LSCU eSignal Weekly
LSCU eNews Weekly November 14, 2011
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LSCU eNews Weekly
In This Issue
President's Point
Bank Transfer Day was a gift; keep momentum going
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
This week in Alabama politics: GOP qualifying for 2012 elections, vote set for Birmingham moratorium
This week in Florida politics: Public deposits bill filed in Senate , FL GOP lawsuit heats up
News from the Hill: Congressional Super Committee deadline, floor, committee schedules
Compliance Corner
League InfoSight highlight: Fair Debt Collection Practices Act
Compliance calendar and training
Cooperative Initiatives News
Tynan appointed to FL Prosperity Partnership board
Education News
Education Calendar
LEVERAGE News
Ultimate credit union resource for profit recovery
LEVERAGE partners with Invest in America, your tax-prep solution
News from You
CU4Kids takes part in Torch Relay in Orlando
Palm Beach branch for sale
EMPLOYMENT
View available credit union jobs
In This Issue
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President's Point

Bank Transfer Day was a gift; keep momentum going

Credit unions have had an amazing 30 days. The positive press coverage from the bank fees story and Bank Transfer Day may be the most the industry has ever seen in this short time period. Consumer awareness has translated into new credit union membership. CUNA estimates that credit unions added 650,000 new members in the month of October. It’s estimated that Alabama and Florida credit unions added more than 44,000 members and $300 million in deposits during the month.

The figures above don’t factor in the actual Bank Transfer Day. CUNA also estimates that Saturday Nov. 5 alone saw about 40,000 new members sign up at credit unions. Broken down by state, Alabama and Florida credit unions are estimated to have welcomed nearly 3,000 members and almost $6 million in new deposits. The League is currently surveying our membership to get a clearer picture of Bank Transfer Day because the press is still calling about actual numbers. One credit union told us it has had its best month in decades. Another has signed up more new members in October than the entire second-half of 2010.

Recently some leagues were talking about if Bank Transfer Day should become an every year event. The reality is that every day is a great day to switch to a credit union. That’s the sentiment we should be building on from Bank Transfer Day. Many consumers have looked into credit unions since the bank fees were announced and subsequently rescinded, but that doesn’t mean that now that Bank Transfer Day is over that it’s back to business as usual. We have a tremendous opportunity right now.

I’m hopeful that credit unions’ marketing plans are flexible enough to take advantage of the high degree of consumer awareness. We’ve heard from some credit unions that are advertising their debit card program and that they will pay their members $5 per month based on card usage. Others say they are making a renewed effort to get in front of their membership with marketing materials, t-shirts and information about the credit union difference. I hope your credit union has been working on ways to keep the momentum of Bank Transfer Day going. Let’s not take our foot off the pedal.

One more thing to think about as these new members begin using credit union services. It’s doubly important that our customer service is sterling. These members are upset the way they’ve been treated by the big banks; we need to ensure they see, feel and experience the credit union difference. You all give great service, but even kicking up the member experience another notch will pay dividends down the road.

We live in a society where social media has important power. You only have to look to Bank Transfer Day to see how it can affect change. The silent majority is no longer silent, it has a voice and it’s speaking very loudly right now. Bank Transfer Day was a gift to credit unions. Let’s make sure the gift keeps giving and isn’t thrown in the closet a month later.   
  
I welcome your thoughts and feedback.

  [ Return to Top ]

LSCU Top Headlines
This week's top League headlines

Almost 3,000 join CUs in AL, FL on 'Bank Transfer Day' survey shows
Estimates from CUNA show that 40,000 consumers joined a credit union on “Bank Transfer Day,” Nov. 5, depositing millions in new savings and giving credit unions a brisk day of lending. Click here for the full story.

NCUA assessments may be lower in 2012
The CU Times is reporting that the NCUA believes corporate credit union stabilization assessments for 2012 will be between 8 and 11 basis points. CUNA has estimated that the assessments should be 9 basis points for five years. The Times also reports that the NCUSIF assessments will be between 0 and 7 basis points, with no assessment likely. To read the full story, visit the CU Times

Decker not on Senate list this week
It doesn't appear that Carla Decker will be considered for an NCUA board seat this week. The Senate Banking Committee released its list of people to be considered for confirmation and Decker was not on the list. When confirmed, Decker will take the seat currently held by Gigi Hyland. The CU Times has more in-depth story.

Cheney to testify on bank bill
CUNA President/CEO Bill Cheney is one of a number of people asked to testify on the banking regulatory relief bill H.R. 1697 on Nov. 16. Rep. Blaine Luetkemeyer (R-MO) introduced the bill this spring. It's designed to loosen some community-bank related regulations. It's not uncommon for CUNA to provide comments on larger financial institution bills, but it is rare for CUNA to be asked to testify. Click here to read more.

CUNA Regulatory Report
The most recent edition of the CUNA Regulatory Report covers the new NCUA Board nominee, the NCUA Virtual Town Hall, the NCUA's response to President Obama's Executive Order 13579, and more. Click here to read the complete CUNA Regulatory Report.


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Governmental Affairs News
This week in Alabama politics: GOP qualifying for 2012 elections, vote set for Birmingham moratorium

GOP Qualifying for 2012 Elections
Nov. 14 is the first day the potential candidates for the Republican Party primary may officially file their paperwork in order to qualify. Chief Justice appears to be the major race on the ballot for 2012, but another race has been getting some headlines as of late. The race is for President of the Public Service Commission, currently held by Lucy Baxley. Baxley is the sole Democrat holding a statewide office in Alabama, and the Republican Party will definitely want to send her home. There are a potentially three candidates that will fight for the opportunity to unseat Baxley next November. Chip Brown of Mobile, and Kathy Peterson of Shelby County have already started campaigns. The third, current PSC Commissioner Twinkle Andress Cavanaugh, will make an announcement today about her intentions.

Democrats will begin their qualifying on Dec. 3.

Birmingham City Council to Vote on Moratorium
On Nov. 15, the Birmingham City Council will vote on whether or not to impose a moratorium on the future growth of what is commonly known as payday lenders. The proposal would ban any new title loan or payday loan businesses from opening for the next year. American Association for Retired Persons (AARP) has contacted the council offering their support to the ban.

This is the second time the moratorium has been sought. The first time, the proposal came up short due to concerns over the legality of the ordinance.

For questions regarding legislative affairs issues in Alabama, contact LSCU Director, Legislative Affairs Jason Cochran at 866.231.0545, ext. 2159. [ Return to Top ]

This week in Florida politics: Public deposits bill filed in Senate , FL GOP lawsuit heats up

The Florida Legislature returns to Tallahassee this week for its second to last interim committee week prior to the 2012 Legislative Session. Budget discussions will be the primary focus for this week, however, several other important topics will certainly be broached, including gaming, redistricting and health care issues. The LSCU Governmental Affairs (GA) team will be meeting with Senate leaders today to discuss credit unions' legislative priorities, and continue to meet with other legislative leaders to help move those priorities forward. The Senate version of the credit union public deposits bill, SB 936, was filed by Sen. Chris Smith (D-Ft. Lauderdale) Monday, Nov. 14. Following this week, the only remaining committee week prior to the regular session will be the week of Dec. 5. The 60-day 2012 Legislative Session is expected to run from Jan. 10 to March 9.

Grassroots Activity
As the 2012 Legislative Session gets closer, it remains important for grassroots advocates to do their part in helping the credit union movement go forward. Planning Chapter Legislative Nights, in-district meetings with your legislators, emails, letters, or phone calls all make a difference. The GA team is here to help you plan all grassroots activities.

Also, the GA team has been working hard getting ready to unveil the LSCU’s new online grassroots advocacy tool, VOCUS Action Center. With VOCUS, the LSCU will be making it easier for credit union staff and members to contact their elected officials. However, in order to utilizethe action center's grassroots functions, an LSCU website log-in is required. If you do not currently have a log-in for the League website, make sure you register for one by clicking here. Once you are logged in to the website, go to the VOCUS Action Center webpage. Click "Federal Issues" or "State Issues" to view those that are current. Also, be sure to update your profile (located on the right of either of the issues pages) to your home address so it will personalize it to your elected officials. As the 2012 Legislative Sessions in both Florida and Alabama move closer, our grassroots activity will continue to grow in importance. The League will need the entire network available and ready to contact lawmakers to help advance legislative priorities.

PAC Fundraising
The year is quickly coming to an end, and Political Action Committee (PAC) fundraising remains a priority for the League. LSCU Grassroots and Political Action Coordinator Andy Gonzalez has spent a lot of time on the road meeting with credit unions to discuss the importance of political giving, and to help credit unions and chapters reach their goals. The League is getting closer to its CUPAC goal of $250,000 for the year; however, it'sjust halfway to its FEDPAC goal of $125,000. Please do not wait until the last minute to send your CUPAC and FEDPAC contributions in. Politics is a year-round process and the LSCU needs your support in order to be part of that process.

If you have any questions about VOCUS, Grassroots Activities, or PAC Fundraising, please contact LSCU Grassroots and Political Action Coordinator Andy Gonzalez at 866.231.0545, ext. 1010.

Florida GOP Lawsuit Heats Up This Week
According to the Orlando Sentinel, Damon Chase, a lawyer for former Republican Party of Florida Chairman Jim Greer, has sent party attorneys a list of 50 people he says he wants to depose. The list includes former Gov. Charlie Crist (I), former Attorney General Bill McCollum (R), former U.S. Sen. Mel Martinez (R), former U.S. Sen. and current candidate, George LeMieux (R-FL), former U.S. Rep. Tom Feeney (R-FL), and U.S. Sen. John McCain (R-AZ), the GOP’s 2008 presidential nominee. Chase also sent a request last week for thousands of documents, including all written communications between the party and U.S. Sen. Marco Rubio (R-FL), Florida Speaker of the House Dean Cannon (R), Florida Senate President Mike Haridopolos (R), and McCollum. Chase is also seeking many other records such as travel and entertainment expenses, as well as contributions to political action committees dating back seven years. In the criminal case, Greer’s attorneys are set to depose at least five party insiders next week in Tallahassee, according to court records. On Thursday, they’re to question Haridopolos; Pat Bainter, a pollster and political consultant; Meredith O’Rourke, a highly-paid party fundraiser who resigned under pressure from Greer; and Brian Ballard, a major lobbyist.

If you have any questions on any of the legislative issues mentioned above contact LSCU Director, Legislative Affairs Jared Ross at 866.231.0545, ext.1012. [ Return to Top ]

News from the Hill: Congressional Super Committee deadline, floor, committee schedules

Two deadlines face Congress before the break. On Nov. 18, the continuing resolution that has been funding the government since Oct. 1 is set to expire. On Nov. 23, the Super Committee faces a deadline to vote on deficit reduction legislation.

Floor Schedule
The House comes back Monday and will consider legislation under suspension of the rules. On Tuesday, the House will consider the Senate amendments to H.R. 674, a Medicare related bill. The House is then expected to complete consideration of H.R. 2838, the Coast Guard and Maritime Transportation Act.  Later in the week, the House is expected to consider H.R. 822, the National Right-to-Carry Reciprocity Act, the conference report on H.R. 2112, the Consolidated and Further Continuing Appropriations Act, and H.J.Res. 2, proposing a balanced budget amendment to the Constitution.

H.R. 2112 is the appropriations bill for the departments of Agriculture, Commerce, Justice, Transportation and Housing, and Urban Development. The legislation also includes a continuing resolution which is expected to fund the government until mid-December.

The Senate comes back on Tuesday and will resume consideration of the second “minibus” appropriations bill, which is expected to include the Energy and Water, Financial Services and General Government and State-Foreign Operations. It is not clear whether the Senate will complete consideration of this legislation this week.  At some point this week, the Senate is expected to consider the conference report on H.R. 2112, clearing the way for it to be sent to the President.

To read this week's full committee schedule, click here

For questions about the News from the Hill Update or other governmental affairs issues on the Hill, contact LSCU VP, Governmental Affairs Will McCarty at 866.231.0545, ext. 2137.

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Compliance Corner
League InfoSight highlight: Fair Debt Collection Practices Act

The current edition of the League InfoSight newsletter covers the Fair Debt Collection Practices Act, and what credit unions should do in the event members file for bankruptcy.

CUNA News Now recently report that U.S. bankruptcy filings are down eight percent for fiscal year 2011 (the 12-month period ending Sept. 30). That is consistent with credit union loan delinquencies, which fell to a cyclical low in the past year, according to CUNA.

Despite this news, it’s good to be prepared and know what is expected of your credit union in the event that a member files for bankruptcy.

The Bankruptcy and Collections channel on InfoSight contains the information needed to stay in compliance. For example, the Fair Debt Collection Practices Act (FDCPA) is summarized and a link is provided to the Act on the Federal Trade Commission’s website.

To read more about the Fair Debt Collection Practices, visit the latest edition of League InfoSight.

For more helpful reminders and tips, view the League InfoSight newsletter by clicking here. It is a password-protected area. Member credit unions that do not have a password, may click here to sign up for one. An active email account and a password are required. To log in to InfoSight, enter your email and password in the InfoSight login block (see graphic below) located in the upper right of any of the LSCU web pages.

  [ Return to Top ]

Compliance calendar and training

November 2011

  • November 24: Thanksgiving Day - Federal Holiday

      For the complete list of calendar dates and compliance trainings, visit the LSCU Compliance Calendar

      *Note: To view InfoSight content, it is required to log in to www.lscu.coop for access.

      [ Return to Top ]

      Cooperative Initiatives News
      Tynan appointed to FL Prosperity Partnership board

      The Florida Prosperity Partnership (FPP) is a statewide collaboration of more than 140 partners dedicated to improving the financial stability for low-to-moderate income Floridians. The FPP members collaborate to achieve economies of scale and leverage the results of the individual organizations, thereby increasing the combined outcomes for improving the financial stability and well-being of Floridians. 

      The partnership's mission is to engage, through a statewide collaboration of organizations that are holistically focused, in providing life-enhancing services to Floridians. The FPP convenes individuals and organizations with the desire to utilize their talent, resources, and passion to improve the prosperity of Florida’s families.

      To find out more about the Florida Prosperity Partnership, click here.  [ Return to Top ]

      Education News
      Education Calendar

      Upcoming Events:

      Tuesday, Nov. 15
      Your Credit Union's IRS Information Returns: What to Report & Ways to Ensure Accuracy
      3 to 4:30 p.m. EST - Webinar

      Wednesday, Nov. 16
      IRA Basics
      3 to 4:30 p.m. EST - Webinar

      Wednesday, Nov. 30
      Consumer Lending Series: Legal Issues in Collections
      3 to 4:30 p.m. EST - Webinar

      To view the 2012 LSCU Education Calendar of Events, click here.

      [ Return to Top ]

      LEVERAGE News
      Ultimate credit union resource for profit recovery

      Transworld Systems, the nation’s leader in profit recovery, brings credit unions a solution for reducing charge-offs while increasing recoveries. Negative share draft accounts, which tend to increase with overdraft privilege programs, can be a serious hindrance to credit unions depending on how they are handled. This solution is designed to improve operational efficiencies surrounding collections resulting from negative share draft accounts.

      Transworld, a proven leader with more than 40 years of industry experience, has helped more than 750 credit unions nationwide, recover 25-50 percent of their negative balance accounts, while reducing charge-offs by 30-60 percent. The services they provide help credit unions increase recovery rates on negative accounts by 500-700 percent and reduce collection costs by 65-95 percent. Transworld not only reduces the amount of charge-offs a credit union normally experiences, they have a penchant for salvaging accounts which is good for both the credit union and its members.

      For more information contact a LEVERAGE Business Development Consultant. [ Return to Top ]

      LEVERAGE partners with Invest in America, your tax-prep solution

      Tax season is just around the corner, and soon your members will be filing their returns and making decisions on where to deposit their refunds or finding alternatives to pay taxes owed. LEVERAGE has partnered with Invest in America to deliver valuable discounts on tax-preparation services to your members. 

      Two of the biggest names today in tax preparation are TurboTax and Jackson Hewitt. Your credit union can sign-up today to offer significant discounts on both of these services to your members. The discount for TurboTax is 15 percent off all Federal tax preparation software products, while Jackson Hewitt offers a $30 coupon for tax preparation services. Best of all, providing these discounts to your members is free. To participate at the partner level you need to:

      • Send one dedicated TurboTax email before Jan. 26, 2012 and a second dedicated email before April 1, 2012
      • Post a TurboTax banner above-the-fold on your homepage and online banking pages for the duration of tax season (December – April)
      • Promote the Invest in America TurboTax sweepstakes for members who sign-up for TurboTax from your credit union, in your newsletter or statement inserts before Jan. 26, 2012

      For more information on the tax preparation member discount, contact LEVERAGE or click here. [ Return to Top ]

      News from You
      CU4Kids takes part in Torch Relay in Orlando

      The 10th Annual Torch Relay for Greater Orlando Children's Miracle Network Hospitals was held Nov. 12. Participants took part in a 5K walk, 15-mile walk, 60 mile performance cycling event or a 220 mile motorcycle ride. 

      (l to r) Children's Miracle Network Development Associate Brittany Moro, Miracle Child J.P. Lugo, and his mother Pam. 

        [ Return to Top ]

      Palm Beach branch for sale

      First Choice Credit Union, based in Palm Beach, has a 5,000 square foot branch for sale in Royal Palm Beach. If any credit union is interested in looking at the property, contact First Choice CEO Michael Welte at 561.641.0100. [ Return to Top ]

      EMPLOYMENT
      View available credit union jobs

      To view the available jobs on the LSCU homepage, visit the LSCU CU Jobs Center. [ Return to Top ]

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