THE 'tude

I’ve been working with credit unions for almost two decades. As a marketer. As a public relations guru. As a business development expert. I enjoyed my time. But over that time the one message I heard over and over again from leaders in Credit Union Land was this: “Do not poke the bear."

There has been a lot of discussion over the last couple of years regarding Disparate Impact and Fair Lending Testing, specifically in regard to the NCUA requiring credit unions to prove they are not treating members differently based upon being a member of one of the protected classes.

If you asked either of the lobbyists for the two major credit union trade organizations, they would tell you that getting a special interest bill passed in Congress is not an easy task. That task has been more difficult the last six years due to a divided Congress unwilling to give and take on important issues.

Some notes from the road, from former Sand States turned All-is-Now-Grand States, after recent trips to Las Vegas for CUNA Marketing & Business Development Council meeting and Phoenix for MountainWest CU Association annual meeting (and airports inbetween). But first a quick note on something that is clearly not acting its age.

The Seven Cooperative Principles make clear credit unions’ obligations as financial cooperatives, so the revised, proposed risk-based capital rule (RBC II) is a test of the our industry’s willingness to act on the vital second principle – self-governance.

Counterfeit credit card artists know the score. EMV chip cards are coming to the United States, and very soon the business of duplicating plastic – an $11 billion business – will be all but extinct. Yet, these nimble con men and women are not about to give up on the lucrative payment fraud business. Instead, they will redirect their energy, focusing it squarely on the digital universe.

At CUNA Mutual Group, we have served credit unions and their members for 80 years. We know that supporting credit unions means a commitment to empowering the financial security of the millions of Americans they serve.

Consumer lenders are missing the mark far more often than they are hitting it when it comes to collecting and using the right data in order to make decisions about a borrower’s creditworthiness. Credit decisions should not simply start and end with a FICO score.