Volume 27, Number 18                            September 30, 2007

HEADLINE NEWS

Credit Union Day Just Three Weeks Away

   

     Held on the third Thursday of October, International Credit Union Day© (ICU Day) is a day designed to educate and promote the credit union movement. With less than one month until October 18, the time has never been better to start preparing ideas and ways to implement them to demonstrate how you and your credit union reflect this year’s theme of “Together We’re Better™.” Here are some celebration ideas:

Plan a festive week in your CU
•    Hold an open house at the CU and branch offices. Conduct tours and serve refreshments.
•    Sponsor a children’s drawing contest.
•    Invite your elected officials to a “Meet the Members” day.
•    Hold a “guest” day at the CU where members can bring guests for refreshments and to learn more about credit unions.
Product and service promotions
•    Offer loans or new share draft accounts for the same fees that the CU charged the year it opened.
Focus on education
•    Offer a series of lectures on basic finance in the evenings or over the lunch hour. Topics can include managing a checking account, building a good credit rating, shopping for a mortgage, handling credit cards, and saving for college.
•    Teach a basic money management class at a local high school. You can get free NEFE education materials through Alice Smith at the League.
Focus on the credit union difference
•    Sponsor an essay or art contest for young members or your entire membership. A short essay (100 words or less) about why the credit union is special would be appropriate. Publish the winning entries in your newsletter.
     To find more suggestions on how to celebrate, go to www.buy.cuna.org and enter “ICUday” in the search box. Every CU in Delaware can do something to join the celebration – share your successes with the League.

Report and Remittance of Unclaimed Property Due November 10
     All credit unions are required to report to the Delaware State Escheator at the Bureau of Unclaimed Property by November 10, 2007, certain funds that have remained unclaimed for five years (i.e. June 30, 2002). Unclaimed property refers to various types of personal property of Delaware residents that have been abandoned for five years or more, including share and share draft accounts, uncashed share drafts, dividends, etc.
     Every Delaware CU, regardless of whether it holds unclaimed property, must file a copy of Form AP-1 (Report Verification), which provides a summary of the CU’s report and which must be signed and verified by a CU officer. An additional itemized form must be completed if you hold unclaimed property. A preliminary report was due in August, and the final report and remittance of monies in any such accounts are due by the November 10th date. Checks should be made payable to the “Delaware State Escheator” and mailed to P.O. Box 8931, Wilmington, DE 19899.
     Unclaimed property forms and a booklet describing the process for submitting unclaimed property is available from the League or online at http://www.state.de.us/revenue/default.shtml (click on “unclaimed property”).

COMPLIANCE RECAP

Final Deadline for NCUA's Share Insurance Changes: November 23
     As you may recall, the National Credit Union Association (NCUA) made several changes regarding share insurance at credit unions. Make sure you are updated on the most recent information by reading this checklist:

►         Traditional and Roth IRAs and KEOGH retirement accounts at NCUA insured credit unions are now insured up to $250,000, an increase from the previous $100,000 coverage.

►         Credit unions must replace the old version of the official sign with the revised official sign (displayed below) at teller windows and on online banking internet pages where accounts are opened. This has been in effect since May 22, 2007. 

►        By November 23, 2007, credit unions must discontinue use of the old logo in all marketing materials, stationery, etc. Be sure to check print ads that you may have used in the past, as well as your newsletters and website for the new logo. Downloadable versions of the revised logo and sign are available at www.ncua.gov/data/IndexDownloadData.htm.

►        The NCUA shipped an initial supply of signs to each credit union. The new NCUA insurance logo just inserts the phrase "at least."

►         The NCUA revised the "Your Insured Funds" brochure in November 2006. Older versions should be discarded. NCUA rules require that each credit union have the brochure available for consumers.

What Will NCUA Examiners Be Looking for Next?
     NCUA said that vendor due diligence and credit union strategic planning will be the focus of examiners for the next 12 to 18 months.
     For strategic planning, credit unions need to expand beyond day-to-day matters and look into the future at issues such as membership growth and maintaining stability, safety and soundness in a changing economy.*
     In response to questions whether examiners are being trained in how to evaluate vendor due diligence reviews, NCUA said that there has been dialogue between the regions on problems they have seen and how to evaluate credit unions’ efforts to review vendors. NCUA may update its information in this area. Small credit unions can benefit from sharing information about vendor due diligence reviews with other credit unions.
     *For information on setting up a strategic planning session for your credit union, contact Jane Bailey at the League office or email her at jane@dcul.org.

Can Credit Unions Charge a Fee for Paper Statements?
     In an effort to encourage members to receive electronic statements, many credit unions have considered charging members a fee for sending paper statements. Does this violate any regulations?
     Although there are no specific federal regulations that prohibit the practice, there are other issues credit unions should consider before implementing a fee for paper statements:
•    The potential for a disparate impact on certain members that do not have electronic access; and
•    Negative reaction from members, especially seniors and lower-income people who may not own computers, as well as those who simply prefer receiving statements in paper format.
     Credit unions can encourage members to use electronic statements through the use of incentives. For example, reducing fees (such as discounted bill pay), offering a bonus for signing up for electronic statements, or using other rewards may be a more positive means to encourage participation in opting for electronic statements. (South Carolina Noteworthy – August 20, 2007)

CU SYSTEM NEWS

CU Folder/Booklet Combo for Members Redesigned
     A member folder with attached booklet detailing the credit union story and membership benefits recently underwent a complete redesign and is now available from CUNA.
     The "Your Credit Union: What's in It for You?" (stock number 23085) folder and booklet also features an area to insert business cards and two inside pockets for credit unions to add their list of products and services, brochures, recent financial statements, and the like.
     The 8-page booklet, stitched inside the folder, tells the credit union story through full-color photographs, endorsements, and more. Specifically, the booklet covers:
* Credit union basics,
* Valuable employee benefits,
* Credit union members' bill of rights,
* Low-cost financial services,
* Product/service offerings,
* NCUA and NCUSIF,
* Membership eligibility, and
* Positive credit union comments from the media, legislators, and well-known consumer advocates.
     For more information or to order, go to http://finlit.cuna.org/ and choose the "Statement Stuffers and Drive-Up Envelopes" link, or call (800) 356-8010, press 3, and use the stock number as a reference.

Lots of Change at the 2008 CUNA Governmental Affairs Conference
March 2-6, 2008
Washington, D.C., Convention Center

     It will be the GAC you know, but even better! The GAC’s move to the Washington Convention Center shows that, politically speaking, credit unions have arrived. Plan to bring your board members and management team – the greater our turnout, the greater our impact on Capitol Hill. 
     Every credit union’s voice counts, as reflected in this year’s theme, “Red, White and You.” The speakers, entertainment, and grand new venue promise to take this year’s conference to a whole new level:
•    General Colin Powell: Don’t miss the opening keynote session where Powell will provide leadership strategies to take charge during times of great crisis and change.
•    Chris Matthews:  Always ready to play “hardball,” Matthews will provide his no-nonsense take on the 2008 political scene.
•    America, presented by CUNA Councils. Ride the “Ventura Highway” to the new Sunday kick-off event with a concert featuring America.
     Housing opens on Monday, November 5, 2007, at 2:00 p.m. EST. (Several credit unions have already joined the League’s block.)
     Learn more about the 2008 conference by going to http://www.cuna.org/events/gac08/index.html.

October Is Co-op Month
     As credit unions prepare for Credit Union Day on October 18, they should remember that October also is Co-op Month.
     Celebrated annually since 1930, Co-op Month is an opportunity for cooperatives nationwide to promote their community development, economic development activities, employment and other community contributions. The theme for Co-op Month in 2007 is "Cooperatives: Owned by Our Members, Committed to Our Communities."

DELAWARE NOTES

LOUVIERS FEDERAL CREDIT UNION awarded the first Gladys R. Duling Memorial Scholarship to Victoria Fortunato, who is pursuing advanced education in accounting and finance at the University of Delaware Alfred Lerner College of Business and Economics. The scholarship is dedicated to Gladys Duling, who managed Louviers FCU for 25 years before retiring.

Further showing its commitment to the community, LOUVIERS FCU was a sponsor and participant in the Annual Day for Kids at the 13th Wilmington Riverfest on Saturday, September 15, 2007. The event is a fund-raising opportunity for the Boys and Girls Clubs of Delaware and benefits 30,000 children that the clubs serve in Delaware. Included in the handouts distributed by LFCU staff and members were CUNA’s “Teaching Children About Money” brochures.

EDUCATIONAL OPPORTUNITIES

October QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
■   10/02  How to Lend to the Underserved Market
■   10/11  Regulation B – Lending Policies
■   10/25  Face-to-Face Selling Skills
■   10/30  Disaster Recovery: Business Continuity
The two-hour session runs from 11 a.m.-1 p.m.:
■   10/17  Teller Regulations
     The fee for the one-hour session is $99 and the two-hour session: $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Upcoming Council Meetings
■   Human Resource Council: Thursday, October 11th. Attorney Bob Nagle will speak on wage payment and collection law. There will also be a question and answer period. The session will run from 10 a.m.-noon at the League office. There is no fee for council members. Fee for non-council members: $75. Registration deadline: October 4.

Managing Your CU in Difficult Times: Total Balance Sheet Management.
■   Two sessions designed for different audiences. This session will offer guidance to CUs who are seeing their net interest margin erode, earnings slide, and operating costs increase. Both sessions will be held on Wednesday, October 3, at the League office.
     1) Full day session for CEOs and financial management staff. 9 a.m.-3 p.m.
     2) Evening session for volunteers. 5-7:30 p.m.
The presenter will be Mark Smith.
     Call Bernadette at the League to see if space is still available.

Other October Events
    
October 9          DCUL Annual Business Mixer
                          Golf Outing. Deerfield Golf Course
           
October 26-28   DE/MD/DC Annual Volunteer Leadership Conference (VLC)
                          Clarion Fontainebleau Hotel. Ocean City, MD
Space still available for the conference, although other hotel arrangements might need to be made.

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).