper amount to reimburse the consumer, notices to the consumer, and the looming deadlines. [learn more]
Feb. 9 Webinar - Required Compliance Series: Regulatory Compliance for the Board & Senior Management
An effective compliance program begins at the top. Board and management training is key in a strong compliance program. It is vital that directors understand the various compliance areas that require their annual review and approval.
This session will cover required training for BSA, fair lending, privacy, and red flags for identity theft. The board-specific high-risk areas will be addressed in layperson terms. [learn more]
News From Credit Unions
Freedom First CU Featured in US News Post on CUs' Community Development Work
The Credit Union Difference isn’t limited to monetary savings, writes Tim Chen for the My Money blog on usnews.com. "In addition to providing excellent [member] service, many credit unions give back to their local communities in a variety of creative and generous ways. Some work to promote economic and social justice by reaching out to low-income, rural and at-risk populations.
Others provide free financial education services to adults and children. And that’s just the tip of the iceberg." Yes it is and we're especially pleased to see our own Freedom First Credit Union spotlighted in the post. See it here!
The County Line is No Longer the Bottom Line
Henrico Federal Credit Union can now offer membership to the entire Richmond region thanks to its new community charter, notes RichmondBizSense.com. Henrico FCU, which has about $125 million in assets and 21,000 members, previously was restricted to offering membership only those who live, work and perform other various activities in Henrico County. Now it has the potential to offer membership to an additional 1.2 million people. [read more]
Chapter News
'Meet Your League Night' at the NoVa Chapter's Feb. 9 Meeting
We hope you will join us as at the 'Meet Your League Night' Feb. 9 as we discuss the League’s exciting new products and services! Virginia Credit Union League staff members Nathan Bowden, Michael Read, Karin Sherbin, Jeanne Sullivan and Nicole Widell will be on hand to share information on how you can take advantage of all your League has to offer.
Please note that as an added incentive, the League will pay the registration fee for one staff member and one board member from each NoVa credit union!
Location: Marriott at Fair Oaks (11787 Lee Jackson Memorial Highway, Fairfax, 22033. Time: 5:30 p.m. networking; 6 p.m. meeting; 6:30 p.m. dinner; and 7:30 p.m. speaker. To RSVP, please send an e-mail before Feb. 6 to stackett@nwfcu.org. [read more]
Tidewater Chapter Meets Feb. 16
League President Rick Pillow will deliver a program titled, "Credit Union Philosophy: It's the Stuff Dreams Are Made Of," at the Tidewater Chapter's Feb. 16 Annual Meeting.
Also on the agenda is the installation of chapter officers and thanks to its win the Virginia Credit Union Political Action Committee (VACUPAC) Chapter Challenge, the chapter will be able to auction off an iPad2 to one lucky VACUPAC donor.
Location: Greenbrier Country Club (1301 Volvo Parkway, Chesapeake, 23320). Time: 6 p.m. social; 6:30 p.m. dinner and meeting. Make your reservations early! RSVP to Ginnie Riddle at vriddle@memberstrustcu.org or phone 757.671.8874. Credit unions with assets of $5 million or less may send one representative at no cost. Cancellations accepted until noon, Feb. 14. Additional registration information online.
Roanoke Valley Chapter Meets Feb. 21
Wendy Angus, Associate Regional Director, Operations NCUA Region II will be the featured speaker at the Roanoke Valley Chapter's Feb. 21 meeting. During her 15 years at NCUA, Wendy has examined credit unions in the Chicago area and worked as an analyst in two of NCUA's regional offices. In her current position, she is responsible for risk identification, administrative action, and quality control over the supervision of the region's more than 1,600 federally insured credit unions.
Location: Salem Civic Center. Time: 6 p.m. cash bar; 7 p.m. program. RSVP: Please respond by noon on Friday, Feb. 17, with names of attendees to Becky Hutchison ( bhutchison@freedomfirst.com).
[view the information flyer]
League News
League Board Seeks Nominations for Kirsch, Farley Awards
> Deadline for nominations is Feb. 29!
Our Awards Nominating Committee is seeking prospective candidates for our annual statewide awards. The Virginia Credit Union League Board will name the winners of the 2012 James P. Kirsch Lifetime Achievement Award and the Eugene H. Farley Jr. Award of Excellence at the Annual Meeting in Norfolk on April 27.
[more here]
[register for the 2012 League Annual Meeting]
Nominating Committee Seeks Candidates for League Board Seats
The Nominating Committee of the Virginia Credit Union League seeks your recommendations for candidates for election to the Board of Directors. In 2012, five board seats are open. Your submission should be made in writing and received by the Nominating Committee by Feb. 15. [read more]
Get Recognized for Your Good Works - Complete Our Community Involvement Survey
Each year, we gather data from credit unions to spotlight their community involvement activities and charitable giving. Please complete our brief survey no later than Friday, Feb. 10, so that your credit union's accomplishments can be included in the information we share with lawmakers and the media. Click here for the online version of the survey.
> Or, if you prefer, you can complete the print-based version of this survey. Click here for the downloadable survey. (pdf, 247kb). Please fax (434.239.8148) or e-mail (pr@vacul.org) the completed form back to us. Snail mail works, too...Send it to Virginia Credit Union League, Attn: Lewis Wood, PO Box 11469, Lynchburg, 24506.
> Questions about the survey can be directed to Lewis Wood at pr@vacul.org or 800.768.3344, ext. 629.
Community Involvement
Sweets 4 Sweethearts Returns Feb. 14
On Feb. 14, or a day of your choosing in February, your League's Community Involvement Committee is sponsoring the "Sweets 4 Sweethearts" statewide fundraising campaign to support the work of the Children's Miracle Network-affiliated hospitals serving the Commonwealth.
Participation is easy ... Simply encourage staff to bring their favorite dessert to the credit union on the day of your event. Ask members visiting your lobby to make a donation to Children's Miracle Network for an opportunity to sample all the goodies! We've picked Feb. 14 as our statewide celebration, since Valentine's Days represents such a nice tie-in! Learn more about Sweets 4 Sweethearts here.
We Need Your Help: League Community Involvement Committee Seeks Financial Contributions for Annual Meeting Fundraiser
Help your League's Community Involvement Committee support the Children's Miracle Network Hospitals serving the Commonwealth! Please consider a financial contribution to aid us in purchasing items for our Charity Raffle (we're calling it the "Raffle-A-Rama") which will take place at this year's Annual Meeting (April 26 in Norfolk).
What We Need...
- Chapters: We're asking for a financial contribution of not less than $250.
- Credit Unions ($100 million or more in assets): Please consider a financial contribution of at least $250.
- Credit Unions (Less than $100 million in assets): Please consider a financial contribution of at least $50.
How This Will Work...
Rather than having credit unions and chapters lug raffle and auction items to the Annual Meeting, we thought it might make more sense to collect financial contributions and put together themed raffle packages, which will be on offer at the Annual Meeting.
This will aid us in better coordinating the event and it will mean less hassles for you! Annual Meeting attendees will be able to purchase raffle tickets for a chance to win the raffle package or packages of your choice.
How to Help...
Kindly make share drafts/checks payable to the Virginia Credit Union League and forward them to the following address by March 2: Virginia Credit Union League, Attn: Mary Amyx, PO Box 11469, Lynchburg, 24506.
Thank you for your generosity and support of the League Community Involvement Committee and our efforts to raise funds for kids in need in our communities.
[more]
Marketing News
Marketing & Business Development Council Launches Blog!
The Credit Union Marketing & Business Development Council of Virginia has launched its very own blog - CU Market Place. This blog is a marketing and business development resource for credit unions in the Virginia Credit Union League.
It’s a way for the Council to reach out, offer fresh perspectives, and get conversations started around important topics. It’ll feature short, timely articles related to the issues we face in CU marketing. Initially, the blog will feature the ideas of Council members, but they’d love to hear from you as well! See it here: http://mbdcva.wordpress.com/
Social Media Is a Tricky Business for a Tiny Bank
For smaller banks, such as the $409 million-asset The Bank of Georgia, figuring out how to use social media safely and legally isn't easy. But to The Bank of Georgia, which lacks the compliance and legal resources a larger institution has, having a social media presence is worth the hazards.
"There are benefits to using social media that we didn't want to give up," says Tammy Cash, a vice president of electronic banking at the Peachtree City-based institution. The Bank of Georgia uses Facebook to carry on basic conversations with consumers about rudimentary information such as weather-related bank closings. It's interested in broadening how it uses social networks to make customer engagement less formal and take on less of the appearance of a traditional ad or marketing campaign.
Social media "gives customers another point of access to us," Cash says. "We are a community bank and that access goes hand in hand." The use of social media as an alternative to marketing or advertising isn't just a stylistic difference. There is actually a point at which a social network communication from a bank actually crosses a line into advertising — most of the laws and regulations that govern that line aren't necessarily written for social media. (American Banker Online, Jan. 30)
CUES Seeks Golden Mirror Entries
The Credit Union Executives Society announces a call to entry for the 2012 CUES Golden Mirror Awards. CUES recognizes the credit union industry's most creative and results-producing marketing efforts in this annual competition. The early bird deadline for submissions is April 27, 2012, and the final entry deadline is May 11, 2012. Entrants can win in 27 categories. Visit cues.org/gma ( http://www.cues.org/memberresources/recognition/gmas ) for entry information.
News About The Competition
'Robo' Credit Card Suits Menace Banks
Last year JPMorgan Chase & Co took New York resident Shady Gergis to court over a few thousand dollars in allegedly unpaid credit card debt. The facts of the suit were banal, but Chase's case landed in the courtroom of Noach Dear, a Brooklyn, New York civil court judge with a reputation for being tough on collections efforts.
Taking no chances, Chase hired pricey white-shoe law firm Alston & Bird to face off against the self-represented Gergis. In June, Judge Dear threw Chase's suit out. The judge described as "robo testimony" the statements of the bank's document custodian — a 17-year Chase veteran — and made it clear that he believed Chase had failed to present evidence to support the accuracy of its own records. The case received little attention and ultimately could prove to be merely a populist fluke.
Of course, that's what many observers first said when judges began dismissing home foreclosure suits over problems with affidavits and recordkeeping — a trend that eventually mushroomed into the nationwide robo-signing mortgage scandal. Now, a growing number of judges, state attorneys general, federal agencies, consumer attorneys and academics are concluding that banks may be susceptible to similar claims in other areas of consumer lending, including the credit card market. (American Banker Online, Jan. 31)