A Special Message to Our Clients - There's No Such Thing as "Over-Disclosure"
by Ron Daly
With the Credit CARD Act of 2009 going into effect today, the talk in the industry is all about disclosure. CUNA News Now published this article "21-day rule: CUNA urges CUs 'document everything'" What's the best way to tell your members about the changes in credit card rules and the changes in your policies as a result of the CARD Act?
The Answer: ANY way you can tell clients about the new regulations is a great way to tell clients about new regulations.
The example below is from Belvoir FCU. Click the thumbnail to see the full size image.
For our clients: We want to let you know that we're here to help and that there are several ways we can increase awareness for your members - the way we did for Panhandle Educators (click below to see example)
We can add a notice to your eStatement notification emails, to your Customer Communication Center splash pages, we can load a permanent notice inside the available statement library, or we can even send a special notification through the ARB to your mailing list. The statement needs to be as clear as possible, and the more members see it the better they'll understand the new regulations.
For NON-Clients: We're more than willing to get you set up with a special one-time ARB email for your specific mailing list. Just give us the addresses and we can get the word out for you.
You and your credit union/financial institution are going to need to act fast to spread the word. Take advantage of the many channels you use to communicate already to be as specific as you can about the new regulation.
Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds.
Catchy!
The Postal Service has been around a long, long time. Their unofficial motto, above, has always been a reminder that the mail will come through.
Unless, of course, they don't.
This story from MSNBC (click to read) says that the USPS wants to cut another day of delivery out of their schedule. They're currently staring at a $6 billion shortfall, and hope that not delivering will help them stave off collapse. Oh - and there'll probably be another postage hike.
So, let's boil this down a little more. You'll be sending mail at a higher price. It's going to take twice as long (or longer) to get where they're going. And don't count on that Saturday run down to the post office - they're not there.
Not convenient. Not fast. Not cost effective.
I can promise you that email doesn't "close". Send an email, it'll be where it's going within moments. Send an email that's styled how you want with links to offers, you'll start seeing results. And email won't break your budget.
Want to go to Inauguration Day ceremonies AND save the economy? Take advantage of Omni Hotels' "Commander-in-Chief" package in DC and get tickets to the event, a makeover, presidential cologne and...get this...a PUPPY! Sign up now!
And your "this counts as news" story of the week?
Police post want ad for people to become snitches. From MSNBC.com.
They'll Be Runnin' from Collectors When They Come! The next hill to climb
by Ron Daly
Ready for some good news in all this doom-and-gloom? We've turned a corner in the financial crisis!
Ready for the bad news? It's the corner of Wall Street and Main Street.
What does that mean? Not everyone had stocks. Not everyone had thousands/millions/billions tied up in the market. Not everyone has 401k's and retirement packages.
But doggone if just about everyone has a credit card.
And now, banks and credit card companies are shielding themselves against bankruptcy by calling in the tab, so to speak - massive rate hikes, lowering of credit limits, and seizure of assets.
On Greed and Fear: How Credit Unions get the most out of the crisis.
by Ron Daly
Came across an article today written by Warren E. Buffett. Buffett knows money, I think that's safe to say. Read his very good article here.
Anyway, he said something in his op-ed piece that really stuck with me:
"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."
This was one of those things that, on the first read, was smart sounding. But reading it again gave me a clarity I hadn't expected. It made me think about our industry and how we SHOULD be looking at the opportunity presented. Now, more than ever, attention is placed on the stability of credit unions versus big banks. In the midst of the big earning days of low-rate loans and bum securities, banks were greedy and CUs were fearful...fearful of loaning and mortgaging irrational sums. Naturally, lending money to people who couldn't afford to pay it back turned out to be a bad idea.
So now comes the time where CUs are thriving and banks are scrambling to make up the difference. Is this the time to drop marketing? Is this the time to be weak-willed when it comes to drawing members? Quite the contrary.
Now's when CUs need to:
1) Market Hard 2) Consider their next round of member rewards and incentives 3) Become the "Bull" of finance, not the "Bear".
You are worthy of attention, CUs - you made the right decisions at the right time and you're getting praised for that. Now's your chance to be greedy when the other financial institutions are fearful.
Special Report - The deep breath before the plunge: What you need to read, what you want to know
Our regular contributors offer good reads regarding the Financial Meltdown.
from Ron Daly:
"Frankly, there's no better way to put this than CNN did in this explanatory article (Click Here). It shows causes, thoughts, solutions and suggestions that we as homeowners, workers, families and people with credit need to consider. It's 9 pages worth of very sharp, very smart information."
from Greg Crandell
"There are few things right now that concern me more than mortgages...the (Wall Street) Journal just reported one in six homes is "under water" - meaning the mortgage is more than the home is worth now (Click Here)."
Shoot First, Ask No Questions, Offer Blind Opinion
by Ron Daly
Well, it's official: the economy stinks.
Not that anyone with half a brain (or considerably less) couldn't see it coming. But things get really rocky when the Dow starts to plummet and the banks all fail and the government offers a "Sweetened Bail-Out" package...you get the idea.
But then some of my employees were chatting and had heard that, throughout the web, things were looking grim. There was this story from CNN which is terribly depressing - and with the word "depressing" comes the word "depression".
Yes, depression. As in The Great Depression. As in "Brother, Can You Spare a Dime?" depression. Which 60% of Americans think we're facing. And that means 60% are overreacting.
You might not agree with me. You might think we're doomed. But the Wall Street Journal doesn't think so...which is to say the Nobel Laureate who authored this article doesn't think so. The LA Times seems to argue that depressions in economics are inevitable, but another "Great Depression" is highly unlikely. People in Congress and in the Media have been yelping about depressions and recessions and bailouts and the plummeting market and that's got you worried. You should be worried, but you shouldn't be terrified. You should be ACTING on good information given to you by informed market professionals. Don't sell everything you own. Don't give away all your possessions and run off into the desert. Just think carefully and don't get overwhelmed by people telling you we're all doomed.
:: Credit Union News :: The stability of the CU industry has been a hot topic for many online news sources recently. The stories that follow extol the virtues of credit unions in shaky financial times:
Be Upset...Be Very Upset: Bankers come forward to CNN about predatory lending
by Ron Daly
As the Financial Crisis looms and the bailout comes to life, the amount of damning evidence against finance companies continues to grow. This story, from CNN (click here for print), comes from two bankers who were pressured by Bank of America to drive cardholders deeper and deeper into debt.
Watch the video to see the story, or click the above link to read.
