The Boardcast

Credit Card Differences

Consumer debt and its stranglehold on individuals has been in the news often during 2008/2009. Last month President Obama signed the Credit Card Accountability, Responsibility and Disclosure Act (CARD) of 2009. The focus of this bill provides an insight into the ways in which financial institutions have been profiting from the widespread circulation and use of credit cards. CARD bans unfair and hidden rate increases. In particular, it restricts rate increases which are retroactive due to late payments. Credit card companies can still make introductory offers which entice consumers with low temporary rates that sky rocket but the lower rates must remain in effect for at least six months. The central focus of this legislation is clear and understandable disclosure that explains terms, interest rates and fees.

UFirst FCU has a 3 pronged approach to our products and service including our credit card: Savings, Financial Literacy and Sensible Credit. Providing members with a reasonable source of credit to achieve their financial goals has always been part of the credit union promise. The recent CARD legislation is designed to return to a source of consumer credit that our credit union has always provided. Our low inrerest rate of 9.9% has never changed. Unlike many credit cards this rate has remained the same since our credit card product was introduced. UFirst is committed to offering products and services that are designed to improve rather than weaken the financial position of our members.   

UFirst Staff and Board Travel to Albany

Once a year representatives from the UFirst Staff and Board of Directors travel to Albany for the Credit Union Association of New York’s Governmental Affairs Conference. This year the conference took place May 18th to May 20th a block from the state capitol. UFirst joined other credit unions from throughout the state to discuss legislation which would benefit credit union members and New York State residents and municipalities.

Attendees were briefed on the 2009 Legislative Agenda which includes initiatives that would open credit union services and products to more New York State residents. One piece of legislation that was discussed was opening deposit services to local municipalities and school districts. Many volunteer organizations, municipalities and school districts have expressed a desire to be able to use credit union for deposits and other services. According to the Credit Union Association of NY, “Currently, only commercial banks are permitted to accept municipal deposits. The fiscal crisis in for-profit banking makes the depository choice more urgent.” The Association is working with credit unions, lawmakers and potential depositors to change this law.

The current fiscal crisis has been at the forefront of debate and legislative action. Legislators like Senate Banking Committee Chair Senator Brian Foley (District 3 - Suffolk County), Assembly Banking Committee Chair Darryl Towns (District 54 - Kings County) and Minority Leader Senator Dean Skelos (District 9 - Nassau County) commended credit unions for maintaining and continuing their high standards of member services. Credit Unions have been recognized as being part of the solution to help solve the nation’s economic problems. These legislators joined their colleagues in the senate and assembly in celebrating the work of credit unions with a special citation and day in our honor on May 18th, 2009.

Representatives from UFirst and other North Country credit unions were very pleased to have the opportunity to speak with our own representatives and their staff. Senator Betty Little took time out of her busy schedule to meet us outside the Senate Chamber. We provided her with information on the work and concerns of credit unions in her district. Assemblywomen Janet Duprey and Teresa Saywood welcomed us to their offices through staff people who took notes and received briefing information on the legislative agendas of credit unions in their districts.  Later in the evening Senator Little and Assemblywomen Duprey and Sayward met us at a reception held at the Empire State Plaza.

U First Credit Union members,staff and board appreciate the support our legislators give to credit unions in their service to the North Country.

 

The “It Could Be Worse” Department

My grandmother was a young adult with a family when the depression began in 1929. Her husband went from job to job and finally settled into a position helping his father-in-law run a fish market about 25 miles from New York City. It was during this time that my grandmother began using an expression which became one of her mantras. Pop’s (my grandfather) employer would reduce his work hours and she’d say, “It could be worse”. Car tires were unavailable causing the family to have to sell their primary means of transportation and she’d shake her head and observe, “It could be worse.” This became her strategy to overcome adversity and put her life and what was happening around her in perspective. Some might think that this life view disregarded the acute difficulties of others and showed a lack of empathy. Far from it. My grandmother used this saying throughout her life as an expression of gratitude and a signal to her family that they were not the only ones suffering deprivation and hard times. “It could be worse” was also used as a reminder that helping others was a responsibility that she embraced.

 

The economic crisis we have been experiencing has brought my grandmother's expression to mind. Here are some news items from throughout the world that remind me “It could be worse”:

Independent.ie quoting a study done by a European Union Commission predicts that Ireland is headed for an unemployment rate of about 16%.

The NASDAQ site reports that 13 out of the 16 countries having the highest GDP to debt ratios are in Europe.  

The largest parking lot on earth can be found off the coast of Singapore. The graphic above was taken from vesseltracker.com’s Google Earth file. It represents all the cargo ships idling off the coast of Singapore. According to International Economy magazine, 

“The world's busiest port for container traffic, Singapore, saw its year-over-year volume drop by 19.6 percent in January 2009, followed by a 19.8 percent drop in February. As of mid-March 2009, 11.3 percent of the world's shipping capacity, sat idle, a record.”

Money Mystification Part Three (Adam Smith Meets Common Craft)

One of the discoveries I've made on the internet are courses and other educational sites sponsored by colleges and universities throughout the world. It seems like most prestigious schools now have online courses open to the general public that cover almost any topic of interest. A series that has caught my attention is a blog Econlog and the corresponding podcast EconTalk which focus on economics. The blog and podcast are sponsored by the Liberty Fund, Inc., which is dedicated to funding the study of economics. Interviews and articles feature prominent economists and historians throughout the country. A new feature on both the blog and the podcast is an Econtalk Book Club. The book club provides listeners with an opportunity to join Robert Russell and Dan Klein, professors at George Mason University, in reading one of Adam Smith's most famous works "The Theory of Moral Sentiments". Adam Smith was an 18th century philosopher and the first economist. His work provides the basis for most of our current theories of economics. Econtalks guided reading has made it possible for me to begin to understand Smith's work. Podcasts can be saved and repeated. Listening to Adams Smith's complex ideas, with the opportunity to repeat the listening, has helped to expand my knowledge and understanding of economics.

The first two parts of Money Mystification covered how gathering facts from our own lives and from books, articles and web sites can help us formulate our approach to money management. Gathering facts isn't enough, though, we need time to reflect and synthesize this information so that it can be used in our own circumstances. Most of us do not easily find reflection time in our busy schedules. Work and family demands give us little time to weave facts into understanding and understanding into practical application. Using current tools to help simplify the complexities of fiscal concepts developed by others can ultimately help us to avoid the pitfalls which have become so common today. 

Here's a short video from a company called Common Craft which has synthesized complicated ideas into an entertaining format. These short videos are available both on their site and on You Tube. Here is the one that they designed to explain Saving Money .     

The Boardcast Is Back

There are times when life's activities and concerns get the best of you. That has been the case for me during the last month. The Boardcast has had to take a back seat to my full time job and other daily responsibilities. I value my time as a credit union blogger and apologize for this hiatus. I'll do my best not to return to a more regular posting schedule.