Hyland Plans To Leave NCUA Board Effective Oct. 5

ALEXANDRIA, Va.--NCUA Board Member Gigi Hyland last week said she is resigning from the board effective Oct. 5. Hyland has been on the board for seven years.

"I am leaving the board confident that today and for the foreseeable future credit unions will continue to play a vital role in providing consumers quality, lower-cost financial products and services," said Hyland.

Hyland, who was general counsel with the Association of Corproate Credit Unions prior to joining NCUA, said she plans to take time off before exploring other opportunities.

Study Shows Interchange Has Increased Since Durbin

ARLINGTON, Va. - A study released last week by NAFCU shows that credit unions have increased their debit interchange revenues since last year's enactment of the Durbin Amendment's cap on interchange due to a rise in transaction volume, even though per-transaction fees have declined for many credit unions.

The new study shows almost 21% of credit unions reporting a decline in per-transaction debit income, even though the Durbin Amendment does not directly impact them. Of the CUs surveyed, 53.1% reported an increase in monthly income from debit, indicating that transaction volume has increased. Only 9.4% of respondents have noticed a decline in monthly debit income, while 37.5% have not noticed any change.

Cards interchange is the biggest form of non-interest income earned by credit unions, generating an estimated $5 billion last year, about $3 billion from debit and $2 billion from credit. While gross income related to interchange fees may be rising, in many cases it is not sufficient to cover the costs of processing additional transactions, concluded the NAFCU study.

The most common measure that survey respondents have taken or are considering is eliminating or reducing debit rewards programs (27.6%). Other options include eliminating free checking accounts (25.8%), reducing staff (12.9%) and charging members a monthly fee for access to a debit card (9.4%).

Republican State AGs Decline To Sign CFPB Deal

WASHINGTON - A group of Republican state attorneys general has declined to sign cooperation agreements with the Consumer Financial Protection Bureau, part of a Republican revolt against the agency that began with GOP lawmakers in Congress. Richard Cordray, the CFPB's director, in March asked all 50 states to sign a memorandum of understanding designed to protect confidential information shared among states and the bureau. To date, only 12 states - all but one with Democratic attorneys general - have signed, according to the bureau.

Oklahoma Attorney General Scott Pruitt and others have said they are declining to sign the agreement because of legal objections to the law that created the consumer bureau, the 2010 Dodd-Frank Act.

CU Fined For Making Loan

MOLINE, Ill. -The Illinois Department of Financial and Professional Regulation, Division of Financial Institutions has fined DHCU Community CU $10,000 for violating rules on granting an unsecured consumer loan. The $350,000 unsecured loan went to a member of DHCCU's executive management staff on Sept. 21, 2011, but the maximum unsecured loan limit for a credit union with total assets in excess of $100 million is $40,000. Terry Brahm, president of DHCU, told Credit Union Journal the loan has been repaid. "We disagreed with the department's classification of the loan," he said. "The loan has been paid and there has been no loss on the loan."

O'Connell Named CEO At North Island

SAN DIEGO - The $1.1-billion North Island Credit Union has named Stephen O'Connell, chief operating officer at nearby California Credit Union, as its new president and CEO.

O'Connell will succeed John Tippets, the former president of American Airlines FCU who, at NCUA's invitation, took over and turned-around the then-troubled North Island CU in 2009 and has since led a turnaound in its operations.

News Briefs

Ex-Assemblyman Is Charged

LOS ANGELES - Carl Washington, 47, a former democratic state Assemblyman for California's 52nd district, has been arrested by FBI agents on charges he defrauded First City CU, LA Financial CU and Farmers and Merchants Bank out of tens of thousands of dollars by falsely claiming to be the victim of identity theft. Washington, who most recently was a Los Angeles County probation officer, has been charged with three counts of bank fraud and three counts of making a false statement to a federally insured financial institution.

The arrest was part of a year-long internal review into alleged staff misconduct that has resulted in more than 40 arrests since the start of this year, officials said.

Police: 'Manager Stole $145K'

JACKSON, Mich. - A former branch manager at EECU has been charged with embezzling about $145,000 from the credit union. Renee Mainstone, 45, is accused of using her position as a manager to take money from member accounts for her own use. The alleged thefts were discovered through the credit union's internal controls, according to EECU. When the credit union discovered the theft Mainstone was fired immediately. She had worked as branch manager for about three years.

CU ONE Accepting Matricular

FERNDALE, Mich. - Credit Union ONE has begun to accept the Matricula Consular de Mexico card as a form of identification for Mexican nationals to establish membership at its southwest Detroit branch. The Matricula card is primarily issued to Mexican citizens residing outside of Mexico. Credit Union ONE has operated a branch in southwest Detroit for decades, and recently determined access to financial services for Mexican citizens living and working in the community was not being met due to issues related to IDs.

75-Inch TV is Given Away

DALLAS - Advancial FCU ended its 75th anniversary celebration with a drawing for a 75-inch TV. Members had to sign up for e-statements to qualify for the drawing. Employees of the $1-billion credit union also participated in the celebration, with the credit union awarding one of them a TV, as well.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.