Volume 28, Number 11                                                                   June 15, 2008

HEADLINE NEWS

Get Prepared: Credit Unions Must Meet November 1 Identity Theft “Red Flag” Requirements
     Effective November 1, every financial institution, including credit unions, must have completed the process of developing and implementing a written, board-approved Identity Theft Prevention Program.
     The NCUA, the Federal Trade Commission (FTC), and the federal banking agencies have issued final guidelines and regulations to implement Section 114 of the Fair and Accurate Credit Transaction Act (FACTA). Section 114 defines the identity theft “red flags,” and NCUA regulations will apply to federal credit unions.
     The regulation defines “covered accounts” as those:

• Offered or maintained primarily for personal, family, or household purposes that involve or are designed to permit multiple payments or transactions, such as a credit card account, mortgage, loan, automobile loan, checking account, or share account; and
• Any other account the credit union offers or maintains for which there is a reasonably foreseeable risk to members or to the safety and soundness of the federal credit union from ID theft, including financial, operational, compliance, reputation, or litigation risks.

     The guidelines indicate that, to avoid duplication, a credit union may incorporate existing fraud prevention policies and procedures into the Identity Theft Prevention Program.
     Each credit union’s program/policy must be appropriate for its size and complexity, and:

• Have policies approved by the Board of Directors;
• Assign responsibility;
• Annually review and adopt necessary changes;
• Ensure staff is trained; and
• Include appropriate oversight of service providers.

     The rule does give some guidelines on what could be construed as red flags for ID theft. For more information on the rule, go to http://www.cuna.org/reg_advocacy/member/download/finalanalysis_ftc_ncua_110207.pdf 
     The final rules also require credit unions that issue credit and debit cards to assess the validity of requests for address changes that are followed closely by a request for additional or replacement cards. The rules apply to address change notifications received from the member, as well as the U.S. Postal Service. CUs that receive a change of address notification and, within at least 30 days, a request for an additional or replacement card may not issue the card until it has notified the cardholder or has otherwise assessed the validity of the change in accordance with its established policies.
     As for staff training requirements, staff should be educated on how to identify ID theft; what steps they should take to provide information and/or advice to the victim; and how and to whom the victim should report ID theft (e.g. credit bureaus and the Federal Trade Commission). Education tools can be found at FTC’s website: http://www.ftc.gov/bcp/edu/microsites/idtheft/
     Contact Susan Fallon at the League for more information. The League is also working to provide a training session that will cover this requirement.

Report Classroom Presentations
     Credit unions that participate in classroom presentations at local schools, community or church groups, or other organizations are encouraged to report their programs to the National Youth Involvement Board at www.nyib.org. Reporting is easy. If you have previously submitted reports, just log in to your reporting page on the NYIB website. If you are a first-timer, you will need to click on “New User Sign Up” and provide requested information. Debbie Jewell, business development manager at Del-One (Delaware FCU), recently reported that CU staff made 13 presentations to over 435 students during the past school year.

COMPLIANCE NEWS

Attention: CUs With Members in Pennsylvania
     The Pennsylvania Electronic Lien Titling Law, which goes into effect July 10, 2008, mandates that any lender wishing to become a lien holder on a vehicle financed for a PA resident must be an ELT (Electronic Lien and Title) participant, as Pennsylvania will no longer issue paper titles to lien holders.
     As a result of this mandate, the Pennsylvania Credit Union Association (PCUA) has entered into an agreement with an ELT provider, FDI, to offer an ELT program to their PA credit unions. Because of their volume of credit unions/members, PCUA was able to get discounted pricing from FDI for this service. The Delaware League has negotiated with PCUA to allow our Delaware credit unions that do vehicle loans in Pennsylvania to participate in their program at the same discounted rate. PCUA will also provide on-site training for those credit unions signing onto this program.
     If your credit union does vehicle loans for Pennsylvania members, you must file those liens electronically after July 10, 2008.
     If you wish more information on the ELT program, contact Jane Bailey at the Delaware League, and she will send FDI background, program, and pricing information.
[FYI: Delaware does not have an electronic lien filing system.]

Safe Deposit Box Procedures
     CUNA Mutual Group advises that credit unions offering safe deposit box services to their members should utilize a rental card and agreement. Those new to this service offering should also consider documenting the rental transaction with members.
     Credit unions currently using LOANLINER paper document D2500 will now use two new documents – a Safe Deposit Box Card and a Safe Deposit Box Agreement
     Support for CUNA Mutual’s paper document D2500 will end on August 1, 2008. Credit unions using its electronic document D2500 will need to call Customer Service to order new images, since CUNA Mutual will not automatically send out new images. Support for the electronic document D2500 will end on January 1, 2009.

• Clearly and conspicuously indicate that the message is an advertisement or solicitation;
• Provide recipients with an opportunity to “opt-out” from receiving additional commercial e-mail messages from the same entity; and
• Provide a physical postal address of the sender.

     In a final rule analysis, CUNA advises that “transactional or relationship” e-mails, which may include most if not all e-mails sent by a credit union, are not considered commercial e-mail messages and, therefore, are not subject to the same requirements. For more CUNA analysis, go to http://www.cuna.org/reg_advocacy/member/analysis/ftc_060608.html.

New FTC Videos Help Consumers Spot Phishing Scams
     The Federal Trade Commission (FTC) has released three 60-second videos to help alert consumers to phishing scams. Phishing uses deceptive spam to trick consumers into divulging sensitive or personal information, including credit card numbers and other financial data, through an email or a link to a “copycat” site.
     The goal of the videos is to offer practical, useful, and memorable messages. The videos are the newest tool on OnGuardOnline.gov, the agency’s multimedia initiative to help consumers be on guard against Internet fraud, secure their computers, and protect their personal information. The website features tips, articles, how-to videos, interactive quizzes, and tutorials in English and Spanish. To view the videos and obtain other helpful information, please go to http://onguardonline.gov/index.html.   

SYSTEM NEWS

Suspected CU Robber Arrested
     Federal agents and Chester, Pennsylvania, police recently arrested a 22-year-old man accused of robbing banks in Delaware and Maryland. Brandon K. Hall of the 600 block of East 17th Street in Wilmington was apprehended in Chester. Hall was wanted by Delaware State Police in connection with an August 15, 2006, robbery of the Chestnut Run Federal Credit Union at 926 Centre Road near Prices Corner. He was also sought by Wilmington police for a robbery on March 17, 2006, at the WSFS Bank branch in Trolley Square and by Elkton, Maryland, police in connection with a robbery on April 2, 2007. [June 4th News Journal]

On-Demand Robbery Training
     Acknowledging that even Delaware CUs are robbed, teach your staff to be prepared to calmly and safely deal with any robbery situation with the first release in a series of on-demand trainings for credit union staff and managers offered by CUNA.
     The Robbery: Actions, Reactions, and Coping Skills Training on Demand (stock number FC101P) advises staff on the steps to take before, during, and after a robbery to calmly cope with this frightening and dangerous experience and to avoid any action that might endanger staff or members.
     CUNA's Training on Demand offerings were first introduced in November 2007. Each downloadable package consists of a 30-45 minute video-like training presentation, printable workbooks, and five online exams for optional testing. The portable presentations can be saved to a computer, DVD, or USB drive and used an unlimited number of times.
     Each topic sells to credit unions for $199; however, members of CPDOnline receive access to all Training on Demand courses and exams included in their membership. For more information, go to Training on Demand.

Choosing Bankruptcy
     Despite the 2005 passage of a law that made it more difficult and expensive to file for personal bankruptcy, more Americans are choosing bankruptcy. Filings – including Chapter 7, which wipes out debt, and Chapter 13, which reorganizes it – totaled 822,590 last year, up 38 percent from 2006. The numbers tell the story of a crippled economy, one in which people owe more than they can pay to their creditors – be they credit card companies, mortgage lenders or auto and student loan servicers. And it’s one more disturbing chapter in the saga of the subprime mortgage crisis, in which homeowners unable to handle higher interest payments on their adjustable rate mortgages are turning to bankruptcy to avoid foreclosure.

USA Today Features Biz Kid$ in Money Section
     BizKid$, a television program underwritten by America's Credit Unions and aimed at teaching young people about money, received coverage in a recent USA Today “Money” section. BizKid$ is funded by the National Credit Union Foundation and was developed by Junior Achievement. It airs on 311 of the nation's 343 PBS stations in 49 states. American Public Television reported that by March, the show had reached 118 million households. It is airing in 14 of the nation's top 15 markets.

Mica Named a Top Washington Lobbyist
     Dan Mica, president/CEO of the Credit Union National Association (CUNA), has again been named as one of Washington's top lobbyists by The Hill newspaper. This is the sixth consecutive year Mica has been named to the list.
     The Hill noted that Mica is working to get legislation passed that would improve the regulation of credit unions. The Credit Union Regulatory Improvements Act (CURIA), supported by CUNA, is H.R. 1537 in the House and was introduced recently in the Senate by Sen. Joseph Lieberman (I-Conn.) as S. 2957.
     The Hill's list of top lobbyists is created based on conversations with aides, other lobbyists and members of Congress.

DELAWARE NOTES

Congratulations to the members, staff, and volunteers of DOVER FCU as they celebrated the credit union’s 50th anniversary on June 11 at all their locations. A special 50th anniversary gala is planned for June 21 in Dover.

Several credit unions have awarded academic scholarships recently. LOUVIERS FCU awarded four scholarships valued at $3500 to members who are pursuing advanced education in accounting and finance. DEL-ONE (Delaware FCU) awarded two $1000 scholarships and DEXSTA FCU three $1000 scholarship at their annual meetings. DPL FCU also offered two $1000 to college bound seniors.

Del-One’s scholarship winners, Johnathan Charles, Indian River High School, and Amanda English, Smyrna High School

In an effort to raise funds to donate to the American Red Cross of the Delmarva Peninsula, SUSSEX COUNTY FCU sponsored a “dress down day” on May 23. Each employee who participated made a $5 contribution to the Red Cross. The event was successful and the employees raised $300. In appreciation of the efforts of the local American Red Cross, Sussex County FCU matched the employees’ contributions for a total donation of $600.

SussexCounty staff presents donation to the American Red Cross. First row (l. to r.):Paula Campbell, Sarah Gilmour (American Red Cross), Joann Kirwan. Second row: Periann Palmer, Amy Shea, Kathy Coffin, Trent Jones, Ashley Tyre, Zee Imhof, Karen Jefferson, Sherry Shockley.

On May 24, LOUVIERS FCU sponsored the Wilmington Blue Rocks vs. Lynchburg Hillcats game. Marketing coordinator Faith Simpers threw out the first pitch, and the first 1,000 attendees received T-shirts.

Individual with customer service skills in the mortgage/lending area seeks CU position. Resume #06-02-08.

Individual seeks a member service representative or teller position. Is planning to move to Delaware from Georgia. Resume #06-10-08.

Credit unions who are interested in either of these resumes should call Susan Fallon at the League.

EDUCATIONAL OPPORTUNITIES

June/July QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
•   6/23  Sustained Loan Growth Through Innovation
•   7/01  Employee Record Keeping
•   7/16  Robbery Awareness
•   7/22  Auto Lending in a Soft Market
•   7/31  The Youth Market 
Two-hour sessions run from 11 a.m.-1 p.m.
•   6/17  Risk Based Lending
•   7/09  Teller Regulations
The fee for the one-hour session is $99; the two-hour session is $169. The deadline to register with Bernadette Hines is one week prior to the session.

Cards Council – Wednesday, June 18. Topic: Cards Marketing and Capital One’s Decoupled Debit Card. The session begins at 10 a.m., ending with lunch. Members of the Marketing Council are encouraged to attend the Cards Council meeting as well. There is no fee for council members; the fee for non-members is $100 per session.

Delaware Credit Union CEO “Meet and Greet” – Wednesday, June 25, at Dover FCU’s corporate office at 1075 Silver Lake Boulevard in Dover. Come out and meet your fellow CEOs and provide suggestions for League training and service opportunities. Time: 3:30-6 p.m. Official invitations have been sent to each CEO. R.S.V.P to Alice Smith by June 18.

CU Volunteer Program: Board Officer Roles. Two opportunities: Wednesday, July 16, from 4:30-6:30 p.m. at Del-One (Delaware FCU) at 270 Beiser Boulevard in Dover, and Thursday, July 17, from 5:30-7:30 p.m. at the League office in New Castle. The roles and responsibilities of the board chair, vice-chair, treasurer, and secretary will be reviewed by League president Patrick Mahaney. Fee: $95 per participant. A light meal will be served one-half hour before the presentation. Registration deadline: July 9.

League Activities in May/June

LEAGUE SERVICES

          Spring Golf Outing. League president Pat Mahaney and executive vice president Jane Bailey hosted the League’s spring golf outing on June 4 at the Rookery in Milton.Over forty golfers participated in this annual event, which is usually held prior to theLeague annual meeting.The first place team from DPL FCU included Tony Hinds, Bob Oakes, Kevin Oakes and Todd Rosselle. The second place team was represented by John King and Jim Maloney, Eagle One FCU; Paul Butler, CUNA Mutual; and Joe Reiner, Mid-Atlantic Corporate. Vic Carter of Louviers FCU won the closest to the pin award, and Mike Gorski of Del-One (Delaware FCU) fielded the longest drive.

First place team (l. to r.): Kevin Oakes, Todd Rosselle, Bob Oakes, and Tony Hinds – DPL FCU

COMMUNICATIONS/PUBLIC RELATIONS

          Staff Travel. League president Pat Mahaney and financial administrator Charlie Jenkins attended Seaford FCU’s new Millsboro branch opening on June 10. In addition, League staff will be attending the ribbon-cutting at Delaware First FCU's new branch building in Middletown and Dover FCU’s 50th anniversary party – both on June 21.

          Delaware League News and Risk Alerts. The League emailed seven news alerts and three risk alerts during May. Topics included new CUNA initiatives, economic news, and new phishing scams.

          Credit Union Supplement. In planning for the 2008 CU Week Supplement in The News Journal, the League has requested Delaware credit unions to collect comments from their members regarding “why they like their credit union.” These comments can be solicited through the credit union newsletter or at annual meetings and forwarded to the League in August. These good news stories can then be showcased in the supplement.

GOVERNMENTAL AFFAIRS

          Call to Action Regarding CURIA. The League has recently coordinated several calls to action for Delaware credit union staff, board members, governmental affairs committee and other key contacts to generate letters and emails on key credit union issues.
          Several CEOs and board members have written letters thanking Senator Joseph Lieberman (I-Conn) for introducing the Credit Union Regulatory Improvements Act (CURIA) in the Senate and to Senators Susan Collins (R-ME) and Olympia Snowe (R-ME) for being the first co-sponsors. Copies of correspondence were received from Dawn Sutcliffe and Betsy Cole, Delaware Alliance FCU; Duke Strosser, Del-One; Mike McCaughan, E.W.O.D.; John Watson, Seaford FCU; and Pam Fleuette, Sussex County FCU. Allen Riley, chairman of the Governmental Affairs Committee, also wrote on behalf of the committee. The bill becomes Senate bill 2957 to complement H.R. 1537, which currently has 149 co-sponsors. Delaware credit unions and the League are also contacting Senator Carper and Senator Biden to co-sponsor this bill.
          League president Pat Mahaney and Alice Smith have spent a large amount of time recently monitoring all the political advocacy activity being initiated by the Credit Union National Association on behalf of our member credit unions. They also wrote letters regarding support of the Senate bill for CURIA, as well as opposing legislation that regulates interchange fees – S. 3086, the Credit Card Fair Fee Act.

EDUCATION

          Recent Education Sessions. In response to training requests by Delaware credit unions, the League recently offered three Bank Secrecy Act training sessions for credit union staff and board members. Robbie Thompson, general counsel and director of regulatory compliance for the New Jersey League, presented the required training. At the end of May, Sheila Birnbach of GB Associates presented a full day teller workshop and half-day member service session. Please contact Bernadette Hines with any further training requests.

May 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).