December 3, 2008
MA Credit Union Growth Attracts Media Attention
As reported in e-Weekly last week, Massachusetts credit unions have seen significant growth through the first three quarters of 2008. This positive economic news contrasts sharply with the stories that have been carried about the for-profit banking sector.
A press release sent by the League pointing out that contrast attracted the attention of the Boston Herald and Boston Radio station WBUR-FM. Each of those media outlets carried stories highlighting the growth of credit unions through the first three quarters of the year.
The Herald article quoted League President Dan Egan who explained that credit unions, by sticking to sound business practices, steered clear of the subprime mortgage meltdown. He went on to say that problems in other parts of the financial services industry had sparked a “flight to safety” which brought consumers to credit unions.
Retail Delivery Network Kick-off Meeting December 16
The League’s newest professional network, the Retail Delivery Network, will hold its inaugural meeting on Tuesday, December 16 at the Doubletree Hotel in Westborough, MA. This group is designed to bring together those individuals that have responsibility for managing the many aspects of the member interface function.
The meeting on December 16 features two outstanding presenters. Mark Sievewright, senior vice president of business development for FiServ, will address merging technologies and member centricity. Ray Springsteen, senior vice president, business development, Callahan and Associates, will speak about best practices in managing the “heart of your credit union.”
The registration fee for this network session is $99 for network members and $199 for non members. For more information about registration for this event or membership in the Retail Delivery Network, please click here.
Senate Bankruptcy Hearing in RI on Thursday
The Senate Judiciary Committee has scheduled a field hearing Thursday, December 4 on "Credit Cards and Bankruptcy: Opportunities for Reform." The hearing will be conducted at Rhode Island College in Providence and will feature a panel of the following four witnesses:
- John Rao, an attorney with the National Consumer Law Center;
- U.S. Bankruptcy Court Judge Thomas Small, from the eastern district of North Carolina;
- Robert Lawless, a professor of law from the University of Illinois; and
- Associate Professor of Law John Chung, from Roger Williams University.
Ryan Donovan, vice president of legislative affairs for the Credit Union National Association, said the hearing can be viewed as a harbinger of things to come in the 111th U.S. Congress. "We fully anticipate Congress will take a very close look at the bankruptcy code. While the focus of the bankruptcy discussion in Congress most recently has revolved around mortgage cramdown proposals, this hearing and others indicate there may be an appetite to go further in the new Congress," Donovan said.
In October the Judiciary panel conducted a two-part field hearing titled "Keeping Families in Their Homes: How to Prevent Foreclosures" in Pennsylvania. Part I was held in Pittsburgh, Part II in Philadelphia.
CUNA: New Leave Categories for Service Members
Under statutory changes that go into effect January 16, credit unions and other employers must provide two new forms of military family leave.
The National Defense Authorization Act of 2008, signed into law by President George W. Bush in January, established the following additional family leave policies for military service members:
- "Qualifying exigency leave," which provides 12 work-weeks of leave under certain circumstances, such as short-notice deployments, military events or activities, and post deployment activities; and
- "Military caregiver leave," which provides 26 work-weeks of leave to care for a covered service member with a serious injury or illness who is the employee's spouse, child, parent or next of kin.
The Department of Labor, in issuing a final rule to implement the 2008 rule changes, also updated the 1993 Family and Medical Leave Act (FMLA) employee notice provisions. The new rule covers standard posted notices, as well as individual notifications to an employee regarding such things as leave eligibility and conditions of leave.
The rule also updates the medical certification requirements for FMLA leave, such as allowing an employer representative to contact, with limitations, an employee's health care provider directly about certification and clarifying the process for handling incomplete or insufficient certifications.
Credit unions should consult their human resources counsel for a detailed analysis of how this new rule will impact their institutions, advises the Credit Union National Association (CUNA) compliance department. However, it can be assumed that credit unions will need to review and update their FMLA policies and procedures and FMLA-related forms/resources to reflect these changes.
Also, CUNA notes, credit unions must be prepared to provide adequate training on the updated rule to management and supervisors where appropriate.
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