Church credit union marks first year
FORT WAYNE-Even a quick visit with the Rev. Dr. Sylvester Hunter will tell you he's not the type to fall into the current fad of teaching "prosperity theology"- riches in return for worship God. Rather, his conversation centers on the spiritual nature of life and the potential any of us can reach when we understand whom and what we are. That's how deep the conversation quickly can get when speaking with the local pastor.

That doesn't, however, mean that he's not concerned with life right here on earth. Coming from the tradition of the Black Church, Hunter, pastor of Union Baptist Church, the oldest black Baptist church in Fort Wayne, is quick to remind us that the church is the center of all aspects of life. And, it has been a sanctuary for black folks in every way conceivable-spiritually, socially, politically and financially.

Given that, it should come as no surprise that Dr. Hunter and the entire congregation and staff at Union Baptist Church just celebrated a important anniversary for not only the church, but for the entire community. On April 12, church members marked the one-year anniversary of the establishment of the Union Baptist Church (UBC) Federal Credit Union. Housed in the church at 2200 Smith St., the landmark financial was chartered and established in April 2007 by members of Union Baptist Church and its board of directors. In just one year's time, UBC Federal Credit Union has grown to more than 250 members. But, according to Hunter, folks shouldn't get the impression that this groundbreaking venture sprung up over night.

"About six years ago, the Lord told me to open up a financial institution," explained the Rev. Hunter. [Read story at FrostIllustrated.com].

Credit Union 101
When I tell someone that I work for a Credit Union, often I think that they hear "Bank." Outside of the Financial Services Industry, I can understand how many people could misunderstand them to be one in the same. We both have ATM's, Checks, we're both insured and regulated by the Federal government, and we both get mad when you forget to mail in your loan payment. So I thought I would spend this week discussing what makes a Credit Union a Credit Union...and how our differences might benefit you and your financial goals.

Credit Unions were formed around the beginning of the twentieth century so that ordinary folks could borrow money. At that time, Banks were like Private Clubs only reserved for the very wealthy. If you were a regular Joe, it was nearly impossible to obtain a loan through what we would consider normal avenues today. The structure of a Credit Union has remained relatively unchanged and essentially is a cooperative of individuals who pool their resources to financially assist one another, "the membership". Thus, equal regard to the contributions of each member is given. The mission is mutual assistance, not profit. [Read story at VenturaCountyStar.com/by Jessica Reinhardt].

A nice lazy weekend

Auto dealers are trying to kill credit union program
Why am I writing this column? The Wisconsin Automobile Dealer Association is doing its best to destroy the one alternative Racine consumers have when it comes to buying a used vehicle: buying a used vehicle from a credit union rather than from a traditional automobile dealership.

Educators Credit Union established their auto and lease program six-plus years ago. It was and is a first in the nation: a car-buying program literally housed in a credit union, and more importantly, a car-buying program based on credit union principles. For six-plus years, the program has operated openly and with the tacit approval of all regulating bodies.

From day one, the Educators used-car program has been a dramatic success: over 3,500 members have purchased vehicles without the usual pressure and confusion associated with traditional car seller. The members have also saved tens of thousands of dollars.

Traditional car dealers don't like this one bit. They want that money back - as profit for them. [Read story at BizTimes.com/by Remar Sutton].

NAFCU Compliance Blog
Identifying itself as "a helping hand for credit union compliance officers", the NAFCU Compliance Blog is a terrific resource! This is a valuable source of supplemental information on difficult compliance topics.
 
Ron Bensley, Jr.

Robber pepper sprays everyone in Kelso credit union
KELSO — Authorities say everyone in a Kelso credit union office was lined up and pepper sprayed in a holdup.

Then, upon leaving, the robber reportedly took off his ski mask and said, "Good day, gentlemen," to two men outside the Fibre Federal Credit Union.

Police Capt. Vern Thompson says the robber brandished a semiautomatic handgun when he entered the credit union Tuesday afternoon.

He ordered an employee to fill a bag with cash, lined up the other workers and a customer against a wall and pepper strayed them — and when the employee returned with the money, he pepper sprayed her, too. [Read story at By The Associated Press].

Credit Union VP shares passion for evangelism & prayer
JACKSONVILLE (FBW)—As a youngster Lillie Andrews remembers her mother would put drops in for her earache and tell her to “just keep praying.”

“I would fall asleep praying and wake up just fine,” Andrews recalled. “I have been blessed. God has just given me a good job with a wonderful family that I love and wonderful people who have overcome obstacles.”

At FBCU, she oftentimes prays with employees and even clients about their concerns, something she didn’t regularly do, at least without raising a few eyebrows, at her other places of employment. And even while she’s directing human resources, serving as the credit manager, insuring compliance and overseeing all aspects of credit union operations, she enjoys her work.

“It’s triple as good as just a regular credit union,” Andrews said. “No, I don’t get to witness to people very often, but I do get to encourage and support people who are in ministry—and the credit union also tithes back, and supporting that work is fabulous.” [Read full story at FloridaBaptistWitness.com/by Joni Hannigan].

Sterlent Credit Union discussed in local news media
Pleasanton, California-based Sterlent Credit Union's financial woes have been reported in local community newspapers. George Avalos wrote a May 13 article in the Contra Costa Times regarding Sterlent's woes caused by high delinquency rates on home equity lines of credit. The article quoted Sterlent CEO Sue Raines as stating, "We are in the process of working with a potential partner that will provide positive long-term solutions to these issues," although no specifics were provided.
 
Mr. Avalos' article, which also was published in sister publication Inside Bay Area, was rather low-key in details compared to the May 6 story in the Credit Union Times, in which writer Carol Anne Burger unambiguously stated "Sterlent Credit Union...... is insolvent. Sterlent’s net worth is now -0.29%. With delinquency at 3.76% and charge-offs for the quarter ending March 31 of $3.8 million and a return on assets of -22.13% and a net income loss for the quarter of $5.5 million, the CU is either facing a conservatorship, liquidation or forced merger."
 
California's Department of Financial Institutions, which is the regulator of state-chartered Sterlent, must be facing some hard questions from NCUA about Sterlent's business practices and the effectiveness of regulatory supervision.
 
This writer is also sincerely concerned whether NCUA has sufficient skilled manpower and leadership resources to effectively monitor safety-and-soundness problems at SIF-insured credit unions. Does the financial debacle at Sterlent, as well as previous problems at Cal State 9, Norlarco and Huron Area credit unions, suggest that NCUA needs more resources from Congress to adequately conduct safety-and-soundness oversight and examinations of Share Insurance Fund member credit unions?  How can NCUA do a more effective job of due diligence as Share Insurance Fund administrator in detecting financial performance deficiencies before they balloon to the point of insolvency?
 
Credit union leaders don't want NCUA's SIF to be merged by Congress into the FDIC, so I think this is a topic too important to "sweep under the rug".  After all, Sterlent's high-risk residential lending program was developed over a period of years, not overnight, and California's DFI and NCUA were both disappointingly ineffective in monitoring Sterlent. While the regulator and insurer probably weren't "asleep", why did they fail to detect these serious safety-and-soundness issues for so long?
 
Ron Bensley, Jr.

A real good reason to close the office

I never understood how a credit union could sell a member's credit card to a bank [Chuck]

Whats in your Wallet?

Does… your Credit Card Co. keep changing your balance due date?

I think mine is pissed cause they don’t make any money off me, so they they try and trick a late fee out of me.

Every month I pay my bill in full and never carry over any balance. If I can’t afford to pay off the bill I don’t buy it and I’ll do with out and save longer until I can pay for it. Mostly, I use the good ole CC for online purchases to protect myself in case of fraud or a bogus deal.

So here’s how they tricked me to get some money out of me since I refuse to get caught in their “live the life now” and get caught up in the revolving interest trap. 

About 2 years ago my credit union sold it’s CC part of the business to a big name bank. Back then, my due date was the 19th of the month all the time. And typically I’d log on a little early and pay it off. Well, after the new bank took over, one month I was real busy and log online to pay the bill on the 18th, what I thought was the day before it’s due, and find out my due date was bumped up few days (16th I think) so now I’m late on my payment. So they nail me for a late fee. [Read story at Chevelles.com].