SECU Intro's 'NSF-Fee Free Days' Overdraft Program
RALEIGH, N.C.-State Employees' CU announced that overdraft fees for members will be waived on two days a year-what SECU calls "NSF-Fee Free Days."
Regardless of the number of items marked as non-sufficient fees on either of the two days, SECU will return the items to the payee but waive its $12 per NSF fee. More improvements in SECU's overdraft protection program are planned for later in the year, the credit union said, including the release of a new controlled spending account designed to be used in conjunction with a debit card, for members who would like to eliminate the possibilities of overdrafts entirely.
SECU is also working on a program called "Another Chance," which will provide mobile alerts and an additional day for members to cover inadvertent overdrafts without fee, return or embarrassment. The "Another Chance" program is scheduled for introduction in spring 2010.
Moebs Wins Patent For Overdraft Protection Svc.
LAKE BLUFF, Ill.-Moebs Services has been granted a patent for a new service that will allow credit unions and banks to customize their overdraft protection programs.
Moebs said its Debit $coring allows financial institutions to provide overdraft service to the largest number of qualified account holders possible, while simultaneously helping them manage risk and lower their cost. The process is embedded in a service sold by Moebs Services called No-Bounce Checking, which allows financial institutions to assess consumer risk and establish a wide range of customized overdraft limits while controlling their losses, protecting their revenue and increasing their volume of checking accounts.
The company says Debit$coring can qualify more consumers through its selection criteria, offer meaningful overdraft limits for each consumer, and reduce the fees they charge for coverage, while reducing losses and protect revenue generation while building consumer satisfaction and loyalty.
According to Moebs, when the process was tested in Miami, the worst checking market in the country, banks and credit unions using the service experienced only 4% in losses. Other financial institutions using the traditional approach to overdraft coverage experience 20% to more than 30% loss of revenue.
Tropical Hires Well-Known CU Exec MIRAMAR, Fla.-Tropical Financial CU, struggling under the weight of Florida's real estate mess, has hired long-time credit union executive Richard Helber as its new president and CEO.
Helber, a former president of Central Corporate CU in Michigan, an executive at U.S. Central FCU and most recently chief financial officer at GTE FCU in Tampa, Fla., has more than 30 years experience with credit unions. He will succeed Greg Blount, who is retiring Feb. 1.
Tropical Financial, a one-time $750 million credit union, reported $680 million in assets on Sept. 30, with losses of $10.2 million for 2008 and $4.3 million for the first three quarters of 2009.
Wescom Sheds Insurance Assets
PASADENA, Calif.-Wescom Central CU, which has been closing branches and trimming its deposit base as its deals with large losses, announced a deal to sell the Commercial Lines and Life & Health books of business of its Wescom Insurance Services, LLC. The business was sold to Hub International Limited, a Chicago insurance broker. Terms of the deal were not disclosed. This transaction will expand Hub California's geographic footprint in Southern California by adding a strategic office in Downey, between other existing offices.
CU Waives CD Fees For Hardships
GROTON, Conn.-Charter Oak FCU reminded members that the credit union will waive penalty fees for individuals who lose their jobs or are facing other certain hardships when they withdraw funds from their share term certificates. Available exceptions for the waiving of early withdrawal penalties include: the involuntary loss of employment where the depositor is qualified for unemployment benefits, the death of the CD holder or a member of their immediate family, the permanent disability of the CD holder or a member of their immediate family, or a terminal illness experienced by the CD holder or a member of their immediate family.
Appropriate documentation of the hardship is required.