LSCU eSignal Weekly
LSCU eNews Weekly July 16, 2012
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LSCU eNews Weekly
In This Issue
President's Point
Cooperative Image Campaign gaining attention
LSCU Top Headlines
This week's top League headlines
Governmental Affairs News
Class action overdraft lawsuits filed against Alabama CUs
This week in Alabama politics: Supreme Court rules on PACT settlement, PAC update
This week in Florida politics: Expense questions for former OFR commissioner, election money
News from the Hill: Busy time for both House, Senate
Communications News
New League multimedia online
Compliance Corner
CUNA Regulatory Advocacy Report - Week of July 16, 2012
League InfoSight highlight: Affordable Care Act Introduction Added to Employment Channel
Compliance calendar and training
Cooperative Initiatives News
Volunteer Day video shows credit union difference
Small credit unions meet with NCUA in Orlando
Education News
Save the date! LSCU Leadership Development Conference November 7-9
Education Calendar
LEVERAGE News
Giving credit union members power to be everywhere
News from You
FSU CU presented with Dora Maxwell Award
Grand re-opening scheduled for tornado damaged Secure First CU
EMPLOYMENT
View available credit union jobs
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President's Point

Cooperative Image Campaign gaining attention

The second flight of the LSCU Cooperative Image Campaign is going strong across Alabama and Florida. The $1.2 million campaign will be winding down in most markets this month. However, the Pensacola/ Mobile, Palm Beach and Miami markets will run into August. Following the campaign, we will once again be conducting research to gauge the impact the campaign had on our target audience – Gen X.

The response to the second flight of ads has been very good. The campaign is being noticed by credit unions across the country, as well as by the credit union trade press and mainstream media. About two weeks ago, the Birmingham News wrote a story about the campaign that looked at the creative idea and the execution by Scout Branding of Birmingham. A Samford University business professor, John Kottmeyer, was quoted as saying that credit unions are smart to capitalize on the bad taste banks are leaving with customers saying, “Credit unions offer the same basic banking products -- checking accounts, credit cards and auto loans -- but often offer better customer service because they're smaller than the largest financial players.” This was a nice placement for our credit unions. The story was picked up by Florida Trend and by a banker’s daily marketing email.

CUNA News Now, CU Times, CU Journal and CU Insight have each featured the Cooperative Image Campaign. The July 2 edition of the CU Journal not only had a story on the campaign; it included four pictures from the TV ad and www.betternameforbanking.com website. Creditunionsonline.com wrote a story with the headline, “LSCU’s ‘Better Name for Banking’ – A Reminder Why Credit Unions Rule,” featured quotes from Suncoast Schools FCU and Community CU of Alabama. The credit unions talked about how they are tying the campaign into their overall marketing strategy. This is a great way for credit unions to not only buy into the campaign, but to elevate the campaign’s impact. You can read these stories in the LSCU Press Room.
 
The social media side of the campaign has been much stronger for the second flight. The LSCU Facebook page has been pushing the message out, along with the League Twitter page. Many credit unions are also posting it on their Facebook pages and Twitter feeds. The League is sharing that and “tweeting” it out. We’re trying to highlight as many credit unions social media activities as possible. The campaign received a good placement during the July 4 week when the Bank Transfer Day Facebook page highlighted the campaign to its more than 58,000 followers across the country.

The creative ideas behind the tagline, “Credit Unions: we’re giving banking a better name,” are turning out to be among the freshest in the credit union movement. Recently a state league and two groups of credit unions contacted us about franchising the campaign. Earlier this year, Mississippi and Connecticut credit unions ran the TV ad.

Thank you to 110 credit unions that contributed to the campaign; this is nine more than took part last year. In a few months, our Marketing and Communications team will begin meeting with Chapters to go over the impact of the 2012 campaign and begin work on the 2013 edition. If you have any questions about the campaign or feedback, contact LSCU VP, Marketing and Communications Mike Bridges at 866.231.0545 ext. 1022.

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LSCU Top Headlines
This week's top League headlines

ATM Disclosure bill passes House, moves to Senate
H.R. 4367, the ATM Disclosure bill, passed the House by a vote of 371-to-0. The legislation, which would amend Regulation E requiring financial institutions to display a physical sign about ATM fees, now moves to the Senate. No timetable has been set. To read more, click here

NSBA pushes for MBL cap to be raised
The National Small Business Association (NSBA) released the findings of a survey that shows small businesses continue to have trouble accessing capital. The report shows that about 43 percent of businesses have had their credit reduced by a bank. The small businesses generally had a good feeling about working with credit unions. You can read more by clicking here

Settlement could bring a $50 million cost for CUs
Reduced credit card interchange rate fees--mandated as a result of an historic lawsuit settlement between merchants and credit card companies--could cost credit unions with credit card programs up to a total of $50 million, according to estimates by CUNA. To read more, click here.

LSCU/CUNA Update on Aug. 1
Mark your calendars for the LSCU/CUNA update on Wednesday, Aug. 1,  and plan to join LSCU President/CEO Patrick La Pine for an informative webinar focusing on recent LSCU and CUNA initiatives. Find out more about the webinar here.

LSCU Member Survey still open
The LSCU Member Survey will remain open until July 31. The survey gives credit unions an opportunity to provide the League with feedback and ensures that it is working on credit unions' priorities. The survey results are anonymous and used by League management and the League board in planning for 2013. The survey link has been emailed to credit union CEOs. However, if you need it re-sent, contact LSCU VP, Marketing and Communications Mike Bridges at 866.231.0545 ext. 1022.  [ Return to Top ]

Governmental Affairs News
Class action overdraft lawsuits filed against Alabama CUs

Class action lawsuits were recently filed against several Alabama credit unions for paying transactions in an order that maximizes overdraft fees. Similar class actions against banks resulted in recoveries from $410,000,000 to $55,000,000. The Trimmier Law Firm has provided an overview to the LSCU on ways credit unions can help protect themselves from lawsuits.

Among the recommendations are:

  • Ensure that all member and loan agreements prohibit class action participation 
  • Review account agreements to ensure they accurately disclose their payment ordering policy and procedures

The suits allege the credit unions intentionally reordered items for payment from largest to smallest to maximize overdraft fees. Some complaints name credit union board members as defendants, claiming violation of their fiduciary duty.

To read the overview of the class action lawsuit and more recommendations from Trimmier, click here.

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This week in Alabama politics: Supreme Court rules on PACT settlement, PAC update

Supreme Court Rules on PACT Settlement
Since the financial collapse in 2008, Alabamians and legislators have been working on a solution to underfunding of the state’s prepaid tuition program -  PACT. Two years ago the Alabama Legislature committed an additional $548 million to the program in an effort to keep the program solvent and paying full tuition of the participating students. Unfortunately, that money wasn’t enough and the PACT board reached a settlement with many parents to pay tuition at the 2010 rates with the difference being made up by the parents. The Supreme Court later voided that arrangement saying it violated state law.  In April of this year, the legislature passed a law that removed the full funding provision in the law and gave the board additional powers to reach a settlement with participants.

This past Wednesday, the Supreme Court granted a request to reconsider its previous ruling. The Court instructed Montgomery County Circuit Judge Johnny Hardwick to see if the new law, passed in April, can be retroactively applied to the PACT settlement stating that 2012 rates would be paid. If needed, the Supreme Court can then review his decision. There are parents on both sides of the issue. Some like the 2010 rates settlement because they feel it is the best opportunity to keep the PACT program going. Others say that retroactively applying the new law takes away their vested interests and the obligation to the program. The case will now be litigated.

PAC Update and Six Flags Promotion
July marks the halfway point in the fundraising for both the LSCU FEDPAC and the State ACULAC. Currently, the LSCU has raised 51 percent of its LSCU FEDPAC goal, and 45 percent of its ACULAC goal. While fundraising has been strong through the first part of the year, there is still a long way to go. Credit unions can still become involved in fundraising for the LSCU FEDPAC through personal contributions, payroll deduction, and deduct-a-buck. Credit unions can also raise money for the state ACULAC through consignment tickets, chapter raffles, and corporate contributions.

The LSCU Consignment Ticket Program continues to sell Splash Adventure and Six Flags tickets. This year there is something extra to offer. Six Flags will be offering a special promotion to the credit unions selling six flag tickets. For $36, a participant will receive all-day admission to Six Flags, a buffet lunch,  free parking, and a free White Water return ticket valid the following day after the event. This special promotion has a total value of $133. The event will take place on Aug. 18 and all tickets will be available online. Please be on the lookout for more information. If you would like to participate in the LSCU Consignment ticket program contact LSCU Grassroots and PAC Coordinator Blake Westbrook at 866.231.0545, ext. 2164.

Follow the GA team legislative updates on Twitter and Facebook.

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

This week in Florida politics: Expense questions for former OFR commissioner, election money

Former OFR Commissioner Cut Agency, But Not His Expenses
During his brief tenure as commissioner of the Florida Office of Financial Regulation, Tom Grady helped slash the agency’s budget with moves that included closing several regional offices. But Grady, a former House member and a Naples neighbor of Gov. Rick Scott, also faces questions about such things as travel expenses and furniture purchases according to a report in the Tampa Bay Times. Among the items under question is a charge to the state of $800 for a 2-day banking conference in Atlanta where he skipped the second day to leave for vacation; expensive in-state travel including stays at the Ritz Carlton in Sarasota; and reimbursement for more than $10,000 worth of furniture expenses. To read the entire report, click here.

Follow the Money
Many ask how to gauge who is going to win an election, and one piece of information that is always helpful is the recently filed campaign finance reports for the second quarter. Large sums of money flowed to many of the top high-profile candidates that are trying to win empty or new seats. A prime example is former Senate President Tom Lee, a Brandon Republican, who collected $199,585 in contributions as he tries to return to the Senate in District 24. Lee is in the midst of a very contentious Republican primary against current State Rep. Rachel Burgin, a credit union supporter, as they seek to replace Sen. Ronda Storms who is not seeking re-election. Burgin raised $50,248 during the year’s second quarter and, combined with money she raised before Storms’ announcement, has an overall total of $122,223.

Another example is a South Florida Senate race that pits two incumbents whose districts were redrawn as part of the once-a-decade reapportionment process. Sen. Ellyn Bogdanoff (R-Fort Lauderdale) reported raising $106,196 during the quarter, giving her an overall total of $366,767. Meanwhile, her opponent, Democratic incumbent Maria Sachs of Boca Raton, raised $88,940 this quarter for a total of $173,915. The reports, which are due Friday, are the first batch since courts resolved questions about new legislative districts and candidates formally qualified. They also come as candidate’s ramp up their campaigns before the Aug. 14 primary elections. In a hard-fought Senate District 22 primary in the Tampa Bay area, Rep. Jim Frishe (R-St. Petersburg), another credit union supporter, raised $71,932 during the quarter, giving him an overall total of $246,696. Frishe faces Republican Rep. Jeff Brandes, who earlier this week reported raising $68,450 during the second quarter. Brandes also has loaned $500,000 to his campaign.

Up the Interstate 4 corridor, Democratic Rep. Darren Soto of Orlando raised $62,736 during the quarter, giving him a total of $94,386 in his race for Senate District 14, which does not have an incumbent. Republican candidate Will McBride of Orlando reported raising $42,487 but also loaned his campaign $205,000. Incoming Senate President Don Gaetz (R-Niceville) does not have a Democratic opponent this year, but he received $160,090 during the quarter. That brought his overall total to $632,350. 

To read the complete Florida Politics Week in Review including important information on the League's election activity, the LSCU Action Center, Project Zip Code, and PAC fundraising, click here.

Don't forget to follow developing news and legislation updates from GA on Twitter and Facebook.

For questions regarding this update or credit union legislation in Florida, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545, ext. 1012. [ Return to Top ]

News from the Hill: Busy time for both House, Senate

Floor Schedule
The Senate convenes Monday at 2 p.m. and at 5 p.m. The Senate will proceed to Executive Session to consider the nomination of Kevin McNulty to be United States District Judge for the district of New Jersey. The Senate will then begin consideration of a campaign finance bill, the “Democracy is Strengthened by Casting Light on Spending in Elections (DISCLOSE) Act” (S. 3369). The Senate may also consider the “Bring Jobs Home Act” (S. 3364).

The House comes back Tuesday and will consider bills under suspension of the rules. The House will also consider the “Sequestration Transparency Act” (H.R. 5872) and the “Department of Defense Appropriations Act for FY 2013” (H.R. 5856).

Committee Meetings
As usual, the League and CUNA are following several committee hearings and mark-ups on both sides of the Capitol: Tuesday, the Senate Agriculture, Nutrition, and Forestry Committee will hold an oversight hearing on the Dodd-Frank Act, focusing on its impact over the past two years. The Senate Banking, Housing, and Urban Affairs Committee will hold a hearing to receive the semiannual Monetary Policy Report to Congress from the Federal Reserve System.

To read the complete News from the Hill update including the complete committee schedule, click here.

If you have any questions regarding the News from the Hill Update, contact LSCU VP, Governmental Affairs Jared Ross at 866.231.0545, ext. 1012 or LSCU Director, Governmental Affairs Jason Cochran at ext. 2159. [ Return to Top ]

Communications News
New League multimedia online

The LSCU has a number of new videos in the LSCU Video Room. LSCU VP, Marketing and Communications Mike Bridges provides a wrap up of the 2012 Annual Convention and Exposition from Orlando. The wrap-up video looks at the Annual Business meeting speakers, the keynote speakers, Game Change authors Mark Halperin and John Heilemann, as well as the 20 education sessions. The video is a good way to see what you are missing if you didn't attend the AC&E or if you did and didn't see everything.

The LSCU awards were handed out at the AC&E. Each award was accompanied by a video. Each LSCU Award video is now available. This is a great way to see all of the good works being done by credit unions and individuals who have given their life to the movement.

To see the latest League videos, visit the LSCU Video Room.

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Compliance Corner
CUNA Regulatory Advocacy Report - Week of July 16, 2012

This week's edition of the CUNA Regulatory Advocacy Report covers issues such as:  CFPB proposes new RESPA/TILA rule and disclosure, NCUA holds a "Listening Session" in San Diego, CFTC excludes credit unions and banks of $10 billion or less from Swap-Clearing Requirements, and more.

Click here to read the complete edition of the CUNA Regulatory Advocacy Report. [ Return to Top ]

League InfoSight highlight: Affordable Care Act Introduction Added to Employment Channel
The United States Supreme Court’s recent ruling largely upheld the Affordable Health Care Act. To provide information and links to resources that your credit union needs to remain in compliance, the Affordable Care Act Introduction topic was added to Employment Channel.

For credit unions, the ruling presents a need for a compliance review, according to Brad Pricer, human resources process leader at CUNA Mutual Group. In a YouTube video posted within a few hours of the Supreme Court’s ruling, Pricer noted, “A lot of credit unions—not just credit unions, but employers in general—were waiting for this decision to see what it was they would have to do, waiting to see what compliance steps they would have to take.”

CUNA Mutual has posted an online toolkit with a compliance checklist and timeline detailing the implementation of the act. While some provisions of the Act went into effect two years ago, the timeline continues through 2018. 

To find out more about the Affordable Care Act addition, visit League InfoSight.

The current issues of the InfoSight eNewsletter for Alabama and Florida are now available on the InfoSight homepage in the left-hand column. Members must login to the League website with username and password. If you do not have access to the League website, click here to sign up. After you are logged in to www.lscu.coop, click on the InfoSight tab. [ Return to Top ]

Compliance calendar and training

July 2012

    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.

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    Cooperative Initiatives News
    Volunteer Day video shows credit union difference

    In June, a Volunteer Day was held for the "leave behind" project from the Southeastern Credit Union Foundation and CUNA. The "leave behind" project, in honor of the Republican National Convention, is a therapeutic playground at All Children's Hospital in St. Petersburg.

    In the video, more than 75 volunteers from credit unions, the League, CUNA and the Republican National Party are seen planting 1,400 flowers, shrubs, trees as well as buildng toys. LSCU President/CEO Patrick La Pine talks about how credit unions are not only raising money for the project, but getting dirty by helping to build it. All Children's Hospital Director of Physical Therapy, Maggie Reilly, says the playground will allow patients who normally rehabilitate indoors to come out to the playground. Rep. Jim Frishe (R-54th) says communities need glue to keep them together and credit unions are showing that by helping to build the playground. 

    The ribbon cutting for the $300,000 playground, which is being funded by credit unions from Alabama, Florida and across the country, will be in August during the convention. You can learn more about the project and how you can donate on the SECUF website. For more information about the"leave behind" project and how your credit union can get involved, contact SECUF Executive Director Leonard Parkhurst at 866.231.0545 ext. 1154.

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    Small credit unions meet with NCUA in Orlando

    The NCUA Office of Small Credit Union Initiative (OSCUI) held a workshop in Orlando on July 12 to give credit unions an opportunity to discuss issues and learn more about a variety of topics. 

    About 60 credit union staff attended the workshop that included an overview of the OSCUI. Sharon Daigle spoke on Issues facing credit unions and how the office can work with credit unions. There was a session on fraud (pictured above) and LSCU Member Relations Specialist Judy Scott spoke on Financial Literacy Outreach.

    The OSCUI is holding similar workshops across the country.

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    Education News
    Save the date! LSCU Leadership Development Conference November 7-9

    Save the date! The 2012 LSCU Leadership Development Conference is scheduled for Nov. 7-9, 2012 (Wednesday through Friday) in Point Clear, AL.

    Hotel reservations may be made now at the Grand Hotel Marriott Resort with a group room rate of $159.

    Stay tuned for more information or visit the Events Calendar on www.lscu.coop. [ Return to Top ]

    Education Calendar

    Upcoming Events:

    Wednesday, July 18
    10 Lessons Learned on Deceased Accounts
    3 to 4:30 p.m. EST - webinar

    Tuesday, July 24
    Rule Review & Understanding Loan Documents for the New Mortgage Lender
    3to 4:30 p.m. EST - webinar

    Wednesday, July 25
    Bank Secrecy Act Training
    Tuscaloosa, AL
    Morning Session - 10 a.m. to 12:30 p.m. EST
    Afternoon Session - 2 p.m. to 4:30 p.m.

    To view the complete LSCU Events Calendar, click here.

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    LEVERAGE News
    Giving credit union members power to be everywhere

    Legacy Community Federal Credit Union renewed its contract for debit card processing. This gives the credit union the power to be everywhere for its members. With the CO-OP Debit Card Program, a LEVERAGE business partner, credit unions gain access to consolidated infrastructures, network connections, authorization processes, and settlement points so that members can access their accounts wherever they’re located. This includes access to the 28,000 surcharge-free ATM network with CO-OP, 9,000 of which accept deposits.

    Learn more about obtaining the power to be everywhere for your members by contacting a LEVERAGE Business Development Consultant. [ Return to Top ]

    News from You
    FSU CU presented with Dora Maxwell Award

    Florida State University Credit Union won a 2nd Place Dora Maxwell Award in the $100-200 million category. Stephen Taylor of FSU Credit Union (right) accepted the Dora Maxwell award alongside LSCU Member Relations Specialist April Ales (left). The award is in recognition of outstanding achievement in a social responsibility program.

      [ Return to Top ]

    Grand re-opening scheduled for tornado damaged Secure First CU

    Secure First’s reconstruction of the main office on Winewood Road began shortly after the devastating tornado on Jan. 23, and will be completed next week. A ribbon cutting ceremony is scheduled for 9 a.m. on July 19. The credit union will celebrate with its members all day with door prizes and giveaways. “We are grateful that no one was injured and the credit union has been able to operate after sustaining such considerable damage,” said Secure First President, Jordan Sullivan. “We have been operating our main office throughout the renovation thanks to Pensacola’s Pen Air Credit Union allowing us to use their mobile unit.” [ 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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