Volume 27, Number 3                                     February 15, 2007

HEADLINE NEWS

American Spirit FCU Ready to Meet Chrysler Members’ Needs
     Even before Daimler-Chrysler announced its plans for the Newark Durango plant on February 14, American Spirit Federal Credit Union had initiated its own plan of action.
     The credit union, which was founded by Chrysler employees, has positioned itself to assist members in need of advice and counsel due to employee layoffs. Daimler-Chrysler has announced a restructuring plan which includes reducing production to one shift in 2007 and the idling of the Newark assembly plant in 2009.
     “We want to assure all members that their credit union is safe and secure,” says Maurice Dawkins, American Spirit President/CEO, “and that members can count on us for support in the months ahead.” Dawkins points out that the credit union’s financial position is strong, and the plant’s reduced operations will not affect credit union accounts.
     Chrysler employees started the credit union in 1963, but the field of membership has been diversified over the years. In 1998, the credit union was granted a community charter to serve anyone who lives, works, worships, goes to school, or belongs to an association in the city of Newark. American Spirit FCU currently has 8500 members – Chrysler workers account for about 12% of the credit union’s membership.
     Despite the negative impact of Daimler-Chrysler’s cutbacks, Dawkins expects the credit union to expand and prosper in the long run. “The board and staff remain committed to the credit union tradition of ‘Not for profit, not for charity, but for service.’ Our mission is to make a positive difference in the lives of our members, employees, and the community, and we will continue to do so in the days ahead.”

Debit Scam Hits Credit Union Members
     The FBI is probing the loss of thousands of dollars from Delaware and Pennsylvania debit-card holders, including credit union members. The scam was first reported in The News Journal on February 3. The fraud affected residents who shopped at the Rite Aid in Graylyn Crest Shopping Center in North Wilmington.
     Delaware First, DEXSTA, and DPL Federal Credit Union members, as well as customers of Wachovia, Wilmington Trust, PNC, Commerce Bank, and Delaware National Bank, reported unauthorized withdrawals from their accounts after shopping at the Rite Aid.
     The withdrawals occurred in Delaware and in Montgomery, Chester, and Philadelphia counties in Pennsylvania, mostly from ATMs in Wawa convenience stores.
     Kelly Allen, a member of Delaware First FCU, told the newspaper her credit union replaced the missing cash from two $500 withdrawals made on January 28 and January 30. Jason Estock, a member of DEXSTA FCU, had $980 taken from his account. He reported that DEXSTA FCU took a fraud report and credited the stolen money back to his account as a disputed transaction. The credit union also issued the member a new debit card.
     The thefts began at the beginning of January, just as financial institutions all over the United States were reissuing debit and credit cards in the wake of the December data breach of the TJX Corporation. Joel Romaine, vice president of operations for DPL Federal Credit Union, reported in The News Journal article that the credit union had sent out about 450 new debit cards and credit cards in response to the TJX breach. Fifteen Delaware credit unions have reported to the League that 10,766 credit union cards were compromised in the TJX breach.

COMPLIANCE RECAP

Daylight Savings Time Switch Means Work for Staff
     Credit union staff and others will save energy with changes implemented this year to the Daylight Savings Time schedule, but they may expend more energy ensuring their computer systems reflect the time changes, says the North Carolina Credit Union League (NCCUL).
     A new federal law mandates that beginning this year, Daylight Savings Time will begin on March 11 instead of in April. It will end in early November instead of October. Congress made the switch to save energy.
     While that may be true, credit union people may expend a little extra energy ensuring that their computer systems spring forward with everyone else. "It looks like a few information systems have the change programmed in, but many do not," says Kim Bohannon, vice president of compliance and risk management for NCCUL. Bohannon is encouraging credit unions to inventory their computer systems. "Folks need to make sure that the change is programmed in or that the vendor will be handling that detail. Otherwise, time-sensitive information such as ATM transactions will log the wrong time when the time switch happens." Therefore CUs will need to update ATMs, digital video recorders and alarm systems, as well as computers.
     An article in The Washington Post noted that older versions of Microsoft operating systems will not make the change automatically. Microsoft has instructions on how to manually update home and office operating systems on its website, http://support.microsoft.com/gp/cp_dst/t_blank.

New ACH Fee Starts Now
     Credit unions and other financial institutions should expect to see a new NACHA fee on their next bill for automated clearinghouse transactions, according to Lilly Thomas, associate general counsel of the Credit Union National Association (CUNA). Effective January 1, NACHA is assessing a fee of $0.0001 on all ACH transactions except "on-us" transactions that stay within a single financial institution.
     An additional $42 annual fee will be assessed from every financial institution using the ACH Network, including those not choosing to be members of the Regional Payments Associations, Thomas says.
      NACHA expects the per institution fee payment to be relatively small, Thomas reports, noting the organization's estimate that a financial institution with a total annual ACH volume of 580,000 transactions would pay a total of only $100 per year.

Tax Deadline Extended
     The Internal Revenue Service has announced that taxpayers across the nation will have until Tuesday, April 17, 2007, to file their 2006 returns and pay any taxes due. Taxpayers will have extra time to file and pay because April 15 falls on a Sunday in 2007, and the following day, Monday, April 16, is Emancipation Day, a legal holiday in the District of Columbia. The April 17, 2007, deadline will apply to any of the following:

1. 2006 federal individual income tax returns, whether filed electronically or on paper.
2. Requests for an automatic six-month tax-filing extension, whether submitted electronically or on Form 4868.
3. Tax year 2006 balance due payments, whether made electronically (direct debit or credit card) or by check.
4. Tax-year 2006 contributions to a Roth or traditional IRA.
5. Individual estimated tax payments for the first quarter of 2007, whether made electronically or by check.
6. Individual refund claims for tax year 2003, where the regular three-year statute of limitations is expiring.

DELAWARE NOTES

The League is proud to announce that we have 100% affiliation for 2007. All 34 Delaware credit unions and two associates have paid their dues. Thank you for your continued support

Congratulations to Savannah Jarrell, who was recently promoted to the position of vice president of operations for DELAWARE ALLIANCE FCU. The credit union also welcomes Jared Epstein as its new accountant.
     In addition, long-time board member Littleton Mitchell and his late wife Jane were honored at a reception on February 6 at Howard High School of Technology. A scholarship fund has been established in their honor. Donations to the Mitchell Fellows Program for Civil Rights and Social Justice Fund can be sent to the Delaware Community Foundation.

Condolences to the friends and family of Helen Dundee, who recently passed away. Helen served as board president of the former DART credit union. In addition, she worked for NEW CASTLE COUNTY DELAWARE EFCU for a short time.

The CUDOKU puzzle #8 winner was David Fravel of DOVER FCU. Terri Keene, general manager of NEW CASTLE COUNTY SCHOOL EFCU, was the CUDOKU puzzle #9 winner. The final prize was sponsored by League president Pat Mahaney. Terri’s prize was an uncirculated American Eagle silver dollar. Thank you to all the sponsors and players of our CUDOKU puzzles.

NEWARK, DELAWARE CITY EFCU recently showed its community spirit by sponsoring two athletes in the Special Olympics.

The Delaware Credit Union League’s 49th Annual Meeting & Trade Show, “Credit Union Royale,” is set for April 19-21, 2007, at Ruddertowne in Dewey Beach. Registration and convention information was mailed to credit union CEOs in mid-February. You may also check it out on the League website at www.dcul.org. We hope you will be able to join us for another year of education, exhibits, and entertainment. See you in Dewey Beach!

CU SYSTEM NEWS

CUs Get Good Press in Consumer Reports
     Get ready for more inquiries about joining your credit union. None other than Consumer Reports is advising its nationwide readership on how to join a credit union.
     "Credit unions serve up rates that will often beat your local bank's offerings," says the new March issue of Consumer Reports. In its "CR Money" section, the publication reports on "Credit unions: Now almost anyone can join."
     "Those in the know have always understood that credit unions offer the best banking deals around. But to get in on them, you have to become a member," says the article.
     It reports on the history of credit unions and says "switching from a bank can really pay off." It provides examples: In January, credit unions paid an average annual interest rate of 1.9% on money-market accounts, compared with banks' 1.2%. For a four-year new-car loan, banks charged 7.6% a year on average, while credit unions charged 6.2% on average, the article says.
     Credit unions can offer those rates because Congress exempted them from federal income taxes in 1937. Regulators have allowed credit unions to begin serving groups with common bonds and later large geographic areas, the article says.
     It also notes that credit unions have broadened their product lines and that they are extremely safe, with federal insurance. And it recognizes that banks are irked at credit unions' expansion.
     To join a credit union, the publication advises, stop by your human resources office, poll your family, or try the Credit Union National Association.
     As a result of the article, Salisbury TV station WBOC ran a story on credit unions last week.

CREDIT UNION JOB POSTINGS

VP of Lending. Sussex County FCU is seeking a highly qualified individual to develop and manage its centralized lending program. Position requires substantial experience in all aspects of consumer and mortgage lending, including underwriting, operations, secondary market, and capital markets. Sussex County FCU is a $200 million community charter with 45+ employees. Please send resume to HR Department, PO Box 1800, Seaford, DE 19973.

Internal Auditor. DEXSTA FCU is seeking a full-time internal auditor. Candidate will develop, coordinate, and administer periodic audit plans, and publish audit reports including recommendations. The candidate must be self-directed with 5 years related experience. Bachelor’s degree in accounting or related field required. Strong verbal, written and interpersonal skills. Prior credit union experience a plus. A competitive salary and benefits package is offered. Please send resumes with salary requirements to: HR Manager, DEXSTA Federal Credit Union, 300 Foulk Rd., Suite 100, Wilmington, DE 19803, or email to hrmanager@dexsta.com.

Credit Union Manager #1. Delaware Department of Labor FCU is seeking to fill the part-time/full-time position of credit union manager. Applicant must have a minimum of 2-3 years experience in bookkeeping, record keeping, and accounting (GAAP); computer knowledge; and excellent managerial skills. Salary ranges from 31-35K annually with benefits. Please send resume to: Department of Labor Federal Credit Union, 4425 N. Market Street, Wilmington, DE 19802, or fax to 302-761-6628. Attn: Joyce Bolling.

Credit Union Manager #2. Wilmington-area credit union has an immediate opening for a general manager with bookkeeping experience. Banking/credit union experience is a plus. Fax resume to 302-633-5581 or email resume to cugirls@verizon.net.

Full-Time Teller Position. Chestnut Run FCU is seeking a full-time teller. Experience a plus. Applicant needs good member service skills and should desire to learn other tasks associated with a credit union. Salary commensurate with experience. Benefits include health care, 401k plan, vacation, life insurance, and Blood Bank. Fax resume with salary requirements to 302-999-4889.

EDUCATIONAL OPPORTUNITIES

February/March QuickBites Teleconferences
One-hour sessions – 11 a.m.-noon
■  2/22  Right to Financial Privacy Act
■  3/1    Your Members’ Experiences: Win, Wow, Worry
■  3/7    Tattoos: The Ultimate Proof of Successful Brand
■  3/20  Top Ten Collection Tips
■  3/29  Decedent Accounts
Two-hour session – 11 a.m.-1 p.m.
■  3/14   Disciplining and Documenting Employees
The fee for one-hour sessions is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

North Law Firm Webinar on Denial of Services – Thursday, February 22, from 1-2:30 p.m. This important compliance session will discuss the question: Must you offer all services to all members? The fee is $125 per telephone/Internet connection if paid by credit card (online or by telephone). For that price, you may have as many participants as you wish on a single telephone line and Internet connection. For more information or to register, go to www.culaw.com or 408-279-8800.
           
Collection Council Meeting – Tuesday, March 13, from 10 a.m.-noon at the League office. Topic: Strategies to Assist Pre- and Post-Judgments. Issues to be covered include a review of laws applicable to debt collection; locating the debtor (public records and the Internet); pre-judgment strategies (telephone and face-to-face contact); and post-judgment strategies (wage attachments and asset searches). Council members should R.S.V.P Bernadette Hines to attend. Non-council members can attend for a fee of $75.

League Activities in January/February

COMMUNICATIONS/PUBLIC RELATIONS

     Card Breaches. The number of Delaware credit unions impacted by the recent credit card breaches through the TJX Corporation keeps rising. The League is keeping track of the amount of compromised cards reported by Delaware credit unions due to the breach. The number (as of February 14, 2007) is 10,766 with 15 credit unions reporting. CUNA and CUNA Mutual are supporting legislation that will ensure that card data is suitably protected and that firms act responsibly if there are data breaches. This information collected by the League will be used to discuss data breach legislation when we have our Hill visits in February.

     News Journal Liaison. The News Journal has a new banking reporter to replace Ted Griffith, who is now with Gannett News in Philadelphia. Leslie Pappas was one of the authors of the 2/3/07 article that described the PIN number scam involving Rite Aid customers. The League has contacted Ms. Pappas and has encouraged her to contact the League for any credit union information or referrals for information. Furthermore, George Fitzgerald, a member of the League Governmental Affairs Committee, was recently featured in a new column in “Business Monday” called “Ask the Expert.” In the column, George answered a question about credit reports based on his research while championing the credit freeze bill in the Delaware legislature.

     Business Ledger’s Book of Lists. The Business Ledger has published its 2007 Book of Lists. Alice worked with Mark Corrigan in gathering the information about Delaware credit unions. The information was submitted in October, so the data provided was based on NCUA’s June 2006 call reports. The list contains the top 27 Delaware credit unions by asset size. The Book of Lists is designed to list only the top industries or companies in any given area, and in the past this reference guide has listed all 34 Delaware credit unions. However, this year six credit unions placed ads which appeared on the “Top Credit Unions” listing pages, so the space was restricted to the top 27 credit unions in assets.

     League Staff Travel. League staff recently met with individual credit unions regarding management succession planning and debit card program implementation. The League continues to assist Stepping Stones Federal Credit Union with its charter application. Patrick Mahaney and Jane Bailey attended the American Association of Credit Union League’s (AACUL) Conference in California. In February, Pat will be attending CUNA’s Governmental Affairs Conference in Washington, D.C., and CUNA Mutual Group’s Dialogue Conference in Arizona in mid-March.

GOVERNMENTAL AFFAIRS

      CUNA’s Governmental Affairs Conference. Sixteen credit union members have signed up for CUNA’s Governmental Affairs Conference in Washington at the end of February. Registered credit unions are American Spirit, Delaware State Police, DEXSTA, and Sussex County. Tony Casarino from ICI America FCU has been awarded a conference registration scholarship by the GAC Committee, who will also sponsor GAC chairman Allen Riley to attend. In addition, the GAC Fund will pay for a van to take “day trippers” to Washington on February 28 for our Hill visit. Call Alice Smith at the League to sign up to ride the van.

LEAGUE SERVICES

     CUNA Mutual Retiring 800 Number; New Contact Number Available. In efforts to simplify access to CUNA Mutual Group field employees and support the single point of contact for credit unions, CUNA Mutual is retiring the following number: 800-333-2644. The new contact number is: 800-356-2644. Callers will be connected with the Customer Access Team in Madison.

     CenterOne Program. The League recently hosted a session to introduce CenterOne’s repossession program. As a result, five Delaware credit unions are currently signed up for this service. There is no fee to enroll; the credit union pays as it uses the repossession service.

     Strategic Planning Services. Jim Merrill, vice president of business development for the New Jersey Credit Union League, will be offering strategic planning services to Delaware credit unions, under an agreement with the Delaware League. Jim’s proximity to Delaware will cut the cost of travel expenses, and session prices are based on the size of the contracting credit union.

EDUCATION AND TRAINING
           
     Education Awards. Pat Mahaney attended DPL Federal Credit Union’s annual meeting on January 26 and presented STAR certificates to its staff and VAP certificates to volunteers. Three individuals earned four certificates in 2006. The League will make similar presentations at the annual meetings of other credit unions which participate in the certificate programs. For further information on any of these self-study programs for staff, mid-management, or volunteers, contact League education director Bernadette Hines.

     League Meetings Reminder. The League continues to publish a biweekly educational sessions’ listing, which showcases all upcoming classroom sessions and QuickBites teleconferences, as well as CUNA schools and conferences. The current calendar has sessions listed from February through April with Bank Secrecy Act, supervisory committee, and basic teller training scheduled for the second quarter of 2007. Individuals may receive an email version of this calendar by contacting Alice Smith at alice@dcul.org.

     2006 Professional Councils. There are 15 credit unions registered for Professional Councils. The first Collection Council is scheduled for March 13th, with other council meetings to be scheduled shortly.

JANUARY EDUCATION SESSIONS

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).