AVCU's Newslines Express for Friday, July 1, 2016

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for Friday, July 1, 2016

CUNA to Join Data Breach Lawsuit Against Wendy's
Post Receives 2016 CU Hero Award at ACUC in Seattle
Four Key Points at Heart of CUNA's Developing Awareness Effort
Heritage Family CU Announces 2016 Scholarship Winners
Strategy Symposium Added to AVCU Special Events Site
New Biz Kid$ Video Showcases Impact of Youth Fin Ed Program

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CUNA to Join Data Breach Lawsuit Against Wendy's

The CUNA Board decided this week that the national trade association will join a data breach lawsuit against Wendy's. The fast food chain has been accused of negligence in protecting customer credit card information and being liable for a massive breach of that information. (CUNA News Now, 6/29/16)

The financial costs caused by Wendy's "deficient data security approach" have been borne primarily by credit unions and other financial institutions that issued the payments cards that were compromised, CUNA will allege in its complaint. Those costs include, but are not limited to, canceling and reissuing compromised cards and reimbursing the cardholders for fraudulent charges associated with the breach.

Industry sources estimate the fraudulent charges have been even greater than in other recent data breaches, like Target and Home Depot. CUNA surveys found credit unions alone were hit with nearly $60 million in costs after Home Depot’s 2014 data breach and $30.6 million after Target’s 2013 data breach.

The first Wendy's suit was filed in the Western District of Pennsylvania by First Choice FCU, New Castle, Penn. The credit union seeks to recover the costs incurred related to the breach. Other credit unions followed suit with additional cases filed in the Western District of Pennsylvania.

The Wendy's breach occurred from October 2015 through March 2016 although some reports indicate that it may have lasted into April.

Post Receives 2016 CU Hero Award at ACUC in Seattle

Steve Post, whose 35-year credit union career included more than two decades as president/CEO of VSECU, received Credit Union Magazine’s 2016 Credit Union Hero of the Year during the Opening General Session of the America’s Credit Union Conference in Seattle.

“In addition to being really surprised, I’m very honored to receive this recognition,” said Post. “I have always felt there are many, many heroes at work in the credit union industry. And I’m honored to be counted as one of them.” (CUNA News Now, 6/26/16)

The Credit Union Hero of the Year award recognizes individuals who serve as examples for the entire movement through their service, advocacy, and commitment to credit union ideals. Post was one of four respected finalists for the award and was selected via an online vote by readers of Credit Union Magazine.

Post retired in 2014 after 24 years at VSECU. He began his credit union career at White River Credit Union as a part-time collections officer before moving up to manager. Known for his collaborative style, Post drew nationwide attention when he took a stand against the banking industry in 2012, challenging a Vermont statute that allowed only banks to use the term “banking.”

In a Credit Union Magazine profile article published when he was announced as an award finalist, Post said, “As much as I’ve done over the years to differentiate between what credit unions and banks do and how they do it, our members have always felt they’re doing their ‘banking’ with us." "We preserved our right to describe our services as banking. But we don’t portray ourselves as a bank in any way. We use the verb, not the noun,” he added.

Four Key Points at Heart of CUNA's Developing Awareness Effort

CUNA announced on Tuesday that it is developing a new awareness initiative which will help align credit union messaging nationwide, complement and strengthen ongoing marketing and awareness efforts, and open new opportunities for credit unions to grow market share and advocacy power.

Teresa Freeborn, president/CEO of Xceed Financial CU, El Segundo, Calif., and chair of the CUNA Creating Awareness Advisory Group, explained that rather than a top-down national advertising campaign, “this will help our leagues and our individual credit unions talk about the credit union difference in a very sustainable and a very long-term manner."

“The opportunity is greater today than it has ever been to take advantage of this opportunity and close the awareness gap,” Freeborn added. “CUNA can lead us, and we’re grateful they stepped up here. But we all need to be involved and work together to make sure everyone knows the credit union difference. That’s how we win.”

The 16 years of research, more than 16,000 interviews, and 12 statewide polls that will shape messaging for the initiative, much of which is presented in this video, revealed that when credit unions focus on four core messages, they'll increase member loyalty and drive consumers to the movement. Although the four core messages are well known to those in the industry, the average consumer reacts very positively when they understand that credit unions:

are different from banks;
are not-for-profit;
are member-owned; and
return their earnings to members through lower loan rates, fewer and lower fees, and higher savings rates.

CUNA Chief Strategic Communications Officer Douglas Kiker presented the facts about credit union awareness and cited research data that illustrate the opportunity:

82% of bank-only customers said they would be interested in moving at least one account to a credit union;
68% of credit union members said they would do more business with their credit unions; and
88% said they would pick credit unions over banks in a public policy fight.

Heritage Family CU Announces 2016 Scholarship Winners

In a media release this week, Heritage Family Credit Union (HFCU) congratulated the recipients of its 2016 scholarship program, the mission of which is to support a deserving high school senior who intends to pursue further education in an accredited undergraduate program at a college, trade school, or university.

Four scholarships of $1,000 each were available to all seniors attending a high school within the credit union’s field of membership. This year’s recipients are:

from Rutland High School Jordan Del Bianco
from Fair Haven Union High School Claudia Cousineau
from Middlebury Union High School Chris Grier
from Woodstock Union High School Kristin Ramsey

Pictured with Del Bianco are HFCU's CEO/President Matt Levandowski and VP of Organizational Development & Training Peg Lucci (click image for larger version).

Strategy Symposium Added to AVCU Special Events Site

We've added a page to our Yearbook website's Special Events area for the 2016 Strategy Symposium taking place Sept. 15-17 first announced in last week's Newslines Express. AVCU and the CU League of Connecticut are co-sponsoring this event at the Sheraton Portsmouth Harborside Hotel where rooms in our block can be booked now at the special rate of $209.

The event page includes a full bio of Symposium Facilitator Jay Johnson from Callahan & Associates, as well as a planned schedule and outline of the four discussion areas that will be presented and discussed:

Talent / Leadership Development;
Omni-Channel Delivery & Evolution;
Financial Technology & Economics; and
Business Intelligence / Big Data

Each topic will be previewed by Johnson during Friday morning's opening session, then be followed by a "deep dive" presentation by an expert in that field. Once the roster of expert presenters is finalized, AVCU will update the page with names and bios.

"The symposium offers personnel from Vermont credit unions a unique opportunity to meet and strategize with their counterparts from Connecticut and across New England," says AVCU President/CEO Joe Bergeron. "We designed the event to be an enhancement to the strategic planning process conducted by member credit unions annually. We believe collaboration like this between state trade associations can deliver significant benefits to our credit unions and the members they serve," he added.

New Biz Kid$ Video Showcases Impact of Youth Fin Ed Program

The National Credit Union Foundation (the Foundation) has released a new video about Biz Kid$ to showcase the impact of the national youth financial literacy initiative. Created by Andy Janning, the video features testimonials from staff who have utilized Biz Kid$, as well as highlights of the program and students who have been influenced by program (click image for video).

It also spotlights a Biz Kid$ Financial Education grantee, the Cornerstone Credit Union Foundation, who used their grant to fund their Biz Kid$ Entrepreneur Contest. Every year, the Foundation distributes Biz Kid$ Financial Education Grants, which are used to fund innovative programs that improve the financial education of youth through the use of the Biz Kid$ program.

“Biz Kid$ is a superb example of ‘edutainment,’ where it not only entertains but educates youth in a meaningful way,” said Danielle Brown, Foundation Director of Development and Donor Relations. “As this new video demonstrates, Biz Kid$ informs, educates, inspires and motivates kids of all ages to learn about money, credit, taxes, business, and becoming young entrepreneurs. More importantly, Biz Kid$ helps youth discover their passion, see the opportunities around them and take action using real world examples of how simple ideas can change our world.”

Biz Kid$ is designed to engage young people and help them develop life skills in the areas of financial literacy and entrepreneurship. The initiative includes an Emmy award winning television series, free classroom curriculum, outreach activities, and a website targeting kids 9-16 years old. Biz Kid$ uses the power of television to teach students how to use credit wisely and reinforces the importance of budgeting, saving, and giving back to the community.

Management Minute, Calendar, Jobs, and Updates
Recent Headlines from Management Minute

WalMart In Canada Will No Longer Accept VISA
CUNA Seeks Prioritized NCUA Help For CECL Execution
No Changes To CU Tax Exemption Proposed in Agenda Paper

Upcoming Education Calendar
Please Note: The AVCU offices will be closed on Monday, July 4 in observance of the Independence Day federal holiday.

Supervisory Committee Academy Webinars
- 7/12 "5 Things the Supervisory Committee Needs to Know About Compliance" w/ David Reed
- 8/10 “You’ve Done the Audit. Now What?” w/ Susan Landauer
Credit Union Webinar Network Webinars
- 7/6 Treasury Services: New Delivery & Service Models for Cash Management
- 7/7 Your Borrower Has Died: Actions to Take, Mistakes to Avoid
- 7/11 Understanding the New Overtime Rules Effective December 1, 2016: Critical Budgeting Issues & How to Determine the Appropriate Hourly Rate
- 7/12 Director Series: Board Oversight & Responsibility for ACH Risk
- 7/13 Manufactured & Mobile Home Lending Standards & Eligibility: Origination, Underwriting & Loan Closing Guidelines
- 7/14 Call Report Preparation for New Preparers & Reviewers
- 7/18 New FFIEC Guidance on Mobile Financial Services: Evolving Delivery Channels vs. Risk Management Expectations
- 7/19 Debt Collection Series: Advanced Collection Concepts, Compliance & Risks
- 7/20 Analyzing & Managing Escrow Accounts, Including Shortages, Surpluses & Deficiencies
- 7/21 Countdown to Same-Day ACH: Deadline September 23, 2016
- 7/26 Frontline Series: Risks & Precautions for Endorsements & Other Negotiable Instruments
- 7/27 Understanding Letters of Credit: Rules, Responsibilities & Liabilities
- 7/28 Overdraft Outlook: Litigation Lessons, Avoiding Violations & Best Practices

Employment Opportunities
Mortgage Servicing Assistant, Heritage Family Credit Union (NEW Today!)
Mortgage Underwriter, Heritage Family Credit Union (NEW Today!)
Call Center FSR, Heritage Family Credit Union (NEW Today!)
Chief Executive Officer, Vermont VA Federal Credit Union (3rd and final post)
Application Support Analyst, New England Federal Credit Union (3rd and final post)
Call Center Representative (2 positions), Vermont Federal Credit Union (3rd and final post)
Positions previously posted in Newslines Express are available here.

Share With Us - We're always looking for pictures, press releases, and news that helps tell the story of why credit unions in general, and yours in particular, are so special to Vermont consumers. Send submissions to JohnCote@vermontcreditunions.coop.

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