Links in “Credit Unions”
- A Cautionary Tale about Transferring Social Security Benefits
$18.6 million Wallingford Municipal FCU in Connecticut is facing a $63,000 statutory theft claim, $41,000 in punitive damages and $96,000 in attorneysâ fees as a result of transferring a $14,000 Social Security disability benefit check deposit to a defaulted loan balance; the CU is appealing the decision. [9/6]
- Taking a Closer Look at the NCUA’s “Common Bond” Letter
The NCUA's letter should prompt federal credit unions to do two things: 1) review their advertising practices, and 2) take a closer look at the requirements for associational common bonds, which are recounted in this post. [9/6]
- Bank Report on Tax Code Reforms Repeats Claims Against Credit Unions
Paul Gentile, CUNA EVP of Strategic Communications, identifies a number of areas in a recent bankersâ report that he says misrepresent credit union activities. Gentile also points out that banks continue to enjoy record profits while arguing that credit unions should be taxed to level the playing field. [9/5]
- Which Loan Docs Require Consumer’s Sig?
A breakdown of the loan documents that require consumer's signature. [9/5]
- Website Posts List of CUs “Open to Anyone”
In light of the NCUA's recent letter cracking down on "open membership," website publishes list of CUs that are open to anyone for those consumers seeking to get in before the back door closes. [9/5]
- NCUA Warns CUs about Common Bond Advertising Compliance
NCUA letter to credit unions warn against overly aggressive advertising campaigns that advertise membership is "open to anyone," including those that include first joining a particular association. [9/5]
- Survey: 36% Say Data Management Compliance a Top Priority
Among the regulatory issues cited in the survey was data silos within the institution, which make it difficult to share data between different parts of the institution. [9/5]
- Donât Mess with the Little Guys!
$2 million SMHA Federal Credit Union is suing its sponsor, the Stark Metropolitan Housing Authority, for breach of contract, claiming that the agency failed to pay annual subsidies, wrongfully attempted to recover a $2 million grant the agency previously provided to the credit union, and interfered with a merger between the credit union and another credit union; the sponsor has recently come under fire for allegedly misusing public housing operating and capital funds. [9/4]
- More Members Than Babies
Membership in credit unions grew at three times the pace of the U.S. population in July, pushing the total credit union membership to more than 98 million. Do experts believe this growth rate is sustainable? [9/4]
- NCUA Expands Recovery Efforts by Suing Morgan Stanley
On the heels of a recent appellate court victory, NCUA has initiated a lawsuit against Morgan Stanley and other firms for selling faulty mortgage-backed securities to WesCorp, U.S. Central and other corporate credit unions; NCUA is seeking to recover approximately $566 million for violations of federal and state securities laws. [9/3]
