Around the States: Recent News Stories

Oct. 4, 2024 News Stories

How to Spot a Hurricane-Related Scam

Erin Jones, Verify

Scammers often prey on vulnerable people in need of help after a hurricane. Here are tips on how to avoid falling victim to a scam during hurricane season.

Hurricanes can cause widespread power outages and displace hundreds or thousands of people. People may be desperate for assistance as they recover from the storm’s damage. Scammers often prey on vulnerable people in need of help after a hurricane batters their area, as well as others looking to help the storm’s victims. Here are VERIFIED tips on how to spot a scam during hurricane season.

WHAT WE FOUND: Common hurricane-related scams and tactics

In the aftermath of a hurricane, scammers have been known to pose as officials who work for government disaster assistance agencies, like FEMA, insurance companies, or building contractors, all of our sources say. They also pretend to be representatives of charities seeking donations for disaster relief or people asking for help on crowdfunding websites, such as GoFundMe.

Many cybercriminals use email or text messages for phishing attacks or use spoofing techniques to make the call appear to be official, according to the Federal Communications Commission (FCC). Spoofing is when a caller deliberately falsifies the information transmitted to the caller ID display to disguise their identity. They also target people through social media posts and sometimes create phony websites to prey on people in need of help.

“Fraudulent emails and social media messages—often containing malicious links or attachments—are common after major natural disasters,” the Cybersecurity and Infrastructure Security Agency (CISA) warns on its website. Read more

Previewing the NASCUS State System Summit in Colorado Springs

The National Association of State Credit Union Supervisors (NASCUS) will convene its 59th annual meeting, the State System Summit (S3), from October 21-23, 2024, at the Broadmoor in Colorado Springs, CO. This premier event offers a distinctive opportunity for state regulators and credit union system stakeholders to engage with one another over a multi-day platform.

The NASCUS Summit is a unique platform for dialogue, innovative problem-solving, and collaboration across the credit union landscape. It’s a chance for all of us to come together and shape the future of our industry. Read more

GreenState Teams Up with Local Brewery to Make a Greener Iowa

Big Grove Brewery and GreenState Credit Union have announced the release of the fourth annual A Greener State of Mind, a citrus-forward pale ale. The collaboration between the brewery and credit union aims to support environmental efforts across Iowa. Proceeds from the beer will go to the Iowa division of the Izaak Walton League, a nonprofit focused on conserving and promoting the sustainable use of the state’s natural resources.

The funding will aid the League’s citizen scientist programs, including the purchase of water testing kits for the Save Our Streams initiative, which trains volunteers to monitor local waterways and gather water quality data.

Corporate Central Proudly Sponsors Tunnel to Towers Run & Walk Event, Honoring Heroes

Corporate Central is honored to have been the main sponsor of a recent Tunnel to Towers Run & Walk event, demonstrating commitment to supporting the heroes who have served our nation and our communities. The event, which took place on Saturday, August 3 in Muskego, WI, saw participants from all walks of life come together to honor the sacrifices made by first responders and military personnel in the line of duty.

The Tunnel to Towers Foundation, inspired by the heroism of New York firefighter Stephen Siller who lost his life in the towers on September 11, 2001, provides mortgage-free homes to Gold Star and fallen first responder families, builds smart homes for catastrophically injured veterans and first responders, and supports the families of these heroes with various forms of financial assistance. By sponsoring this event, Corporate Central is proud to contribute to these noble causes and reinforce its dedication to community support and social responsibility. Read more

Sept. 27, 2024 News Stories

Virginia Bureau of Financial Institutions Receives NASCUS Reaccreditation

The National Association of State Credit Union Supervisors (NASCUS) is proud to announce that the Virginia State Corporation Commission, Bureau of Financial Institutions (BFI) has earned Reaccreditation following a series of in-depth reviews and assessments by a panel of veteran state supervisors.

“Our department is committed to best practices and top-tier service. Accreditation ensures we meet the highest national standards, promoting regulatory consistency and validating our competency and transparency,” commented Virginia BFI Commissioner Joe Face. “I’m proud of our team for achieving NASCUS accreditation, confirming the quality of our work, and strengthening the public trust.”

The process of Accreditation entails a thorough evaluation and continuous monitoring carried out by the NASCUS Performance Standards Committee (PSC), consisting of experienced regulators from accredited state agencies.

“This peer-reviewed program highlights the accomplishments of state credit union regulators in efficiently executing regulatory and supervisory programs,” said NASCUS President and CEO Brian Knight. “Achieving NASCUS Accreditation demonstrates the outstanding capabilities of state regulatory agencies in meeting the highest standards of regulatory excellence. Additionally, the accreditation process can uncover opportunities for improvements in statutes, regulations, or supervision, further strengthening both the agency and the state’s charter.” Read more 

California Bans Medical Bills from Credit Reports, Limits Bank Overdraft Fees With New Consumer Protection Laws

Cecilio Padilla, CBS News

California Gov. Gavin Newsom signed a package of legislation into law Tuesday aimed at protecting consumers, his office announced. In total, 19 bills were signed by Newsom. His office said in a statement that the legislation addresses “issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.”

Medical debt barred from credit reports
Senate Bill 1061 by Sen. Monique Limón (D-Santa Barbara) will bar the inclusion of most medical bills on a credit report. Under the law, medical debt listed on a credit report will be prohibited from being considered a negative factor in decisions to extend credit. “No Californian should be unable to secure housing, a loan, or even a job because they accessed necessary medical care,” Limón said in a statement. Limón’s bill was supported by California Attorney General Rob Bonta, who praised the new law on Tuesday. “When someone is scared and in pain, the last thing they should think about is whether seeking care will take away their ability to buy a house or land a job,” Bonta said in a statement.

Canceling subscriptions, auto-renewals made easier
Assembly Bill 2863 by Pilar Schiavo’s (D-Chatsworth) amends California’s Automatic Renewal Law for subscription services, requiring businesses that use auto-renewals to make it just as easy to cancel a subscription as it was to sign up for — a “Click to Cancel” option, as described by Schiavo. Read more 

UFCU’s Mobile Branch Drives Financial Sense In Underserved Communities

Savana Morie, CreditUnions.com

The Texas credit union is extending financial services and resources to geographical areas with limited or no banking presence.

Top-Level Takeaways

  • UFCU’s mobile branch is breaking down barriers for underserved communities by providing convenient access to essential banking services, financial education, and trusted support right where people need it.
  • The credit union builds trust by offering bilingual services, fostering personal connections, and partnering with local organizations to understand and meet the financial needs of residents.

Banking looks a lot different for Americans today than it did a decade or two ago. Unfortunately, even with evolving technologies that offer accessibility and convenience, millions of people remain under or unbanked.

In 2023, 5% of census tracts in Texas were classified as banking deserts, with another 5% at risk of becoming a desert if a branch were to close. This includes several regions surrounding the state capitol, home of University Federal Credit Union. Read more 

American Bankers Association Invests In ‘The Bank of The Future’

Kim Riley, Financial Regulation News

The American Bankers Association (ABA) on Tuesday announced investments in Monit, a small business insight platform, and Posh, which provides artificial intelligence-based virtual agents designed for financial institutions.

The two new venture investments highlight ABA’s ongoing support for businesses and technologies that promise to help banks succeed, the association said, noting that its board of directors approved the investments.

“ABA is committed to supporting the bank of the future through responsible innovation, and part of that commitment includes strategic investments to benefit both our members and the banking industry as a whole,” said ABA President and CEO Rob Nichols. “Monit and Posh represent tangible solutions that align with where the market is heading and are already used by several of our members.”

Needham, Mass.-based Monit was started through Eastern Bank’s technology incubator. It is a two-sided platform that offers small businesses and bankers insight into small business clients’ financial condition and needs, according to the ABA. Read more

 

Sept. 20, 2024 News Stories

Oldest Credit Union in U.S. Keeps Battling Big Banks, Scamsters

Chana Schoenberger, American Banker

People in New Hampshire’s largest city have the same financial worries they’ve faced for decades: buying a car, saving for a house, paying for their kids’ education. Local credit union CEO Ken Senus, who runs St. Mary’s Bank, has different concerns.

St. Mary’s already knows how to serve members. What it’s trying to do now is fight for their attention and business, while fending off the scams that plague credit unions and banks across the country. As banks get bigger and flex their marketing budgets, credit unions are a harder sell, even in the community where St. Mary’s, the oldest credit union in the U.S., started long enough ago that the term “credit union” wasn’t yet in use.

A major structural challenge credit unions face is that they’re promising a better level of service, when younger people, whom they need to grow their membership ranks, prefer do-it-yourself banking, said Mary Beth Sullivan, managing partner at Capital Performance Group, a financial-institution management consulting firm based in Washington, D.C. Read more

Vermont Dept. of Financial Regulation Seeks Comment on Enhancing Virtual Currency Kiosk Regulatory Oversight to Reduce Their Use in Illicit Activities

The Department of Financial Regulation seeks input from individuals, businesses, nonprofits and others specifically regarding their concerns, interests, insights and experiences with virtual currency kiosks.

Background
On or before January 15, 2025, the Commissioner of Financial Regulation is required to report to the House Committee on Commerce and Economic Development and the Senate Committee on Finance on whether the requirements of 8 V.S.A. § 2577(g) regarding virtual currency kiosks, coupled with relevant federal requirements, are sufficient to protect customers in Vermont from fraudulent activity. Read more

Better Rates and Service Mean Extra Costs for Credit Unions

Trace Jerrett, CreditUnions.com

The average bank in the United States holds $5.2 billion in assets, compared with $503.0 million for the average credit union. With such great scale, banks have the efficiency and flexibility to reach more customers; they also have opportunities to diversify revenue streams in ways that credit unions cannot, often leading to greater net income generation.

However, credit unions do have a powerful advantage over banks: their mission of helping people over profit. In difficult economic times, it is especially important for credit unions to deliver this message to those who need to hear it. In good times, most Americans see banks and credit unions as synonymous providers of financial services. It is in times of struggle that credit unions truly earn their charter. Read more

NASCUS Announces 2024-25 Board and Advisory Council Election Results

In August, the National Association of State Credit Union Supervisors (NASCUS) conducted its annual elections for its Regulator Board and Credit Union Advisory Council. Members of the NASCUS Regulator Board are elected by NASCUS regulator members, comprised of all state credit union regulatory agencies across the nation. Read more

VIDEO: Why Does It Appear ‘Easier’ to Merge Credit Unions Than to Launch One?

CU Broadcast

If you missed it live, Zest AI’s Denise Wymore and Your Credit Union Partner’s Tom Sakash joined us on the show to provide a CU De Novo Collective update — and asking: Why does it appear “easier” to merge credit unions than to launch one?

With more and more credit unions being merged but very few launched (145 lost to mergers to 4 launched in 2023), Tom and Denise are on a mission to make the process of launching new credit unions more efficient and attractive than ever. According to Tom, there are more than 60 new credit union proposals out there right now.

That said, they shared some hurdles de novo credit unions experience getting started but provided ideas on how to mitigate those challenges so more new credit unions can launch. Watch the video here

Sept. 13, 2024 News Stories

‘We’ve Only Just Begun’ NCUA Chairman Todd Harper Shares the Keys to a Successful Future

Todd Harper, NCUA/CU Times

The Federal Credit Union System turns 90, and NCUA’s Todd Harper shares four keys to CU success for the next 90 years.

Ninety years ago, President Franklin Delano Roosevelt signed the Federal Credit Union Act, establishing the federal system of credit unions and increasing access to affordable financial products and services for more Americans. Since then, the system has evolved considerably from one in which credit unions offered basic savings accounts, appliance loans, and short-term credit to one that provides long-term share certificates, money market accounts, auto loans, mortgages, credit cards, commercial lending, and private student loans.

So, as we look ahead to the next 90 years and what the credit union system can become, we should mind the lessons of the immortal lyrics of the Carpenters, “We’ve only just begun.”

Today’s credit union system is thriving, and we at the NCUA need to make it even stronger and more resilient. With the financial services marketplace ever evolving, the system must continue to innovate and focus on the needs of its members, especially those of modest means. Credit unions also need to embrace transparency, fairness, vigilance, and foresight to remain successful in the years ahead.

Transparency
Transparency is the sunshine that better protects credit union members and the system, feeds efficiency, saves time, and leads to better decision-making. When credit unions and their members have good data and information, they can make better decisions, benchmark, and set themselves up for success.

In the spirit of transparency, the NCUA is developing a proposed rule that would require federal credit unions to publicly disclose information about executive compensation. All federal credit union member-owners deserve to know what their credit union leadership is paid, just like what state-chartered credit unions provide to their members and public companies disclose to their shareholders about executive pay. In addition, the NCUA’s recent requirement that credit unions with more than $1 billion in assets report income from overdraft and non-sufficient funds fees on their Call Reports provides transparency into how credit unions operate and compare with their peers. Read more

Wisconsin DFI: State-Chartered Credit Unions Report Sound Second-Quarter Financial Performance

Wisconsin’s 107 state-chartered credit unions continue to exhibit sound financial performance as of June 30, 2024, according to data released today by the Wisconsin Department of Financial Institutions (DFI).

At the end of the second quarter, total assets for Wisconsin’s state-chartered credit unions rose to $65.7 billion. This is an increase of $1.6 billion since year-end 2023. Over the same time period, loans outstanding grew by $570 million, and shares and deposits rose $1.04 billion. This resulted in a decrease to the loan-to-share ratio from 92.40% at year-end 2023 to 91.69%.

In the six months ending on June 30, 2024:

  • Net worth to assets increased to 10.55%;
  • Delinquent loan to total loan ratio was 0.80%, an increase from the year-end ratio of 0.79%;
  • Net income was strong at over $210.5 million, 0.65% return on average assets; and
  • Growth ratios were all positive.

“The financial indicators for Wisconsin’s state-chartered credit unions through mid-year are strong with solid net worth, strong growth in assets, and marginal loan growth. Higher interest rates have slowed lending, but loan to share ratios continue to be strong,” said DFI Secretary Cheryll Olson-Collins. “Overall, Wisconsin’s state-chartered credit unions continue to be financially stable with a positive outlook, and they continue to provide the financial services needed by their members.”

To learn more, read the DFI’s Office of Credit Unions’ 2024 Mid-Year Financial Bulletin

Illinois & New Jersey Credit Unions Rethink Credit Card Rewards

How credit card reward programs drive business and loyalty at Alliant and Affinity credit unions.

Marc Rapport, CreditUnions.com

Top-Level Takeaways

  • Credit unions like Alliant and Affinity are leveraging straightforward, easy-to-use rewards programs that align with members’ needs, leading to deeper engagement and higher member satisfaction.
  • By minimizing costs and focusing on digital innovation, credit unions can offer competitive rewards without annual fees, even as they navigate regulatory pressures and a competitive market.

Credit card rewards programs are more popular than ever. According to a recent Ipsos Consumer Tracker survey, nearly three in four Americans have a credit card that offers rewards and two-thirds of those cardholders prefer to use their rewards-earning cards, primarily due to the points they accumulate, the May report found. Furthermore, 35% of cardholders believe they spend more because of the rewards, and 37% say they would reduce their credit card spending if these benefits disappeared.

The effect of rewards programs on spending is clear, but credit unions have some room to blaze their own trail when it comes to achieving — and sustaining — program success. Read more

In Michigan: What Makes One Credit Union a High Performer 

Ray Birch, CU Today

ELGA Credit Union Mobile - Apps on Google PlayOne credit union ranked highly for performance and which has an eye-opening 1.89% ROAA, says its formula for success can survive even if some deep fee income cuts should lie ahead courtesy of the CFPB. As CUToday.info reported, the $1.529-billion ELGA Credit Union is ranked No. 1 on Forbes’ list of America’s BEST-IN-STATE Credit Unions for 2024.

ELGA EVP David Brandt told CUToday.info the award is largely based on the quality of financial advice, financial services fee structures, ease of navigating through the organization—digital and in-person—and the trust the credit union inspires.

“I think we won because we deliver a great experience to our members,” Brandt said, noting the survey covered primarily 2023. “In our measurements, we’re always trying to find out how we’re doing for our members. How can we do better? With over 5,000 surveys completed in 2023, we had a Net Promoter Score of 86.56.”

Bain & Company originated the Net Promoter Score, and any score over 50 is considered excellent and anything over 80 is considered world class. Read more

Sept. 6, 2024 News Stories

NYDFS Imposes $35 Million Fine on Nordea Bank for Alleged AML Failures Following Panama Papers Revelations

Kelly A. Lenahan-Pfahlert, Money Laundering News

On August 27, 2024, the New York State Department of Financial Services (“NYDFS”) announced a consent order involving a $35 million settlement with Nordea Bank Abp (“Nordea”) for alleged significant failures related to anti-money laundering (“AML”) compliance. Nordea, headquartered in Helsinki, Finland, operates globally, including through a licensed branch in New York, which has its own AML and transaction monitoring requirements.

The enforcement action, which followed revelations from the Panama Papers leak, found that Nordea allegedly failed to conduct proper due diligence on high-risk correspondent banking relationships and maintained inadequate AML controls. According to the NYDFS, the Panama Papers implicated Nordea in aiding clients in establishing offshore shell companies in order to facilitate illicit activities.

The consent order alleges that Nordea violated New York law by allowing compliance failures in its AML program and procedures to persist. Meanwhile, Danish officials recently charged Nordea with repeatedly violating Denmark’s anti-money laundering act between 2012 and 2015, thereby exposing Nordea, potentially, to extremely significant fines. As we will discuss, although the consent order implicates many different issues, the NYDFS enforcement action represents, in part, the latest chapter in the continued fall-out from the massive AML scandal involving Dankse Bank. The consent order also highlights, once again, the particular risks posed by correspondent banking relationships, on which we repeatedly have blogged (for example, here, here, and here). Read more

Credit Unions Rarely Engage in BaaS. North Bay is an Exception

Miriam Cross, American Banker

North Bay Credit Union is an outlier in the banking-as-a-service space.

The flurry of activity in BaaS is almost entirely restricted to community banks partnering with fintechs and other nonbanks to underpin their financial offerings. But the $121 million-asset North Bay is one of the few credit unions to participate as well, and one of the few to speak about it publicly.

“The vast majority don’t do it and legally, it’s challenging,” said Greg Mesack, senior vice president of advocacy at America’s Credit Unions, a credit union trade group.

The biggest hurdle for credit unions to overcome is the field of membership requirement, which dictates which subsets of the population can be a member of the credit union, based on their location, employer, association membership or other factors.

Beyond that, as not-for-profit institutions, this kind of fintech partnership is not typically considered to be part of the credit union ethos. It is also an expensive undertaking to get right, from building or buying the necessary technology, such as application programming interfaces or anti-money-laundering monitoring systems, to hiring staff that specialize in this niche. Read more

CU Tax Exemption, Acquisition of Banks Subject of CNBC Report

CU Today

Credit union acquisitions of banks, and more broadly, the CU tax exemption, were the subject of a segment on the CNBC program “Power Lunch.”

Introduced by host Brian Sullivan who said, “We begin with the intriguing story of the rise of the credit union,” before giving way to Business News Senior Banking and Finance Reporter Leslie Picker, who introduced the issue by saying, “There is this kind of under the radar evolution taking place… Credit unions were established about 150 years ago in rural America to create community based lending for those without traditional access to banking. Throughout the last century credit unions have operated as nonprofits exempt from most taxes. However, recently, they’ve scaled to the point where they are buying billions in assets from community banks, a record trend that’s become controversial. Critics say credit unions’ tax exempt status gives them an M&A advantage and their scale no longer justifies the $21 billion in annual taxpayer subsidies they enjoy.”

Critic of CUs Featured
The segment then turned to Scott Hodge, senior tax policy advisor with the Tax Foundation, who has been a frequent critic of the credit union tax exemption.

“There’s just something wrong with what are essentially nonprofit organizations buying taxpaying commercial and profit-making organizations,” said Hodge. “I think it’s time to reevaluate the tax exemption that the credit unions now have because they’re no longer these…membership-serving organizations. They’re growing and expanding and they’re essentially commercial banks masquerading as nonprofits.” Read more

Southeast Credit Union Trade Groups Announce Merger Plans

Tyfone

Not only are credit unions merging with increasing frequency, the leagues and associations that serve them are joining forces too.

In the most recent example, the League of Southeastern Credit Unions & Affiliates has announced its plans to combine with the Virginia Credit Union League.

In a press release Tuesday, the groups said the collaboration will create a more diverse and powerful network of state and federal lawmakers and regulators, increasing their ability to drive positive change.

If the deal is approved, the new organization would represent 386 credit unions and 31.5 million members across Virginia, Alabama, Georgia and Florida.

“The tried-and-tested advocacy process will continue to provide credit unions with clear control over state-level and local congressional delegation advocacy strategies. Together, the League and credit unions will deepen engagement and increase impact across the entire footprint,” the organizations said in a statement.

In terms of timing, the groups said only that the process is underway and that they will keep impacted credit unions apprised of key developments as the merger progresses. Read more

Aug. 29, 2024 News Stories

‘No Joy Below $10 Billion’ Leading to More Credit Union Tie Ups

Tyfone

A merger of equals recently announced in Florida could set the stage for more credit union M&A.

The current operating environment may be driving a growing number of credit unions to consider mergers. That may be especially true for institutions below $10 billion in assets, which don’t benefit from the economies of scale as larger credit unions do. “There is no joy below $10 billion,” a veteran M&A advisor told Tyfone. “I think you’re going to see more [M&A] because at every board meeting I’m doing they want to know about mergers,” he said.

Among the latest examples:

Launch Credit Union in Merritt Island, Florida, said it plans to merge with Community Credit Union of Florida in Rockledge. The deal is as close to a true merger of equals as possible, as both institutions have roughly $1.4 billion of assets. The transaction is expected to be finalized by the middle of 2025. The resulting credit union would have more than 143,000 members with 22 branches throughout Brevard and Volusia counties.

“Our combined resources and shared commitment enable us to offer enhanced products and services to our members while maintaining the high level of personalized service our members have come to expect,” said Joe Mirachi, Launch CU’s president and CEO, in a press release.

Mirachi will continue as the combined credit union’s president and CEO, and Laurie Cappelli, Community Credit Union’s chief executive, will move forward with her planned retirement and serve as a consultant as needed through the system integration. The M&A advisor said that in the past, credit unions wanted to discuss mergers but wouldn’t admit it. Now board members are talking more openly. Read more

Spotlighting DFI: How to Identify, Prevent and Report Financial Fraud

Charlie Clark is Washington State Department of Financial Institutions (DFI). They are launching an ad campaign to help us identify, prvent and report financial fraud. Financial fraud steals more than money — it robs hundreds of thousands of people of their hopes, dreams, and futures every year. With more than $10 billion in reported losses in 2023 alone, it’s time to take a stand against scams.

At the Washington State Department of Financial Institutions, we believe that education and awareness are the most powerful tools in preventing financial fraud. By learning to identify common scams and knowing what steps to take, you can prevent scammers from stealing money from you, your family, and your community.

Northwest FCU in Stadium Naming Rights Deal with NFL’s Commanders; Bankers Immediately Throw Flag, Urge Congress to Act

CU Today

Northwest Credit Union said it has entered into a multi-year naming rights deal for the home stadium of the NFL’s Washington Commanders, and the banking industry needed less time than the two minute warning to blast the sponsorship and tell Congress it’s another reason to revoke the CU tax exemption.

The team’s home, formerly known as FedEx Field, will now be known as Commanders Field at Northwest Stadium and marks the first credit union naming rights deal in NFL history. The naming rights to the stadium will cost $8 million annually, according to several reports. In 2023, the $4.55-billion Northwest FCU, which is based in Herndon, Va., became the Commanders’ Official Credit Union Partner. The new partnership vastly expands the credit union’s presence with the team.

Press Conference Scheduled
On Sept. 15th, the two organizations said they will officially kick off the extension and expansion of their existing partnership through a joint press conference at the stadium before the Commanders’ home opener. Read more

FBI, Sarasota Deputies Warn of Fraud Scheme Targeting Senior Citizens

Garrett Phillips, WFLA

A fraud scheme targeting senior citizens is on the rise in Sarasota County, the FBI and Sarasota County Sheriff’s Office warned in a joint statement Tuesday.

The scammers use Tech Support and Government Impersonation scams to identify victims, then instruct those victims to liquidate assets into cash and/or buy gold, silver, and other precious metals.

1 dead after train, pickup collide near Lakeland

The victims are then instructed to meet couriers in person to hand over their cash or metals for safeguarding in a protected account on their behalf. Officials say the victims never heard from the scammers again.

“We’ve had victims report losses in excess of $300,000,” FBI Tampa Field Office Special Agent in Charge Matthew Fodor said in a statement. “These criminals follow a well-rehearsed script and are skilled at pressure tactics. Your best defense is to hang up on the scammers, never click on suspicious links, and report to law enforcement immediately.” Read more 

Aug. 23, 2024 News Stories

Inside The Battle Over Cannabis Legalization in Florida

Will Yakowicz, Forbes

With billions of dollars at stake, the Sunshine State will decide whether to legalize adult-use marijuana in November. But the ballot measure has some powerful enemies—including Governor DeSantis and a hedge fund billionaire. Here’s who could tip the scales either way.

This November, when voters decide who will become the next president of the United States, Floridians will also have the chance to vote on whether to legalize adult-use cannabis. If the Sunshine State votes “yes” on Amendment 3, it will become the 25th state in the U.S. to legalize recreational use, and one of only 14 Republican ones. If the measure passes, Florida would become the first red state in the American South to legalize recreational use.

Kim Rivers, the CEO of Tallahassee-based Trulieve, the state’s largest cannabis company with 143 medical marijuana dispensaries across the state, believes the importance of Florida passing adult-use cannot be overstated. “This is a pivotal moment in the trajectory of cannabis and ending prohibition,” Rivers tells Forbes. “We have an opportunity here to make a meaningful impact on the national conversation. Florida would be a very big domino to fall.”

With only 12 weeks before Election Day and billions of dollars at stake, the fight to legalize adult-use cannabis in Florida is too close to call. Home to the country’s largest medical marijuana market, which now boasts $2 billion in annual sales, if the ballot measure passes, Florida’s legal cannabis market could bloom into a $6 billion industry (annual sales) by 2026, according to cannabis data firm Headset. Read more 

DCUC Flags Concerns Over ‘Protecting Consumers from Payment Scams Act’

CU Today

The Defense Credit Union Council has sent a letter to Sens. Richard Blumenthal (R-CT) and Elizabeth Warren (D-MA) expressing opposition to the Protecting Consumers from Payment Scams Act, which if enacted would expand the scope of the Electronic Fund Transfer Act (EFTA).

The DCUC said it has “significant concerns” about the potential impacts of the proposed changes, arguing expansion of EFTA could “hinder credit unions’ ability to offer innovative payment solutions, which are crucial for competing with larger financial institutions and meeting the needs of service members and their families.”

The Defense Council told Congress its member CUs are committed to consumer protection and fraud prevention and to investing in advanced security technologies, but that extending liability under EFTA for fraudulently induced transfers could create “financial challenges for smaller credit unions and may not effectively address the complex nature of modern scams.”

Instead of enhancing protection, the legislation may inadvertently increase consumer risk by failing to address the sophisticated methods employed by fraudsters, DCUC wrote. Read more

Bank and Credit Union Groups Join Forces to Challenge New Illinois Law Restricting Interchange Fees

The American Bankers Association today joined the Illinois Bankers Association, America’s Credit Unions and the Illinois Credit Union League in filing a complaint in the U.S. District Court for the Northern District of Illinois challenging the Illinois Interchange Fee Prohibition Act (IFPA). The IFPA, which was signed into law on June 7, would ban banks, payment networks and other entities from charging or receiving interchange fees in Illinois on the portion of a debit or credit card transaction attributable to tax or gratuity. The law has been opposed by a number of Illinois business groups. It has also been criticized by the editorial boards of the Chicago Tribune and Crain’s Chicago Business.

In the filing, ABA and the co-plaintiffs argue that if allowed to take effect, IFPA would throw the modern and efficient payment system into chaos and undermine the significant benefits that credit and debit cards provide to consumers and businesses. The filing outlines how the new state law violates multiple federal statutes including the National Bank Act and the Federal Credit Union Act and cannot be enforced against national or state-chartered banks, federal or state savings institutions, federal or state-chartered credit unions, nor their service providers. The plaintiffs will seek a preliminary injunction halting implementation of the new law while the court decides the merits of the case. Read more

Detroit-based Credit Union Names First Female, First African American CEO

Tyfone

Portia Powell replaces the retiring Hank Hubbard, who served as the credit union’s chief executive for 34 years.

One Detroit Credit Union named Portia Powell as its next CEO effective January 2025. Powell will be the first woman and first African American to lead the $64 million-asset credit union in its 90-year history. She will replace Hank Hubbard, who has been the chief executive for the Michigan-based credit union for the past 34 years. Hubbard will continue to serve as CEO until Dec. 31, at which time he will transition into a consulting role for the organization.

“It’s an honor to lead an institution that has been such a vital part of Detroit’s fabric,” Powell said in a press release. “I am committed to building on One Detroit’s strong foundation while innovating to meet the needs of our members in a rapidly changing financial landscape.” Powell has more than two decades of experience in the financial services industry, having held various leadership positions in major financial institutions where she focused on operations, strategic growth and community engagement. Read more

Aug. 16, 2024 News Stories
Washington State Credit Union to Buy Oregon Bank

Gabrielle Saulsbery, Banking Dive

Of the 16 credit union-bank deals announced this year, five have involved financial institutions based in the Evergreen State.

Spokane Teachers Credit Union will acquire Community Bank, a 10-branch bank based in Joseph, Oregon, the institutions announced Tuesday. The 69-year-old bank and its $550 million in assets will join STCU to create a $6.4 billion-asset institution with 49 branches in Washington, Oregon and Idaho.

The transaction is expected to close in early 2025. STCU plans to retain all Community Bank employees if the deal goes through, it said. “As the banking and business environment of our region grows increasingly competitive, this transaction with STCU will ensure expanded product offerings, more locations, and a continued high level of services,” Community Bank CEO Tom Moran said in a prepared statement.

He noted that both institutions “share common core values, with a strong focus on supporting the financial wellbeing of our customers, communities and employees.” STCU CEO Ezra Eckhardt said the deal aligns with the credit union’s focus on rural communities. Read more

California Department of Financial Protection and Innovation: 2024 Report on Banks and Credit Unions Fee Income from NSF and Overdraft Charges

This report fulfills the requirements of SB 1415 (Limón, 2022). SB 1415 requires state-chartered banks and credit unions to “report to the commissioner on the amount of revenue earned from overdraft fees and nonsufficient funds fees collected in the most recently completed calendar year and the percentage of that revenue as a proportion of the net income of the bank or credit union.” State chartered banks and credit unions are required to report this information annually by March 1st. This requirement does not apply to national banks, federal credit unions, or out-of-state banks and credit unions with offices in California.

DFPI is required to publish the data in a report for each state-chartered bank and credit union and make the report available on the Department’s website. This report covers data from the 2023 calendar year. Read more 

CU1 Venturing North of the Arctic Circle

Credit Union 1, Alaska’s only state-chartered credit union, is excited to announce plans to open a location in Kotzebue, Alaska, later this year. This will be the first credit union branch north of the Arctic Circle (as far as we know!).

Located on the edge of the Chukchi Sea in far Northwest Alaska, Kotzebue is an isolated but thriving seaside community. More than 75% of Kotzebue residents are Indigenous people of Inupiat descent, and Alaska Native culture permeates the community. With a population of roughly 3,000 residents, Kotzebue is one of the larger “hub” communities in rural Alaska that provides services to smaller, even more remote villages across the vast state.

Despite its regional stature, Kotzebue, like many rural Alaskan communities, has limited financial service options and access. Currently, only one institution has a physical location there. CU1 is committed to changing that limitation across the state through branch, technology, and service expansions built with Alaskan members in mind. Read more

Clearwater Credit Union Introduces Montana’s First Clean Energy CD

Clearwater Credit Union, Montana’s leading solar loan lender and the second-largest credit union in Montana, is pleased to announce it is launching a new Clean Energy Certificate of Deposit (CD), making it the first financial institution in Montana to offer such a savings product. You can find the press release attached for more information on how Clearwater is helping Montana homeowners and businesses embrace clean energy solutions. Read more 

Corporate Central Proudly Sponsors Tunnel to Towers Run & Walk Event, Honoring Heroes and Supporting Communities

Corporate Central is honored to have been the main sponsor of a recent Tunnel to Towers Run & Walk event, demonstrating commitment to supporting the heroes who have served our nation and our communities. The event, which took place on Saturday, August 3 in Muskego, WI, saw participants from all walks of life come together to honor the sacrifices made by first responders and military personnel in the line of duty. Read more 

 

Aug. 9, 2024 News Stories

Recreational Marijuana Sales in Ohio Can Start Tuesday at Nearly 100 Locations

 Associated Press

Recreational marijuana sales will begin across Ohio on Tuesday when the state issues its first operating certificates.

Nearly 100 medical marijuana dispensaries will be able to begin sales immediately, although it’s not clear how many will be ready to open, the Division of Cannabis Control said Monday.

Many will be ready right away while others could be delayed by staffing or inventory issues. The first round of operation certificates will go to 98 locations, according to the Division of Cannabis Control. Ohio voters last November overwhelmingly approved allowing those over 21 to possess, purchase and grow limited amounts of cannabis for personal use. But recreational sales remained on hold while the state set up a regulated system for legal marijuana purchases and worked out other rules.

The new law allows adults 21 and over to buy and possess up to 2.5 ounces (70 grams) of cannabis and to grow up to six plants per individual or 12 plants per household at home. Legal marijuana purchases will be subject to a 10% tax, with the revenue to be divided between administrative costs, addiction treatment, municipalities with dispensaries, and paying for social equity and jobs programs supporting the cannabis industry itself.

Image previewDebbie Smith Wins the 2024 Renee Sattiewhite Neoteric Changemaker Award

Congratulations to Georgia United Credit Union CEO Debbie Smith who was presented the 2024 Renee Sattiewhite Neoteric Changemaker Award at the 47th CU Leadership Convention in Las Vegas. Honoring individuals who embody perseverance, champion the “people helping people” ethos and drive innovative ideas, this national award celebrates leaders who create impactful programs. The award’s distinctive name reflects its essence: celebrating modern thinkers who promote fresh, new concepts.

The award is named after the CEO and president of the AACUC, Renee Sattiewhite, pictured here with Debbie.

Credit Union Goes Mobile with Branch Expansions

Jim DuPlessis, Credit Union Times

UFCU of Austin, Texas, will be using this mobile branch to reach underbanked communities. Credit/UFCUUFCU rolls out a mobile branch to reach underserved communities in Austin, Texas.

As it opens several brick-and-mortar branches, a Texas credit union is also taking its expansion on the road.

University Federal Credit Union (UFCU) of Austin ($4.1 billion in assets, 384,816 members as of June 30) on Monday rolled out its mobile branch as a way to reach more people in traditionally underbanked communities.

“Working with our community partners, we are committed to improving access to financial services for all Texans,” President/CEO Michael Crowl said. “The UFCU Mobile Branch is a significant step towards addressing the financial barriers traditionally underserved communities face. We appreciate the support and trust of our partners and the community as we embark on this important mission to ensure a thriving Texas includes all Texans.”

A UFCU news release said the mobile branch will help bridge the financial services gap for Texas’ unbanked and underbanked communities, which make up an estimated 24% of Texas households.

UFCU said people without access to a credit union or bank are almost 10 times more likely to use check cashing than banked households. The UFCU Mobile Branch eliminates check-cashing fees while also offering ATM access, account set-up, starter and cashier’s checks, instant-issue debit cards, money orders, fund transfers, loan and credit card applications, loan payments and notary services.

Verity Credit Union in WA to Launch Small Dollar Loan Program with Grant Money

Tyfone

Verity Credit Union in Seattle will use a $383,000 grant from the U.S. Treasury to fund a small-dollar consumer loan program.

Community Development Financial Institutions like Verity can use such programs to expand access to mainstream financial organizations for unbanked and underbanked communities, the $859 million-asset credit union said in a press release Aug. 5.

“This funding will allow us to provide a vital financial lifeline and equip our community with the tools they need to achieve long-term financial stability,” said Verity CEO Tonita Webb in the release.

Verity will offer unsecured loans of up to $2,500, with no prepayment penalty and the opportunity to repay in installments. The initiative builds on Verity’s mission to reduce the generational wealth gap, supporting members in establishing credit and managing their finances effectively. The credit union also offers a range of innovative programs and services, including reduced overdraft fees, bicycle loans, solar loans, no-minimum Certificate of Deposit programs and small business loans.

Webb took the helm of the credit union in 2021 after John Zmolek retired. She was named one of American Banker’s most powerful women in the credit union industry last year. Verity said it is one of the few financial institutions with a Black woman CEO and a leadership team and board that identifies predominantly female

The Treasury said the grant program was launched in 2021 and has awarded $40.2 million to financial institutions thus far.Verity earned $1.5 million through the second quarter of 2024, a 62% increase compared with a year earlier, according to call report data from the National Credit Union Administration.

Nebraska Department of Banking and Finance Statements of Policy on Digital Assets

The NDBF has published Statements of Policy regarding the operations and supervision of charters under the Nebraska Financial Innovation Act (The Act). The Act allows for both independent institutions and departments of existing state-chartered banks to be able to obtain a charter, allowing them to conduct certain activities involving digital assets. These new Statements of Policy, along with the Act, our Rules and Regulations, and our other existing guidance, all provide a legal and operational framework for these charters, along with a set of supervisory expectations for them. All documents are available on our website. The Department is continuing to release and publish information relevant to this space, so bookmark our website and follow us on our social media pages to stay updated.

Aug. 2, 2024 News Stories: Widespread Issues with Shimmers and Skimmers

In GA, New Warning About Credit Card Skimming | What You Need to Know

Rob DiRienzo, Fox5 Atlanta

Police in Henry County have issued an urgent warning to residents regarding incidents at the checkout counter. Investigators report that thieves have been using skimmers to steal credit card information at stores across the county, specifically targeting people who use the magnetic stripe to swipe their cards at the checkout.

Authorities have not disclosed the precise locations of these devices. However, two cybersecurity analysts confirm that this type of scheme is all too common. “They come up, they come out to a Walmart, a Home Depot, Best Buy, someplace that’s big and super busy,” said Peter Tran, a cybercrime analyst for InferSight and a former NCIS Special Agent.

Investigators in Henry County say the thieves have been targeting self-checkout terminals at stores in the county. Tran notes culprits sneak covers onto the card terminals, going unnoticed by most people.

“It listens in for the data, you swipe it, and later at another point, that same individual will come in with a wireless device and be able to bring the data across to a USB thumb drive if they have to,” Tran explained.

Jon Powell, an Atlanta advisor with Moore Colson who’s focused on cybersecurity, noted these devices’ affordability. “You can buy these things, they’re very inexpensive,” said Powell, who is a partner at the Atlanta-based firm Moore Colson, focused on cybersecurity. Read more

CT Residents Warned to Watch Out For ‘Shimming’ Scam When Using Chip Cards

Liz Hardaway, Stamford Advocate

It’s more difficult for scammers to steal information from credit card chips, but it’s not impossible.

The Connecticut Better Business Bureau is warning consumers of a new scamming tactic that steals payment information off of the chip of a credit card. Called “shimming,” the BBB says scammers insert a shim — a paper-thin, card-sized device with an embedded microchip and storage — into the slot where the chip side of a credit card or debit card is placed. When someone inserts their card to pay at a gas pump, ATM or business, the shim copies and saves the payment information.

“Then, scammers return with a special card that collects the stolen information, such as your PIN and card number. They use this information to make purchases with your account information,” the BBB said in an email this week.

Kentucky Authorities Warn of Dangers of Skimming Devices

Investigators are warning shoppers to be vigilant, and if you see anything suspicious, to contact the store manager.

Margaret Vancampen, Gabriel Gonzalez, WHAS

“This scam can happen anywhere, big box stores or mom-and-pop stores,” EPD spokesperson Chris Denham said. Police found items that looked like your normal card readers placed over the pin pads. Denham said it’s easy to mistake the real reader from the fake reader. “It simply lays over the original equipment and as the victim enters their card, their information is compromised,” he said. They suggested using tap to pay instead of swiping or inserting your card as it may prevent the skimmer from accessing your info.

How to protect yourself from skimming
One way is to do a quick scan of the pin pad to make sure it has not been tampered with. If it looks off, ask to use another one. Second is to be weary of non-bank ATM’s. There are ATM’s at grocery stores, banks and bars, so make sure to use a secured ATM like at your bank.

Third, take advantage of mobile banking. This will allow you to insert or tap your card less, causing less exposure to the machines. Lastly, block your pin number when typing so nobody can steal your private information. Denham said there are two things to do if you think your information was stolen: contact your bank to make them aware of the fraud, and contact law enforcement immediately. The sooner they know, the better chance the crime will be solved.

Skimming Devices Found at Northwest Florida Credit Unions — Investigation Underway 

Olivia Wilson, WKRG

Authorities in Northwest Florida are investigating after skimming devices were found inside ATMs at a local credit union. The Santa Rosa County Sheriff’s Office shared in a press release that skimming devices were found in some ATM/LIVE machines at Pen-Air Credit Union on July 30.

Four machines were found to be affected by the devices. Those machines, which were at the following locations, were closed and are scheduled to be replaced. After the skimming devices were discovered, all ATM/LIVE Teller locations were inspected. The release states, “No other machines have security concerns or evidence of skimmers.”

SRCSO said authorities are working to investigate and “ensure those responsible are identified and apprehended.” Officials said both members and non-members of the credit union who use the machines should review their account statements and contact their financial institution if they suspect unauthorized activity on their accounts.

PA Shoppers In At Least 5 Local Communities Targeted by Card Skimmers, Police Say

Pete DeLuca, WPXI-TV

A rash of credit card skimmers has been popping up throughout Allegheny and Westmoreland Counties, the latest being discovered Sunday in Lower Burrell.

Police say the same two men, Thomas Fuchs and Alexandru Dumitrascu, are responsible for trying to steal people’s credit card information at grocery stores in at least five different communities, including Scott Township, Plum Borough, and Lower Burrell.

Plum police say the credit card skimming device was discovered on July 21 when a customer was struggling to get the card reader to work and an employee lifted it up causing the skimmer to fall off.

Investigators believe it was installed on June 27 by Fuchs and Dumitrascu.Plum police filed charges against them on Sunday. “You don’t expect it in your community and I’m glad they caught them,” said shopper Bryan Murray. Police tell Channel 11 that the two men are also facing charges for a similar scheme in Scott Township, Lower Burrell, Penn Hills, and North Huntingdon.

Channel 11 first told you about the pair ten days ago when a skimming device was found at a Shop ’n Save in Scott Township. Lower Burrell Police say a skimmer was discovered Sunday at the Community Supermarket on Leechburg Road that has also been linked to Fuchs and Dumitrascu. “I completely feel bad for folks who fall victim to this,” Murray said.

According to Lower Burrell police, the two men allegedly responsible for all of the skimmers are still in custody at the Allegheny County Jail despite posting bail for their initial charges out of Scott Township. Both men are scheduled to appear in court on their initial charges in Scott Township on Thursday. Download the FREE WPXI News app for breaking news alerts.

July 26, 2024 News Stories

Michigan Cannabis Regulatory Agency Asks for Clearer Guidance on Marijuana Changes

Adrienne Roberts, Detroit Free Press

Michigan’s Cannabis Regulatory Agency on Monday laid out how the Drug Enforcement Administration’s plan to change the classification of marijuana from a Schedule I to a Schedule III drug could benefit Michigan consumers and cannabis companies, from potentially allowing businesses to file for bankruptcy to offering consumers products that meet uniform safety standards.

However, the agency said guidance from the federal government is crucial to understanding how to move forward if cannabis is reclassified as a Schedule III drug.

“Rescheduling marijuana from Schedule I to Schedule III can have profound impacts on both the medical and adult-use markets, potentially transforming how these markets operate and are perceived, but will do little good — and could potentially wreak havoc on Michigan’s existing programs — without clear guidance from all areas of the federal government explaining the effects of rescheduling,” the CRA’s comment said. It was submitted during the public comment period that is part of the DEA’s plan to recategorize marijuana under the Controlled Substances Act. Read more

Credit Union’s Internal Investigation Leads to Employee Grand Theft Charge

Peter Strozniak, CUTimes

Macey Wymore, who allegedly stole more than $63,000 from Idaho Central CU, is expected to appear in court in August.

A former employee who allegedly stole more than $63,000 from the $11 billion Idaho Central Credit Union (ICCU) in Chubbuck planned to steal an additional $23,000 but returned it after learning of an unexpected audit, according to a police probable cause affidavit.

After that audit and an internal investigation led by ICCU Vice President of Branch Performance Josh Ross, Lewistown Police Department investigators arrested Macey L. Wymore, 31, of Clarkston, who has been charged with grand theft. She was released on a $10,000 bond. Wymore is expected to appear in court for a preliminary conference in August, the Nez Perce County Prosecutor’s office said.

ICCU’s internal investigation determined there were shortages of cash from the vault and an electronic dispenser note accepter (EDNA) at the Lewiston branch. The credit union’s investigation included reviewing surveillance footage from inside the branch, reviewing logs from the vault/EDNA machines and interviewing employees.

From December 2023 to June 2024, Wymore allegedly stole $63,400.

“There was video evidence of an additional attempted theft of more than $20,000, however, Wymore returned that cash the following day when she learned of an unexpected audit,” according to the police affidavit. “Wymore volunteered to come to work, despite it not being her regularly scheduled time to work, to assist with the audit. Wymore returned the money during that time.”

The affidavit did not identify Wymore’s job title or her responsibilities at the credit union’s branch. She was fired in June. Read more

WCUC24: How AI Will Make Credit Union Examiner Meetings More Efficient…

CUbroadcast


Brett Wooden, FI Software Strategiest at Buildable, and Miles Oliveira, Sales Director at Buildable, stopped by the show to share how AI can help, among a myriad of things, credit union examiner meetings become incredibly more efficient for both the credit union and the examiner.

Both Brett and Miles talked about how Buildable’s AI Knowledge Base and AI Vendor Management Software can help credit unions dive into this space with full awareness of its benefits and capabilities — and how it can practically be used at credit unions. In addition, they addressed how developing this software with small credit unions can make them stronger and more capable of serving members in a digital age.

Credit Union Helps Members Expand Solar Energy

Jim DuPlessis, CUTimes

Clearwater FCU offers a CD that funds clean energy projects for its western Montana members.

A Montana credit union is offering members a way to help expand the clean energy network in their area even if they don’t own the roof over their head to place a solar panel.

Clearwater Federal Credit Union of Missoula, Mont. ($1.1 billion in assets, 60,922 members) on July 18 began offering a Clean Energy Certificate of Deposit. The credit union’s news release said its 24-month CD provides its western Montana members with rates it describes as “market competitive,” while restricting the funds provided by the member to solar loans and similar projects.

Clearwater designates the pooled deposits to fund loans for clean energy initiatives it said are intended to help Montana homeowners and businesses improve energy efficiency, reduce environmental impact and help build a clean energy economy. Read more

July 19, 2024 News Stories

DFI Launches Statewide AD Campaign to Highlight How to Identify, Prevent, and Report Financial Fraud in Washington State

“$10 Billion Reasons” ad campaign created in response to uptick in fraud complaints and FTC data indicating Americans lost $10 Billion to financial fraud in 2023

The Washington State Department of Financial Institutions (DFI) launches a statewide advertising campaign – “$10 Billion Reasons” – to encourage people to learn how to identify, prevent and report financial fraud. According to the Federal Trade Commission, consumers reported losing more than $10 billion dollars to fraud in 2023. Consumers reported losing more money to investment scams — more than 4.6 billion — more than any other category of fraud.

In looking at the FTC data), it’s clear that no demographic is immune. This is why DFI’s goal is to reach multiple demographics with the “$10 Billion Reasons” campaign.

“Using a variety of media, including billboards, movie theater screen ads, radio, streaming, social media, print media, online news sites, and more – we are hoping to drive home the message that fraud is expensive and stress the importance of learning how to identify, prevent and report fraud to DFI,” DFI Director Charlie Clark said.

All advertisements will drive viewers/listeners to a landing page on DFI’s website – www.dfi.wa.gov/10B. This landing page will lead viewers to detailed information about the many forms of financial fraud (www.dfi.wa.gov/10B/Identify) – including what scams target which demographics most often, how to identify fraud, how to prevent fraud (www.dfi.wa.gov/10B/prevent) and how to report it (https://www.dfi.wa.gov/10B/Report). The web pages will have details on a variety of emerging fraud forms – including pig butchering, romance scams, crypto scams, investment scams, and more. Read more 

Vibrant Credit Union in Illinois Explores a Blockchain-Based Future

Frank Gargano, American Banker

Vibrant Credit Union in Moline, Illinois, is working with the San Francisco-based distributed ledger technology company Metallicus to explore how it can adopt the firm’s products and learn more about use cases throughout the financial services industry.

Interest in distributed ledgers and the digital assets often supported by the technology has waxed and waned over the past decade, before the highly publicized fall from grace of Sam Bankman-Fried, co-founder of the now-defunct cryptocurrency exchange FTX, saw many tech-forward executives hold fast or retreat. But as bank and credit union regulators seek to regain lost ground, leaders of financial institutions are renewing their interest in DLT-powered products and the firms that develop them.

Toward the end of 2023 and into this year, Metallicus developed research agreements with individual financial institutions seeking to learn more about distributed ledgers and built integrations into core providers like Jack Henry for ease of adoption. Now, the firm hopes to capitalize on this work through the launch of a new collaborative effort. Read more

International Credit Union (ICU) Day® 2024 to Focus on ‘One World Through Cooperative Finance’

World Council of Credit Unions (WOCCU) and Worldwide Foundation for Credit Unions (WFCU) are excited to announce “One World Through Cooperative Finance” as the theme for the 76th anniversary of International Credit Union (ICU) Day® on Thursday, October 17, 2024.

“At a time in our history when we seem increasingly divided, we hope our credit unions use the ICU Day 2024 theme to show how our movement brings people closer together through democratic, member-owned financial institutions that put people over profit,” said Thomas Belekevich, WOCCU Director of Member Services.

More than 82,000 credit unions and other cooperative financial institutions bring financial inclusion and a promising future to more than 403 million members worldwide. Since the first celebration in 1948, ICU Day is a chance to spotlight and celebrate our achievements as a global movement. Read more

MSUFCU Annual Kids Day Provides Fun and Financial Education

MSU Federal Credit Union (MSUFCU) hosted its annual Kids’ Day event, welcoming more than 1,000 community members to its headquarters campus in East Lansing on Saturday, June 29, 2024, for several hours of fun and financial education.

The three-hour event featured engaging games, interactive exhibits, and educational booths covering topics such as saving, budgeting, and the importance of responsible spending. Experts from MSUFCU were on hand to guide children through these interactive activities, ensuring they left with practical knowledge to help navigate their financial futures.

There was no shortage of energy and excitement as guests also enjoyed sweet and savory treats including Hungry Howie’s Pizza, Cravings Gourmet Popcorn, cotton candy, and frozen treats. Music Unlimited provided music. Entertainment consisted of giant inflatables, lawn games, balloon animals, glitter tattoos, a magician, a bubble garden, STEM activities, Touch-a-Truck, and more. Read more

July 12, 2024 News Stories

Florida’s New Anti-ESG Law Tees Up Fight with Federal Bank Regulators

Christopher Buchanan, American Banker

A new Florida law provides an avenue of recourse for bank customers who believe they were denied financial services on the basis of their political opinions, religious beliefs, lawful ownership of guns or involvement in fossil fuel-based energy production.

The law, which covers both state-chartered and federally chartered financial institutions operating in the Sunshine State, sets up a potential legal clash over state and federal regulatory authorities. It is part of a broader backlash in red states to corporations’ attention to environmental, social and governance matters.

Under the law, consumers can submit a claim with the Florida Office of Financial Regulation concerning a canceled account or loan denial. The financial institution will then have 90 days to submit a response, including information about any alleged suspicious activity by the customer. The Office of Financial Regulation will investigate the claim.

Banks will also be required to submit an annual attestation of their compliance with the new law, which, if violated, could result in a penalty of perjury.

Credit Union CEO to Testify at House Financial Services Subcommittee Field Hearing

CUToday

thumbnail_HarbinKaren Harbin, president/CEO of Commonwealth Credit Union, is scheduled to testify Friday at a House Financial Services subcommittee field hearing on the use of fintech to increase access to financial services.

Harbin, who also serves as board secretary on America’s Credit Unions transition board secretary, will testify at the field hearing in Lexington, Ky. Commonwealth CU is headquartered approximately 25 miles away in Frankfort, Ky.

The hearing will be live streamed on the House Financial Services Committee’s website starting at 10 a.m. Eastern.

Harbin previously testified before the subcommittee in March on how overregulation is affecting credit unions’ ability to offer safe and affordable financial services.

Illinois & Michigan Leagues Announce Retirements, New Leaders

Peter Strozniak, Credit Union Times

Libby Calderone will become the next president/CEO of the Illinois Credit Union League and its service corporation Envisant in Naperville on Jan. 1, 2025. She will succeed current President/CEO Tom Kane who plans to retire at the end of the year.

“Today’s leadership announcement is the culmination of a successful planning process the Boards, Tom, and Libby have worked on together for the past 2 years,” ICUL and Evisant Board Chair Joseph Kregul said in a prepared statement released last week. ” Kregul, president/CEO of the $457 million HealthCare Associates Credit Union in Naperville, also said Kane has agreed to stay on the league’s payroll as a part-time advisor.

In Michigan, Patty Corkery began her tenure as joint CEO of the Michigan Credit Union League and its CUSO, CUSG, last week. She succeeded Dave Adams who retired after 27 years of service.

As the president/CEO of the Michigan Credit union League, Corkery also served as a CUSG board member since 2021. Before joining the league, Corkery worked for 25 years as a lawyer serving the credit union industry.

“We couldn’t be happier about both CUSG and MCUL being led by Patty. She is a passionate and skilled leader who is ready for the great opportunities that lie ahead,” MCUL Board Chair Dean Trudeau (president/CEO of the $423 million Public Service Credit Union in Romulus) and CUSG Board Chair Jackie Buchanan (president/CEO of the $5.1 billion Genisys Credit Union in Auburn Hills), said in a prepared statement.

Coastal Credit Union Foundation and Carolinas Credit Union Foundation Award Scholarship Funds to Eleven Students

The Coastal Credit Union Foundation, in partnership with Carolinas Credit Union Foundation, is proud to announce eleven recipients of the Credit Union Scholarship Program, totaling $33,000 awarded in scholarship funds. All scholarships are merit based, with three being larger amounts based on financial needs.

Tuition costs are rising at both public and private universities and colleges. Coastal and its Foundation are committed to helping students financially through the Carolinas Credit Union Foundation Scholarship Fund, which oversees scholarships for several credit unions throughout the Carolinas.

June 28, 2024 News Stories

Raymond Dorado Appointed to FFIEC State Liaison Committee  

Raymond J. Dorado has been appointed to the Federal Financial Institutions Examination Council’s (FFIEC) State Liaison Committee (SLC). Dorado was designated by the National Association of State Credit Union Supervisors (NASCUS) to complete the remainder of the two-year term left vacant with the retirement of Deputy Superintendent of the Community and Regional Banks Unit, Yolanda Ford. Dorado’s partial term on the SLC will expire on March 31, 2025.

Dorado currently serves as Senior Deputy Superintendent for the Banking Division at the New York State Department of Financial Services (DFS). Prior to joining DFS, Dorado was Executive Vice President & Deputy General Counsel – Commercial Banking and Head of the Enterprise Bank Regulatory group at Citizens Financial Group, where he led teams of lawyers advising the bank and providing strategic counsel on U.S. banking laws and regulations.

Prior to that role, Dorado was Executive Vice President and Senior Policy and Planning Advisor to the Investment Services division of BNY Mellon, responsible for global strategic business initiatives and navigating potential risks in implementation. Before those roles, Dorado was Executive Vice President and Deputy General Counsel of BNY Mellon, and legal advisor to the Risk Committee of BNY Mellon’s Board of Directors. Read more

America’s Best Credit Unions in Each State

Rachel Rabkin Peachman, Forbes

Technology has been both a blessing and a curse for the nation’s credit unions, which are defined as community-centered financial nonprofits in which each member is a part owner. While digital advances have made managing one’s finances more convenient—with tools that enable customers to handle tasks remotely, such as depositing checks through an app, transferring funds online, and receiving answers to questions via text—these tech innovations have also opened up the doors to digital fraud. “Unfortunately, financial institutions and their customers are commonly targeted by scammers,” says Donna Bland, CEO of California-based Golden 1 Credit Union.

The best credit unions, however, are addressing these risks head-on. Golden 1, in fact, is using AI to spot identity theft and offering customers educational programs to help them defend against fraud. Still, it’s not easy for consumers to assess which organizations they can trust with their financial wellbeing. So Forbes has made that task a little easier for consumers by ranking the Best Credit Unions In Each State 2024.

For this seventh annual ranking, Forbes partnered once again with market research firm Statista to survey approximately 26,000 U.S. residents. Participants were asked to name all the banks and credit unions where they currently have—and previously had—a checking or savings account, and to identify financial institutions they know through the experiences of friends and family. Read more

Colorado Credit Union President and CEO Appointed Chairman of State of Colorado Division of Financial Services Board

Colorado Credit Union is pleased to announce that our President and CEO, Mike Williams, has been appointed Chairman of the State of Colorado Division of Financial Services Board for a three-year term. Board appointments are made by gubernatorial appointment, with the chair position determined through board elections. This reflects Williams’ substantial expertise and dedication to the financial services industry in Colorado.

Williams has served on the State of Colorado Division of Financial Services Board since August 2017. His leadership and dedication have helped guide the board through numerous regulatory and economic challenges.

The Division of Financial Services is a key regulatory entity under the Department of Regulatory Agencies (DORA), responsible for overseeing state-chartered financial institutions, including credit unions and savings and loan associations.

For more information about the State of Colorado Division of Financial Services and its role within DORA, please visit financialservices.colorado.gov.

Celebrating a Century of Community: tnConnect Credit Union Marks 100th Anniversary

TNConnect CU LogotnConnect Credit Union proudly announces its centennial milestone, marking 100 years of service to the Knoxville community. Established on June 17, 1924, tnConnect has been a pillar of financial stability and community support, embodying its commitment to members’ financial well-being and local initiatives.

On June 17, 1924, 7 post office employees each deposited $5 in a cigar box which was kept at the downtown Knoxville Post Office. This was the beginning of Knoxville Federal Employees Credit Union. The credit union has evolved with their membership through the years to become the tnConnect Credit Union of today.

Since its inception, tnConnect Credit Union has progressed from a modest community institution to a leading financial partner for individuals and businesses alike. Throughout its journey, tnConnect has remained steadfast in its dedication to providing personalized financial solutions, fostering lasting relationships, and investing in the communities it serves.