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Posted: Mar 30, 2016
Categories: Credit Cards
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Author: Barney Moore

Torrance Community Credit Union recovered 100% of its charge offs for 2014

Charge offs on credit card balances have been on the decline since the peak of the great recession.  But, they still represent a bottom line reduction to income that are avoidable when properly managed by the credit union with cooperation from the borrower.  One credit union, Torrance, California-based Torrance Community Credit Union utilizes four strategies when it comes to charge offs.  Their approach, which starts with preventing charge-offs, is working. The 7,600 member credit union managed to recover 100% of its 2014 credit card charge-offs according to a recently published article in CU Times.

 

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Posted: Mar 29, 2016
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Author: Lou Grilli

Loyalty programs are undergoing changes on all fronts. American Express announced a new mobile app that will allow membership rewards to be used at the POS, presumably at a devalued exchange rate. Starbucks changed their long-standing rewards program by issuing “stars” based on dollar spend, rather than the number of transactions, causing some consternation among Frappuccino and Oprah Chai aficionados. The way credit and debit card issuers who offer loyalty programs view rewards is also coming under scrutiny.

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Posted: Mar 15, 2016
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Author: Paul Castner

 

New Payment Technologies.  Fighting Fraud. Interest Rates.  CU Loan Growth.

Tom Davis, CSCU’s Sr. Vice President of Finance and Technology, was recently interviewed by Mike Lawson of CU Broadcast during GAC in Washington, D.C.  Covering a wide range of topics on what credit unions should be prepared for in 2016, Davis offered his expert insights on emerging payments and what to expect in the ongoing fight against fraud.  Additionally, he says to keep an eye on interest rates and that we will continue to see loan growth for credit unions in 2016.

 


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Posted: Mar 9, 2016
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Author: Bill Lehman

It’s not uncommon for credit unions to overlook existing cardholders as a significant opportunity to help stimulate portfolio growth and increased profitability.  But, it is more common for credit unions to equate portfolio growth and increased profitability solely on new account acquisition.  However, it is easier and more cost effective to leverage your existing cardholders for increased portfolio growth and profitability than to acquire new accounts.    

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Posted: Mar 4, 2016
Categories: Regulations
Comments: 0
Author: Lou Grilli

Compared to banks, credit unions have not been a big player in the small business loan segment with $56 billion in Member Business Loans (MBL) compared to $585 billion as tracked by SBA.gov. But that is about to change, now that the NCUA voted to strip a number of restrictions on MBL.

Credit union commercial loan growth has been steady during the 15 years examined here. More importantly, it has been resilient during the last two recessions according to Filene Research, suggesting that credit unions can buoy both lending growth and, as a consequence, overall business activity. To hammer this point home, at the 2016 CUNA GAC, Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB) stated, “Credit unions did not underwrite the bad loans that sank the housing market. On the contrary, you upheld sound underwriting standards to protect consumers, even as it cost you customers and market share went to financial predators that circled those troubled waters”.

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