NAECU Blog

Fake Checks

2012-01-30T13:04:00.002-06:00

Fake checks continue to circulate throughout the country. How can you spot a good check from a bad check? Not easily. The technology of printers today allow thieves to print off good copies of legitimate checks. This is why check holds on deposits are much more common now.

The best method of identifying a possible counterfeit check is by looking at the reasons on why the check was received in the first place. Strangers don't send checks for thousands of dollars to other strangers for no reason. If a check recipient is asked to send part of the check proceeds back to the stranger for any reason, there is a 99.9% chance that the check is a counterfeit item. Mystery shopper programs, sweepstakes and lottery contests, inheritance gifts from long lost (and unknown) relatives, payroll processing job offers using a consumer's personal account, and Internet sales where the buyer sends more than is needed for the purchase price are all examples of scams involving counterfeit checks.

Victims of these scams often say later that they had a bad or uneasy feeling about the fake checks being negotiated. They convince themselves though that the official check and overnight mail package could only have come from a "legitimate" entity. These same victims also refer to official looking websites and mail correspondence that looks like the real thing. Criminals can copy and reproduce anything. They try to build confidence in the victim's mind that the offer being presented is the real deal. Sadly, greed is also a contributing factor to many of these fake check scams as the victims are promised easy money for their efforts.

Don't be a victim. Ask your credit union or financial institution to research the item and be sure to provide all information about how the check was received. Depositing a counterfeit check item is a crime so be sure that all check items are legitimate BEFORE they are deposited.

The website below provides excellent resources and information regarding fake check scams;
http://fakechecks.org/

Scholarship Money from NAECU

2012-01-09T15:51:00.004-06:00

Our annual scholarship contest is underway with $1,500 being available for our 1st place winner and $750 being available for our 2nd place winner. The scholarship application is available at any office or online at the link provided below. The deadline for submitting the completed scholarship application is Monday, April 2, 2012. (The form states April 1st but since April 1st falls on a Sunday we will accept applications through the following day).

The essay portion of the scholarship this year will be a typed essay of at least 250 words on "How can financial institutions improve their value to consumers?".

We would encourage our members who are graduating high school this semester to apply for the available scholarship money. Keep in mind that all students of public or private schools in Madison, Morgan, or Limestone Counties are eligible for credit union membership with North Alabama Educators Credit Union.

Best of luck to all scholarship candidates! Here is the credit union page for additional information and the scholarship application;

http://www.naecu.org/news/scholarship.html

Car Buying Tips

2011-12-28T14:37:00.003-06:00

Buying a new or used vehicle is a major transaction for most consumers. Decisions made while buying a vehicle can impact the owner for many years to come. Shopping smart is good for any purchase but it is especially beneficial when buying a vehicle.

The high cost of vehicles makes it absolutely imperative that buyers do their homework BEFORE closing a deal on a new or used vehicle. If buying a new vehicle, find out what the invoice price is for that vehicle and what the cost over invoice is normally charged for the vehicle being considered. The sticker price on the window, or retail price, should not be used as a bargaining point for what the sale price should be. Consumer Reports and Edmunds are good resources for determining a fair price on a new vehicle. NADA and Kelly Blue Book are good resources for used vehicle pricing. Again, the "average retail" price is not the price value that consumers should be negotiating from. A fair price on most used vehicles would be splitting the difference between the "average retail" value and "average trade-in" value of the vehicle being considered. For example if the "average retail" price is $15,000 and the "average trade-in" value is $11,900, a fair sale price would be $13,450 for that particular vehicle.

Price negotiations for purchases and any trade-ins should be held mutually exclusive. A fair price should be sought for both transactions. Dealers are infamous for providing high prices for trade-ins and then adding the overage amount to the cost of the new purchase. This practice is also what causes many owners to become upside down on their vehicles, meaning that they owe more than the vehicle is worth.

The Credit Union would encourage members to shop our rates and terms first before shopping for a vehicle purchase. Our loan rates are publicly posted on our web site under the "LOAN RATES" tab. It is not uncommon for members to be told by a dealer that our rates are higher than the dealer rate when in reality the opposite is true. We recently had a good credit score member who was quoted a rate of 10% APR at a local dealer when the member was actually eligible for our advertised rate of 2.99% APR. North Alabama Educators Credit Union does have risk-based pricing for loan rates that are based upon the member's credit score. Even our "D" rated credit score members would be eligible for a fixed rate of 8.99% APR!

The fact is that dealers get paid from other lenders to push their financing to buyers. This is why dealers generally don't want members to finance their vehicles with the credit union. North Alabama Educators Credit Union would rather reward our member-owners with lower rates than to pay dealers $200-$300 for an automobile loan. At times, dealer financing may have a lower rate than the credit union especially when the financing is for a new vehicle. The key though is to verify available rates and terms independent of the dealer. Trust but verify is always a good policy to follow!

Merry Christmas from NAECU

2011-12-23T07:50:00.005-06:00

Merry Christmas from your friends at

North Alabama Educators Credit Union.

Best wishes to you and your family

for a joyous and safe Christmas.

Christmas Loan

2011-12-02T14:53:00.002-06:00

If you find yourself coming up a bit short on cash for the holiday season, our Christmas Loan is a nice gift. Qualified members can borrow up to $1,000 at a low fixed rate as low as 5.99% Annual Percentage Rate for a term up to 12 months. Consumers have been doing a much better job of reducing debt and increasing the amount saved throughout the year. The key to borrowing money is try to avoid it if possible. Shopping with your own cash is always more preferable than shopping with someone else's money and paying interest for the use of those funds. If you must borrow money, shopping for a good loan rate is worth the time and effort. Some credit cards, especially department store cards, have increased their finance rates considerably during the economic downturn over the past few years.

Our Christmas Loan will be available through the end of January 2012. The joys of Christmas shopping in December can often be soured by the credit card bills that arrive in January. Our Christmas Loan as well as other loan programs for higher balances could be used to greatly reduce finance charges being paid on outstanding debt.

Members of North Alabama Educators Credit Union who are interested in the Christmas Loan can review the rates and terms available on this and other loans at http://www.naecu.org/rates/loanrates.html.

PTA Members & Students Eligible for Membership

2011-11-21T09:09:00.003-06:00

People often associate North Alabama Educators Credit Union as a financial institution available only for teachers or school employees. While we do serve many school employees in the area, we also offer credit union eligibility to students and PTA members. Specifically, all students living within the Alabama counties of Madison, Morgan, and Limestone are eligible for membership. PTA groups (also PTO's and PTSA's) of our eligible school sponsors are also eligible. The eligible public school systems are Huntsville City Schools, Madison City Schools, Madison County Schools, Limestone County Schools, Athens City Schools, and Decatur City Schools. PTA's themselves can open an account with North Alabama Educators Credit Union. (Some PTA accounts have moved to North Alabama Educators Credit Union to avoid the fees being charged at their previous banking institution).

For PTA officers, membership eligibility in North Alabama Educators Credit Union is a great additional benefit to relay to current and potential PTA members. Consumers have become largely dissatisfied with the larger traditional banking institutions. North Alabama Educators Credit Union is truly locally owned and operated since the credit union is owned by the members who use the services of the credit union. Our members have not seen the rising fees and account restrictions that have been highlighted by the media stories on banking over the past few months.

North Alabama Educators Credit Union would love to provide credit union literature and information to the eligible PTA groups in the area. We have staff available, myself included, who can attend PTA meetings and briefly announce the additional benefit of credit union membership through North Alabama Educators Credit Union. In short, PTA members can save money with an account at North Alabama Educators Credit Union and we can demonstrate specific examples of those savings.

Any PTA officers interested in additional information can send an email to feedback@naecu.org or contact our Market Coordinator at 256-534-2423.

Home Break-ins on the Rise

2011-11-14T14:19:00.003-06:00

A weak economy breeds an increase in criminal activity. The Huntsville Police Department (HPD) and the Huntsville Community Watch Association (HCWA) are trying to get the word out about home break-ins taking place within the City of Huntsville. Similar criminal activity is no doubt taking place outside of Huntsville in the surrounding cities and counties.

Huntsville is reporting that there have been 241 home break-ins between September 30, 2011 to October 31, 2011. People are advised to watch their neighborhoods closely and look for suspicious activity. If you see a stranger backing into a driveway, popping a trunk, and/or wearing a backpack, please contact your local police non-emergency number. In Huntsville city limits, the number to call is 256-722-7100.

Criminals are approaching front doors, ringing door bells or knocking, and if NO answer they are going to the back of the house and kicking in a door to gain access to the home. Common items being stolen include flat screen TVs, laptop computers, and video game systems. These break-ins are occurring between 7:00 AM and 2:00 PM.

If you do see suspicious activity, contact the police and remember to note description information on the people involved (clothing, appearance, race, hair color, gender) and vehicle (color, make/model, tag) if possible.

Unfortunately the upcoming holiday season will most likely intensify criminal activity. Remember to not leave large boxes from new electronics on the street for trash pickup. An empty box from a new flat screen TV only serves as a carrot to a thief canvassing a neighborhood for likely targets.

Hardest Hit Alabama Program

2011-10-31T10:08:00.002-05:00

Earlier this year Alabama Governor Robert Bentley announced the creation of Hardest Hit Alabama (HHA), a new consumer relief program providing $162 million for the prevention of foreclosures in Alabama.

The U.S. Department of Treasury's "Hardest Hit Fund" awarded the $162 million to the Alabama Housing Finance Authority to provide targeted assistance to Alabama's unemployed homeowners. The fund itself was authorized under the Emergency Economic Stabilization Act of 2008.

Eligible owners can receive assistance to pay their current mortgage payments and all other mortgage related expenses, including payments on any subordinate liens, while unemployed. HHA will provide up to 12 monthly mortgage payments not to exceed $15,000, per household.

Alabama homeowners who receive unemployment compensation benefits may apply. To qualify, applicants must have a total annual household income of less than $75,740, and the unpaid principal balance on their home's mortgages must be less than $258,690.

HHA funds have also been extended to Alabama victims of the 2011 April tornadoes. Storm victims who have been unable to return to work following the April tornadoes may be eligible for increased assistance of up to 18 consecutive monthly payments, or $25,000, through Hardest Hit Alabama.

North Alabama Educators Credit Union has signed on as a registered financial institution participant in the program and we encourage any unemployed Alabama residents to contact Hardest Hit Alabama for possible relief assistance.

For more information on the Hardest Hit Alabama program, visit http://www.hardesthitalabama.com/ or call 1-877-497-8182.

Retailer Victory on Interchange Rates

2011-10-17T11:34:00.003-05:00

The recent Dodd-Frank Financial Regulation Bill that is now law greatly reduced the debit card interchange fees paid by merchants to financial institutions. Lost in all the media discussions and consumer backlash over new banking fees has been the considerable financial windfall to merchants and retailers who accept debit cards as a means of payment.

Since October 1st, merchants and retailers have been enjoying reduced costs when consumers use their debit cards. Are we seeing lower prices with these merchants and retailers yet? An informal review of the prices of milk, bread, and cereal both before and after October 1st do not reveal that any cost savings are being passed along to the consumer. Consumers should look closely at 4th quarter earnings later this year for major retailers as there will be a significant increase in net incomes being reported as a result of the debit card interchange fee reductions.

The retail industry is the group who lobbied hard for the debit card fee reductions. They won that fight and are now enjoying the fruits of that victory. It remains to be seen however if the consumers will share any benefits of that retailer victory. Time will tell on that issue.

Those banking institutions most affected by the reduced income of the debit card interchange changes are passing along those costs to their consumers. North Alabama Educators Credit Union has not been forced to initiate new checking and debit card usage fees because our income has not been affected yet by the changes. Legislators in Congress were fully informed of probable new banking fees to consumers if the Dodd-Frank Financial Regulation Bill became law so it is quite disingenuous for legislators to now appear surprised by new banking fees.

Celebrate Credit Union Day

2011-10-12T11:37:00.002-05:00

North Alabama Educators Credit Union will be celebrating Credit Union Day on Friday, October 21st. Register to win a $75 cash drawing during the entire week of October 17 -21 at each of our office locations. (One entry per day max). The drawing for the $75 will be held on the afternoon of Friday, October 21st. Complimentary refreshments will be available all day that Friday.

In conjunction with the Credit Union Day activities, North Alabama Educators Credit Union is also sponsoring a free "Shred-it Day" on Friday, October 21st. There is no cost for the shredding service. Please limit your shred items to 40 pounds or less of paper records. Document Destruction Services will be on-site at the following times/locations;

Sparkman Office - 11:00 AM to 1:00 PM

2100 Sparkman Drive

Huntsville, Alabama 35810

Main Office - 3:00 PM to 5:00 PM

2309 Whitesburg Drive South

Huntsville, Alabama 35801

Shredding personal items is a very important tool in preventing identity theft. Take advantage of this free shredding service and protect your good name and reputation!

The theme of this year's Credit Union Day is "Credit Unions Build a Better World". We also believe that our credit union members build a better credit union. We appreciate our credit union members and invite the membership to stop by during the week and on Friday, October 21st as we celebrate Credit Union Day.

Mystery Shopper Scams

2011-09-20T14:33:00.002-05:00

Have you ever considered working as a "mystery shopper" to evaluate a product or service? There are valid secret shopper programs out there. Beware of scams related to mystery shopper programs that often are advertised as a work from home employment offer. Below is a summary of how the "mystery shopper" scam works;

A person responds to an email or sees a job offer online to be paid for working as a mystery shopper.

The mystery shopper then receives a large check in the mail or by overnight mail service.

Included with the check is a list of small items to be purchased and instructions to send the majority of the money via Western Union or wire transfer to a named individual in the letter or by telephone instructions. The "mystery shopper" completes an evaluation form included in the mailing and rates the service level of the small purchases and money transfers. For their work and effort the "mystery shopper" is allowed to keep a portion of the funds sent to them, usually several hundred dollars or so.

The scam reveals itself when everyone finally realizes that the large check sent by the mystery shopper program is a counterfeit check. The counterfeit notification process from the Federal Reserve can take days or weeks depending upon the bookkeeping oversight of the company whose checks were counterfeited. The person who deposited the counterfeit check is responsible for any loss of funds associated with the return of the deposited check. There is also a criminal aspect as well since it is a crime to possess and negotiate a counterfeit check.

The best way to spot a fake "mystery shopper" program is this fact - no legitimate company will ever mail a check to a prospective "mystery shopper" in advance of any work completed. The average payment for a real "mystery shopper" program is also only $15-$20 and that is received only after an extensive evaluation form is completed and returned to the company. A real company would never send a valid large check to a stranger and hope that the stranger would return the money.

The poor economy of the past few years has intensified these type of scams since victims are usually unemployed or needing to increase their household income. The lure and ease of earning money from home can sometimes cloud the judgment of financial caution. We don't want anyone to become a victim. Members are encouraged to bring any suspicious checks and associated correspondence to the credit union for a review by credit union management BEFORE attempting to deposit any such items.

Fall Newsletter

2011-09-16T16:53:00.002-05:00

Our latest newsletter has quite a bit of information. The latest issue has information on School Supply Loans, VISA Gift Cards, Skip-a-Payment program, Decatur Branch info, Charity Cookbook, Credit Union Day, Free Shred-it-Day, Scam Alert, Holiday Closing Schedule, Investment options, and more. You can view the newsletter online. It will also be mailed to member households in the next week.

Check it out: http://www.naecu.org/images/Fall_2011_Newsletter.pdf

GAP - Guaranteed Auto Protection

2011-09-12T11:31:00.001-05:00

Being in an accident and having a vehicle totaled is traumatic enough. Imagine the scenario where the insurance settlement amount on the totaled vehicle is not sufficient to cover the loan payoff. This can and does happen as more and more vehicle loans are “upside-down” over time, meaning that the value of the vehicle is less than what is owned on the vehicle loan. This “upside-down” situation is especially prevalent on purchases where a trade-in was financed into the new purchase. Certain vehicle makes/models also depreciate faster than others. The credit union has a VisualGAP tool that illustrates any current and projected differences between values and loan balances over the life of a loan.

Guaranteed Auto Protection (GAP) is a valuable product that North Alabama Educators Credit Union offers our members to minimize a total vehicle loss situation. GAP helps to cover the difference between the actual cash value paid by the primary insurance claim settlement and the vehicle loan balance at the time of the loss. Another benefit of GAP is that any deficiency balance caused by the borrower’s deductible will be reimbursed up to $1,000, where permitted. Without GAP, borrowers may be subject to owing anywhere from a few hundred dollars to several thousand dollars on a vehicle that they no longer have. Many primary insurance companies are now using a “local market value” analysis to determine the claim settlement amount which is sometimes lower than an average NADA price.

The best part about the credit union’s GAP product is the price. Members can purchase GAP coverage (as of September 2011) through North Alabama Educators Credit Union at a price of $195 for each loan covered. Automobile dealers routinely sell their GAP products for $400-$700 at their finance offices. The credit union helped one of members earlier this year with a vehicle refinance and that member received a prorated refund of roughly $600 from the GAP product that had been purchased at the dealership.

Members can purchase GAP coverage for their vehicle loan at the time of loan inception or anytime afterwards as long as there has not been a total loss situation prior to the date of purchase. If GAP is purchased after the loan inception date, the coverage is not retroactive but the coverage would begin on the GAP purchase date and cover the remaining term and balance. Loan Officers are available at any office to present the VisualGAP illustration to help in any GAP purchase decision. The GAP product is yet another example of how the credit union can save money for the membership.

Rising Fees at Banks - Not at NAECU

2011-09-01T12:08:00.003-05:00

Fees are on the increase with many of the big, traditional banking institutions as they work to recoup lost revenues from recent regulatory changes to the industry. Some institutions are starting to charge a monthly fee for checking accounts. Others are raising the account requirements, such as a larger average balance, to avoid having a monthly service fee. It was reported that Wells Fargo Bank is experimenting in a few markets with a $3.00 monthly charge for Debit card users if the consumer uses their Debit card at least once during the month. Some institutions are beginning to charge a monthly fee if an account statement is mailed instead of being delivered to the consumer by e-statement online.

The trend is clearly moving towards more fees back to the account holder. The good news is that North Alabama Educators Credit Union is not looking at adding any of the fees cited above. Our business model has always been to reward our member-owners with lower fees, higher rates on deposits, and lower rates on loans. While there have been regulatory changes that have affected North Alabama Educators Credit Union, the overall financial impact so far has not been sufficient enough to require additional fees at this time.

Consumers who have account relationships at multiple financial institutions are advised to look closely for any "change in terms" notices or new fee schedules that may be delivered from the institution. North Alabama Educators Credit Union is experiencing a good increase in new members recently as more and more consumers move their business away from these higher fees being charged elsewhere.

ATM Security Considerations

2011-08-19T15:21:00.003-05:00

Automated Teller Machine (ATM) users should be aware that several security threats are taking place in the north Alabama area. Multiple robberies have taken place at Huntsville ATM locations where the customer was using an ATM at night. A criminal is approaching people as they are using the ATM and either taking their cash at that time or requiring the victim to withdraw funds to give to them. The common theme is that the crimes are occurring at night when the cover of darkness is allowing the criminal to remain unseen until the robbery takes place.

ATM users are cautioned to be very alert to their surroundings when using ATM's. Avoid ATM transactions at night if at all possible, especially at more remote locations where traffic or other patrons are not very visible to the ATM. Do not count your cash at the ATM itself - move away from the ATM and wait until you are safely in your vehicle away from the machine. If you are involved in a confrontation with an assailant who demands money, comply with demands and do not do anything that might provoke the criminal. If you have a debit card, remember that you can receive "cash back" at a merchant point of sale which would be safer than a late night ATM transaction.

Another ATM security threat is where criminals are watching people use ATM's from a short distance and viewing the ATM PIN used for the transaction. If the ATM user leaves the ATM and does not clear out the menu option of "do you want to perform another transaction" or something similar, the thief can go to that same ATM and enter the victim's PIN (that they just saw used) and perform a cash withdrawal from the victim's account. Video surveillance at several ATM locations in Huntsville have recorded a criminal stealing money in this fashion. Please note that ATM's of North Alabama Educators Credit Union do require that the card be swiped again before a new transaction can be performed. ATM menu's vary though so be sure that all menu options are cancelled out before leaving an ATM that has been utilized. This type of ATM fraud also reinforces the importance of paying attention to the surroundings when using an ATM.

Criminals are out there in our area looking for victims. Be smart. Be safe.

Service Highlight : CO-OP Surcharge Free ATM's

2011-08-09T15:45:00.003-05:00

Credit unions do a really good job of working with other credit unions. The credit union philosophy of "people helping people" extends between credit unions as well. The CO-OP Surcharge Free ATM Network is an excellent example of credit unions working together for the common good of credit union members in general.

Basically, the CO-OP ATM Network is a collection of credit unions throughout the country that allow participating credit unions to access their ATM's without a surcharge fee. There are other ATM's within the network, like Publix Grocery Store ATM's, that are also surcharge free but the bulk of the ATM's are owned by credit unions.

There are currently over 28,000 ATM's nationwide where members of North Alabama Educators Credit Union can withdraw cash without a surcharge fee or internal fee. Totally free to the member. In the Tennessee Valley area, most Redstone Credit Union ATM's and Publix Grocery Store ATM's are surcharge free. Always look for the CO-OP Network Logo (shown above) on the ATM. You should also not have to click "yes" to a surcharge fee at the terminal if the ATM is part of the CO-OP Network.

Locating a surcharge free ATM can be done in several ways. Members can locate a CO-OP Surcharge Free ATM through an online ATM locator, iPhone Application, Text Messaging, or GPS. Below is a direct link to the ATM Locator page for the CO-OP ATM network. This CO-OP link is posted on our credit union home page as well.

http://www.co-opfs.org/public/locators/ATMlocator/index.cfm

School Supply Loans - 0.00% APR

2011-08-03T10:51:00.002-05:00

North Alabama Educators Credit Union is once again offering School Supply Loans where qualified members can borrow up to $500.00 at a 0.00% Annual Percentage Rate.* These loans are paid back over a maximum term of 10 months on payroll deduction. A small processing fee does exist on these loans. If you need to borrow money, this is one of the best deals you will find.

These School Supply Loans have been very popular over the years to teachers and parents in assisting with their school expenses. Frankly the loans can be used for any worthwhile reason. We have had members to use these loans to pay off costly payday lenders and check cashing loans.

The first three days that this loan was available this year (started July 11th) the credit union provided over $52,000 in School Supply Loans to our members. Availability of this loan will continue through September 30th.

This School Supply Loan is another excellent example of the value of credit union membership in North Alabama Educators Credit Union. You will not find this type of loan offer with the large traditional banking institutions. Credit union membership does have its privileges.

*We are an Equal Credit Opportunity Lender. Qualifications must be met on all loans. Rates and loan availability are subject to change without notice. Your loan interest rate will be determined by your credit worthiness as well as other factors, such as the length of your loan.

National Debt Ceiling

2011-07-28T12:10:00.002-05:00

The current legislative debate over whether or not to raise the national debt ceiling is a frustrating process to witness. There are federal obligations that must be paid that will exceed our current revenues and available funds on hand. While I agree that the national debt ceiling must be raised in the short term to meet these current obligations, there seems to be no real efforts or urgency to reduce current expenses (that are not obligations) and increase revenues. We all know how school systems must deal with budget shortfalls. They are forced to lay off employees, reduce employee benefits, reduce operating expenses, consolidate various operations within the system, and look for additional revenues through property taxes and other/or other tax plans. This federal debt ceiling problem has been known for some time. Why have efforts not been undertaken already to reduce expenses and increase revenues? Businesses and other state and local governments must balance their budgets so it should be no different for the federal government.

Fear in financial markets is obviously not a good recipe for stable financial activity. Investors are understandably concerned by the possibility of debt defaults by the government and the negative impacts that would occur. Senior citizens are fearful that they will not be receiving their monthly social security checks. Fear needs to be eliminated to insure a stable financial system going forward.

The national debt problem must be addressed. The current national debt did not occur overnight and a quick fix will not be available. A reasonable plan to reduce the national debt over a period of time should be attainable. The eyes of the nation and the world will be watching Congress and our President on this debt ceiling/debt reduction issue. Hopefully our leaders in Washington will choose diplomacy and create a solution to our nation’s debt problem.

Review of Beneficiaries

2011-07-25T13:07:00.005-05:00

Members are encouraged to review the beneficiaries currently listed on their financial accounts to insure that existing names and distribution percentages are still valid. The credit union has had members to pass away with a previous spouse still listed as the account beneficiary or joint owner. By law, the credit union is required to distribute funds from a deceased account according to the existing status on the account at the time of death. If one or more multiple joint owners exist on a deceased member's account, any surviving joint owners would receive the funds. If there are no surviving joint members on an account, the credit union is then required to distribute funds according to the account beneficiaries listed on the most recent membership card. Please understand that beneficiaries can be different for the share and IRA accounts. Beneficiaries can be changed at any time by the primary member or IRA account owner.

The death of a loved one is difficult enough. Nobody wants a problem with an outdated beneficiary or joint owner being listed on a deceased account. Stop by any branch office to review the existing account beneficiaries and/or joint owners on your accounts. If changes need to be made, now is the time to address these name changes for beneficiaries and joint owners on your account(s).

Alert: Insurance for your water lines?

2011-07-13T11:41:00.004-05:00

The Better Business Bureau (BBB) of North Alabama sent out an alert concerning consumer concerns about solicitations for water service line insurance coverage that are being circulated in our area. These offers are not affiliated with any local utility company and only offers a service contract that covers the main water line going from the utility company connection to your home. As with any product or service solicitation, consumers are cautioned to read all of the terms and conditions of any offer that they are considering.

One of the water service line insurance solicitations provided a number of important exclusions that appeared in the fine print of the mailing. Some of these exclusions included: Acts of God, thawing of frozen pipes, repair of covered parts, equipment and/or systems due to reduction in performance caused by normal wear and tear, repairs when parts are obsolete, etc, etc. (These reasons alone are some of the more common reasons why a water service line would fail!).

Consumers are urged to research unknown companies with their local Better Business Bureaus before making a purchase or signing a contract. One of the water service line warranty firms had a C- rating due to 492 complaints that have been registered in the past three years, 51 of which have been determined by the BBB to be serious in nature.

Buyer Beware is the best advice here.

Tools for Schools

2011-07-08T11:28:00.003-05:00

North Alabama Educators Credit Union is assisting the WHNT News 19 Tools for Schools program this year. The Tools for Schools program collects school supplies from the community to give back to the various school systems in the Tennessee Valley. While actual supplies are still requested by the community in the program, a new wrinkle this year is the availability of donors making a monetary donation towards the program. Financial donations made to Tools for Schools will be distributed by the WHNT News 19 fundraiser team to the school superintendents in 12 counties of north Alabama. North Alabama Educators Credit Union has established a "Tools for Schools" account to receive financial donations either online or at one of our five branch offices. North Alabama Educators Credit Union also has donation boxes at each office location for school supplies to be donated.

Here is the direct link to the "Tools for Schools" page where monetary donations can be made via PayPal. Credit and debit cards can also be used to submit a donation.

http://www.naecu.org/toolsforschools.html

Please pass the donation link on to anyone that you think might be able to assist with a monetary donation. The educational budgets are tighter than ever so your assistance with providing school supplies would be greatly appreciated!

VISA Debit Card Fraud Monitoring

2011-06-29T15:09:00.002-05:00

Behind the scenes of every VISA debit transaction, our fraud prevention team is monitoring every transaction and scoring the potential fraud risk associated with each transaction. The fraud prevention system tracks member card activity and looks for unusual changes in card usage behavior or locations. Members may be contacted either by telephone or mail by our Fraud Prevention Center to confirm suspicious transactions. The Fraud Prevention Center telephone number is 1-800-262-2024 which is open nights and weekends. We recently had a member to receive a mailed inquiry about possible suspicious activity on their VISA Debit card from the Fraud Prevention Center. The 1-800-262-2024 telephone was provided in the letter. The member contacted the credit union first to verify that the letter was legitimate and then contacted the Fraud Prevention Center. The member had recently traveled to Gulf Shores and there were a few back to back transactions at a WalMart that appeared suspicious. (Most card users would make one purchase and move out of the store). The Fraud Prevention Center provided all the details of the transactions and asked no confidential information during the member call. No fraud was evident and the potential fraud case was closed.

Key Points: Never provide personal information in response to a fraud inquiry. Our Fraud Prevention Center will just need your name and zip code. They will then provide the details of any suspicious transactions. If you receive a telephone call from 1-800-262-2024 (The Fraud Prevention Center number), inform the caller that you will call them back at the same number since incoming calls can be spoofed (fake) and not actually be the Fraud Prevention Center. The published number for the Fraud Prevention Center is listed on the bottom of our home page at www.naecu.org. Members are welcome to contact any credit union office location for assistance as well.

There are MANY fraudulent emails, text messages, phone calls, and letters circulating that are designed to steal personal information. Be careful out there!

Interchange Amendment Fails - Canada Example

2011-06-08T22:00:00.001-05:00

A replay of the Senate debate on the interchange rate fix legislation was covered last evening. It is disappointing that the final vote failed although we are pleased that both Alabama Senators voted for the bill. We thank Senator Richard Shelby and Senator Jeff Sessions for their support on behalf of Alabama consumers.

Senator Durbin noted in his comments that Canada retailers do not pay any interchange rates, implying that that system is superior to the system in the United States. Perhaps Senator Durbin should have compared the consumer side of the equation in Canada. A quick online search of Canadian credit unions show a considerable increase in the amount of banking fees paid by account holders as compared with credit unions in the United States. Monthly service charges range from $15 to $6, depending upon the type of checking account. Electronic transactions in Canada generally offer 5 to 10 free transactions per month and then a per transaction fee of $1 or more is charged. There were also several examples found where $500 daily electronic transaction limits were in place. This limit is most likely due to minimizing the fraud exposure on behalf of the institution.

It would be interesting to compare retail prices of products on common items sold in Canada as opposed to the United States. Given the fact that interchange rates are not being paid by retailers in Canada, they should be selling their products for a lessor price. My guess is that prices are not that much different though. Certainly not enough to cover the additional banking fees being paid by consumers in Canada.

If credit union members want a glimpse of how interchange rate changes can affect their bottom line, look online at credit unions in Canada and look over their fee schedules. It is unfortunate that Congress did not choose to perform a consumer impact study that would have been required in the interchange fee legislation that was ultimately voted down.

Refer a New Member - Earn $10.00

2011-06-06T15:17:00.003-05:00

Membership Months for North Alabama Educators Credit Union is now in effect through September 30th. What does this mean to existing members? Existing members can refer potential new members to North Alabama Educators Credit Union and earn $10.00 for each qualifying new member who opens an account. Some of our best sales people are our own members. Share your good experiences and stories to relatives (any family member of an existing member can join) and encourage them to join the credit union. If you have three children who don't have accounts, that is $30.00 to get them started on a savings plan PLUS you would earn $30.00 as well for referring the new accounts! Membership coupons can be printed out on our web site - CLICK HERE.

Don't forget that friends and co-workers may be eligible to join the credit union as well. The page link above provides a resource for membership eligibility qualifications. As an example, PTA members of sponsor schools are eligible and anyone can become a member of the PTA. All students in the counties of Madison County, Morgan County, and Limestone County are also eligible for credit union membership. There are numerous other eligibility methods.

Become a salesperson for North Alabama Educators Credit Union and earn some green while helping the credit union to continue our membership growth.

Capturing Photos, Photo ID's, and Signatures

2011-05-27T10:13:00.007-05:00

North Alabama Educators Credit Union is committed to protecting your financial accounts from fraud and identity theft. It is our responsibility and obligation to insure that all financial transactions being completed are being performed by the members authorized for access to a particular account. The credit union is financially liable for any fraudulent or erroneous transactions posted to a member’s account.

Our credit union staff are digitally capturing photos, photo ID’s, and signatures to help prevent errors and fraud on our membership. This information is only used for the purpose of verifying our members upon subsequent visits. Please keep in mind that identity thieves can counterfeit photo ID’s in an attempt to steal account funds if they know your account number. Having this information on file also can assist members if they have lost their own photo ID and need to perform a transaction. This exact scenario occurred at our Athens branch following the April 2011 tornadoes when a member’s identification was lost but we were able to verify the member’s photo and signature on file.

We also hear from longer term members who do not want to have to show their photo ID when performing a transaction. With nearly 12,000 members it is impossible for our staff to recognize every member of the credit union. This photo retention process can assist those longer term members since we will have the photo ID available on file to the credit union staff member.

Please keep in mind that we are simply trying to protect member accounts. The information is not being shared with anyone outside of the credit union. We are already seeing the information when we post member transactions now. We would appreciate your cooperation in our efforts to secure and protect your membership account(s).

Request for Legislative Help - Interchange Rates

2011-05-17T10:15:00.002-05:00

This afternoon I will be meeting with Congressman Mo Brooks and other credit union CEO’s in the area to discuss the interchange fee issue from the credit union perspective. Credit union members will be negatively impacted down the line if interchange fee rates are drastically reduced. Retailers may want to pay less for accepting debit and credit cards, but they give no guarantees and the law provides no guarantees that consumers will reap any of the benefits of lower interchange fees from the retailers. Those savings will go straight to the retailer’s bottom line and they will be under no obligation to lower retail prices for the goods and services they sell.

If the credit union receives less income on our debit card program due to a reduction in interchange rates, that lost income will either have to be created somewhere else or current services will have to be altered or terminated. Either way, our members would see a distinct difference in some fashion. I doubt that our members would see any difference in the prices that they pay with their local retailer.

The last thing that consumers need right now is less money in their own pockets. The economic impact of the changes to interchange rates has not been evaluated and studied. Our fragile economy does not need laws that could curtail consumer spending. The credit union industry is simply asking Congress to delay implementation of the Durbin Act section that deals with setting a price on interchange rates to allow time for a financial impact study. We will be asking Congressman Mo Brooks for his support of HB 1081 to allow such a study. I agree that some reform is probably necessary in the card payment system but the current pricing solution is woefully inadequate since the pricing model did not address all costs associated with providing a card program.

FYI – Previous posts have addressed the interchange rate fee issue in more detail. If any members have questions or comments over the interchange rate issue, feel free to contact me.

Thoughts and Prayers for our Community

2011-05-02T14:26:00.003-05:00

The events that have unfolded since the first tornado siren last Wednesday will forever remain in the hearts and minds of our local community. The devastating storms throughout Alabama have literally changed the face of communities. Loved ones have been lost, homes have been swept away, and communities have been brought to a standstill with crippling long-term power outages. Through it all though we have also seen neighbors helping neighbors, people helping people.

Our thoughts and prayers go out to those impacted by the storms. Together, the communities will rebuild and our lives will return to a level of normalcy that we have come to expect.

We appreciate the patience of credit union members in our process of bringing offices and services back online. The credit union will be helping members in the coming weeks and months to minimize the negative financial impacts of the storms and power outages. An overview of credit union assistance plans are available on our home page now. Additional assistance steps will added as new member needs are identified.

People helping people - it's just the right thing to do.

Overdraft Privilege for ATM's and Debit Cards

2011-04-18T15:34:00.003-05:00

Unlike many financial institutions in the country, North Alabama Educators Credit Union has never automatically covered a debit card transaction and charged a fee equivalent to an insufficient funds fee. If the money was not available in the checking account, the debit card transaction was declined.

Federal law was enacted in 2010 that now requires consumers to consent or "opt-in" to the availability for overdrawing their checking account with a debit card for ATM transactions or everyday debit card transactions. This was good consumer legislation since it placed the power of the available overdraft privilege access with a debit card in the hands of the credit union member. North Alabama Educators Credit Union now offers Overdraft Privilege on debit cards with a maximum overdraft privilege amount of $500 to qualified members. CLICK HERE for full details and the OPT-IN form on the NAECU program.

Percentage wise, the numbers range from 50-75% of credit union members signing up nationwide for this service. This doesn't mean that 50-75% of credit union members are routinely overdrawing their checking accounts with a debit card. A much smaller percentage of members will actually ever use overdraft privilege, period. Opting-in to Overdraft Privilege for ATM transactions and everyday debit card transactions costs nothing if the service is never utilized.

Why opt-in to Overdraft Privilege for ATM transactions and everyday debit card transactions? It provides a safety net should an emergency occur. Consider an emergency visit on a weekend where that $150 co-pay is due on the spot and you don't have $150 available in your checking account until payday. Also consider the scenario where you have a cart full of groceries and your debit card is declined at the checkout line due to an insufficient checking balance as a result of a mathematical balancing error or unrecorded transaction. An embarrassing situation can be avoided with the Overdraft Privilege service.

Overdraft Privilege is not a loan and should not be considered a line of credit. The credit union offers traditional overdraft loan protection that all checking account members should pursue to lessen the cost of an overdraft. Members are also encouraged to use our free CU-Online Home Banking and free Memberlink Audio Response services to monitor their available balances and prevent unwanted overdrafts.

Email Data Breach - Epsilon

2011-04-11T15:41:00.003-05:00

A data breach at third-party marketer Epsilon has exposed the email addresses and names of customers at major credit card issuers and national retailers. Members of North Alabama Educators Credit Union should know that we were not involved in the email data breach and have no vendor connection to Epsilon.

There is a genuine concern that an increase in phishing attacks, or fake emails, will occur with the intent of stealing personal information from consumers. The normal phishing attempt is to try a shotgun approach and hope to hit on a victim who actually is a client of the business in the fake email. With this email data breach however, the scammers will know exactly what companies the victim does business with. The email data breach greatly increases the odds of fooling consumers into thinking that they are communicating with a company that they are familiar with, when in reality they are not. The breach can also increase the odds of spreading computer viruses and spyware when victims click on embedded links in the fake emails.

Consumers should NEVER respond to an unsolicited email, telephone call, cell phone text, or mail request for personal information. If you have questions over a request received, please contact the company involved at a published telephone number to verify the request. Also do NOT click on links or open videos from emails from trusted sources unless you are 100% certain of the source of the email. Maintaining a good anti-virus program on your computer is an absolute requirement these days.

Be careful out there - things are not always what they appear to be!

Fraud Alert - Fake ACH transaction alert

2011-03-28T15:27:00.003-05:00

"The ACH transaction (ID: 8067914072656), recently initiated from your checking account (by you or any other person), was rejected by the Electronic Payments Association." The above communication is an example of a fake email received by one of our members. The email had a fake link included with the message. Please look over the warning message provided below from the National Automated Clearing House Association (NACHA). Further to its notice of February 22, 2011, NACHA has received reports that individuals and/or companies continue to receive fraudulent emails that have the appearance of having been sent from NACHA. These emails vary in content and appear to be transmitted from email addresses associated with the NACHA domain (@nacha.org). Some bear the name of fictitious NACHA employees and/or departments. NACHA itself does not process nor touch the ACH transactions that flow to and from organizations and financial institutions. NACHA does not send communications to persons or organizations about individual ACH transactions that they originate or receive. Be aware that phishing emails frequently have attachments and/or links to Web pages that host malicious code and software. Do not open attachments or follow Web links in unsolicited emails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual. If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to remove malicious code or re-install a clean image of the computer system. Always use anti-virus software and ensure that the virus signatures are automatically updated. Ensure that the computer operating systems and common software application security patches are installed and current.

Op-Ed Letter to the Huntsville Times

2011-03-25T08:00:00.003-05:00

Below is the text of a Op-Ed submitted to the Huntsville Times on the interchange fee debate. It has not been published as of this date.

There is an intense debate between financial institutions and retailers over the cost of interchange fee rates paid when a consumer uses their credit or debit card. Retailers think that the cost per transaction is too high. The Federal Reserve has formulated a flat 12 cents per transaction fee that would be paid by the retailer to the financial institution. Currently, the interchange rate fee varies between 1-2 percent of the transaction amount with the average interchange fee costing 42 cents.

The Federal Reserve did not calculate the overall costs of a credit or debit card program, it just computed what the electronic cost was to receive, authorize, and settle the one-time card transaction. The problem with this approach is that the major costs of operating a card program are not being considered. Data processing, 24-hour fraud prevention and detection, personnel, licensing, compliance, and a major expense – fraud, were all costs ignored by the Federal Reserve in computing the flat rate of 12 cents per transaction.

Here’s an example of what the Fed is not taking into consideration: A $2,000 stolen debit card is used at a major retailer to buy a big screen television. Who pays the fraud? Often times the retailer never looks at the card being used. That’s because they are not responsible for the theft amount. The financial institution is left holding the bag for covering the amount of the loss once the unauthorized card transaction is reported. How many 12-cent transactions does it take to cover that $2,000 loss realized by the financial institution? Card fraud occurs every year and retailers pay very little, if any, of the cost.

If the 12-cent flat rate interchange fee is implemented, consumers can expect to see caps placed on purchase amounts to reduce the increased fraud loss exposure. Some have suggested caps of $250 or less on debit and credit card transactions. That major retailer can then enjoy the risks of accepting a $2,000 personal check for that big screen television.

House Bill H.R. 1081 and Senate Bill S. 575 have been introduced by Congress to delay the proposed changes to interchange rates and allow a study to realistically consider the impact on financial institutions and consumers. Financial institutions are hopeful that any changes are done only after a careful analysis of the impact of such legislation is completed. Consumers have shown they want to use debit cards; so let’s not rush to a set price that will ultimately hurt the consumer.

Sincerely,

Greg Olmsted, President/CEO

North Alabama Educators Credit Union

Financial Institutions versus Retailers

2011-03-15T14:12:00.002-05:00

Previous posts have discussed the ongoing feud between financial institutions and retailers over the issue of interchange fees. An interchange fee is a fee paid by merchants when they accept a debit or credit card for payment of a purchase. The merchants now pay a percentage between 1 and 2 percent of the transaction amount depending upon the product or service. The Federal Reserve is now proposing to set a flat rate of $0.12 per transaction on all debit and credit card transactions.

The retailers say that they will pass along the savings from the reduced interchange rates back to the consumers through lower prices of their products and services. This may or may not occur in the short term following the pricing change, but will the savings still be there 5 years down the road when no one is talking about interchange rates anymore?

Institutions will lose revenue if this Federal Reserve proposal is implemented. There is no doubt about that. Our existing card program costs (that were not considered by the Federal Reserve) such as fraud, personnel, data processing, licensing fees, compliance, and 24-hour monitoring will still be there. Additional fees would have to be implemented on checking accounts and credit cards to make up the lost revenue.

Credit unions are urging Congress to step back and conduct a compete analysis of all costs associated with maintaining a debit and credit card program. There should be an economic impact review of this Federal Reserve proposal. It may be time for changes in the interchange fee structure, but the process used to calculate the proposed $0.12 flat rate is flawed and will cause more harm than good to consumers.

Scale Back Auto Loan Sale - as low as 2.99% APR

2011-02-28T16:13:00.005-06:00

How does a fixed rate as low as 2.99% Annual Percentage Rate (APR) on terms as long as 60 months sound?? Our "Scale Back Auto Loan Sale" going on now through April 30th offers this great loan rate for new AND used automobiles financed during the promotion. The loans themselves can be for purchases or refinances from another financial institution. Qualified members can also delay their first loan payment up to 90 days. Wouldn't be nice to not have a car payment for a few months? That money could be used to pay down other debt, pay for a special project, or just provide a little money for a Spring Break trip. It is important to note here that loan interest would accrue during the loan deferment time frame.

The theme of the loan promotion is similar to the "Scale Back Alabama" weight loss campaign in that cutting your costs is a smart idea. We have money to lend so if you are going to borrow money make sure that your costs are minimized. Weigh your options, trim your budget, and lose high interest rates with a low cost loan from North Alabama Educators Credit Union!

As with all loans at the credit union, we are an Equal Credit Opportunity Lender. Qualifications must be met on all loans. Your actual loan interest rate will be determined by your credit worthiness as well as other factors, such as the term length of your loan. For a 60-month term as referenced above, the payments would be as low as $18.00 per $1,000 borrowed. Please keep in mind that well qualified borrowers with a credit score of 748 and over can actually receive a lower loan rate than advertised above. To refinance a loan already financed with NAECU, an additional $2,500 must be added to the existing balance to qualify for the reduced rate.

Visit our web site at www.naecu.org for rates and terms available.

$10,000 Donation to American Cancer Society

2011-02-15T16:04:00.002-06:00

North Alabama Educators Credit Union presented a $10,000 check to the American Cancer Society for the benefit of breast cancer awareness in the Tennessee Valley. The donation was given during our 55th Annual Membership Meeting that was held on Monday, February 7th. Liz Payne of the American Cancer Society (pictured above) was presented the check.

Many thanks are extended to our employees and members who have participated in the many fundraiser ideas throughout the year. These fundraiser ideas ranged from a bass fishing tournament, group yard sale, jewelry party, pictures with Santa, pictures with the Easter Bunny, a DIRECTV drawing, Alabama and Auburn gift basket drawings, and breast cancer awareness merchandise sales. Our employees have generated many creative ideas over the years for these fundraiser events. Good job by the employees and members of NAECU!!

Caller ID Spoofing

2011-02-04T08:11:00.002-06:00

The Better Business Bureau of North Alabama is warning residents about Caller ID Spoofing cases taking place in the Tennessee Valley. The purpose of the calls may vary but the troubling issue is that the number appearing on the consumer's caller ID appears to be a local number - in fact in many cases the number is only one digit away from their own number. It might even be the local number for the hospital, fire department, or the credit union.

In reality, the caller is using technology to alter the information that appears on a call recipient's Caller ID display - a practice known as Caller ID Spoofing. The recipient of the calls reads their caller ID display and sees a familiar number or local number and chooses to answers the call.

Consumers are advised to be aware of Caller ID Spoofing technology and understand that the caller's number displayed may not always be the true origin of the call. Some of these spoofing attempts are trying to sell services but others are outright scams designed to trick people into providing personal information. ID theft is one purpose of these type of calls.

Never give out any personal information to a company or individual unless you know with 100% certainty of who you are dealing with. If you receive a call that claims to be from a trusted source, like the credit union, you should not be asked to provide any personal information. If you receive any suspicious calls you should contact the associated organization using a known published telephone number to verify the nature of the initial call.

There have been cases of Caller ID Spoofing where the caller spoofed a local financial institution's name and telephone number. Trust but verify is the best policy!

Alabama Securities Commission

2011-01-18T15:43:00.003-06:00

It was a pleasure to listen to Joseph P. Borg, Director of the Alabama Securities Commission (ASC), speak at a luncheon meeting earlier today. Various investment fraud examples were discussed as well as a need for general investor educational resources. The current economic environment is almost a perfect storm for fraudsters. You have very low yields on traditional investments so investors are looking to earn a higher yield on their liquid cash. The volatile markets of real estate, rising oil prices, and rising gold prices have also created opportunities for investment fraud in these areas. This does not mean that investments in these areas are a bad choice, just that scammers use the headlines to sell legitimacy and to gain trust.

Investments that offer very high yields should always be reviewed and researched very closely. How many times have we heard "if it sounds too good to be true, it probably is". One of the fraud examples given during the presentation offered investors a doubling of their investment within 18 months. This simply is not realistic and sure enough the investors lost all of their investment dollars. Do not allow the lure of a high yield prospect to cloud good financial judgement.

The ASC website has valuable resources, investor alerts, and links to help educate investors in making a sound financial investment. Here is their website - http://www.asc.state.al.us/index.htm . Check it out!

Electronic Pickpocketing

2011-01-07T14:36:00.003-06:00

A few members have contacted the credit union about national news media stories on the issue of "electronic pickpocketing" and concerns over data theft. For those who have not heard about electronic pickpocketing, it is basically theft of data from a plastic card that possesses a RFID (radio frequency identification) chip. The RFID chip sends out a short wave radio signal so that merchant readers can receive the signal and authorize transactions on the card without the need for a physical swipe of the card. Scammers have realized that a cheap portable card reader could be used to obtain someones card information while the card is still secured in the person's wallet or purse. In a crowded mall or shopping area, someone could be standing within a few feet and electronically obtain some of the card information. There are a multitude of videos online that demonstrate this type of data theft. The card number and expiration dates can be stolen with this type of technology.

North Alabama Educators Credit Union does not utilize RFID chips with our VISA Debit Cards. The VISA Credit Cards issued through our partner Elan also do not utilize RFID technology. As a result, there is no threat of data theft from electronic pickpocketing on our member cards.

It is important to note that the 3-digit security code on the back of cards cannot be obtained via electronic pickpocketing. The majority of Internet transactions with a credit or debit card would require the correct 3-digit security code to complete a transaction. For those who do possess cards with an RFID chip there are special protective card sleeves available that would block transmission of the short wave signal.

Regardless, it is still unnerving to say the least that someone could electronically steal card information from your wallet or purse just by standing close by.

Again, North Alabama Educators Credit Union does NOT utilize RFID technology for either our debit or credit cards.

$1,500 Scholarship from NAECU

2010-12-27T16:31:00.002-06:00

Our annual $1,500 scholarship is once again available to a graduating high school senior from our area. Scholarship applicants must be a primary account member of North Alabama Educators Credit Union. As a reminder, all students of public and private schools in Madison, Morgan, or Limestone counties are eligible to join North Alabama Educators Credit Union.

The essay question this year is: "The year is 2025. How will banking be different in the future? What will be the differences and similarities of banking as we know it today?"

It will be interesting to see the essay responses. Given the technology background of the Tennessee Valley, some of these graduating seniors may very well be developing the banking advancements for the future.

For complete scholarship details and a scholarship application, visit our web site page at http://www.naecu.org/news/scholarship.html . Applications may also be requested at any branch office. Good luck to all applicants!

Merry Christmas from NAECU

2010-12-23T09:56:00.003-06:00

Merry Christmas and best wishes for a safe and peaceful holiday season. Our staff, board of directors, supervisory committee, and I are very appreciative of our credit union membership. Thank you so much for choosing North Alabama Educators Credit Union.

VISA Gift Cards

2010-12-16T10:39:00.002-06:00

Having difficulty finding a gift for someone? A VISA Gift Card is the perfect gift since the card can be used at any merchant that accepts VISA. The VISA Gift Cards can even be registered online by the user for purchases and transactions performed on the Internet. This Internet access actually can be useful for those members who are looking to make an Internet purchase but are leery about using their own credit card or debit card online. For the record, debit cards are not recommended for Internet use due to the exposure of your own account funds if a fraud compromise occurs with the merchant being used. We have seen several members recently who have been the victims of debit card fraud which is believed to have arisen from Internet usage with their debit card.

North Alabama Educators Credit Union has VISA Gift Cards available for the holidays and for any reason during the year. Graduations, weddings, and birthdays come to mind. Teenagers love these cards! The VISA Gift Cards can be purchased for amounts from $10 to $500 at a low cost of only $2 per card purchased. The new rules for gift cards also make them a more attractive gift because the expiration dates are much longer now. These VISA Gift Cards are available at all of our offices.

Safety Tips to Reduce Card Fraud

2010-11-23T14:30:00.002-06:00

FICO recently distributed a good list of tips for card holders to reduce the exposure to possible fraud. These are the highlights;

F - Figure out your balance. Keep close tabs on the balances of any financial account that is accessible by a plastic payment card. Identifying a dramatic change in one of your accounts is the best early warning system a consumer can have.

R - Respond to contact by unknown persons with extreme caution. It's ok to hang up and call back! Do not trust text messages, emails, or direct telephone calls from persons unknown to you especially if they identify themselves as an employee of the financial institution. NEVER call a telephone number that is provided to you by unknown persons. Obtain the financial institution phone number on your own and call them immediately to verify your account status.

A - ATM Safety. Never approach an ATM if anyone is lingering nearby. Never engage in conversations with strangers around an ATM. Never use an ATM if you see loose or wobbly parts attached to the face of the ATM or notice a dramatic change in the appearance of the ATM since your last visit.

U - Unreported incidents can hurt you. If your plastic card is captured inside of an ATM call your card issuer immediately to report the card capture. Sometimes you may think that your card was captured when in reality it was later retrieved by a criminal who staged its capture.

D - Don't hesitate. Ask your card issuer for a new number if you suspect that your card has been compromised at a merchant, restaurant or ATM. It is important to change both your card number and your PIN whenever you experience a potential theft of personal information.

Visit FICO on the web at www.fico.com.

Pictures with Santa - December 4th

2010-11-18T13:23:00.002-06:00

North Alabama Educators Credit Union is once again hosting our "Pictures with Santa" event on Saturday, December 4th at the main office location on Whitesburg Drive. Pictures will be available from 9:00 AM to 2:00 PM for a cost of $10.00 that includes a professional 4X6 photo and a Christmas stocking filled with goodies.

This was a popular event last year and was well received by the members and children who participated in the event. Our employees had a fun time with the day as well.

All of the proceeds for the pictures will benefit our Breast Cancer Awareness fund.

We strongly encourage appointments if at all possible to avoid lengthy waits for photos. (Smaller children don't always have much patience, especially when Santa is around!). Please RSVP Laura Simpson at loanclerk@naecu.org or call 256-534-2423 to schedule an appointment time.

USA Today Article: End of Free Checking?

2010-11-04T16:07:00.005-05:00

Several weeks ago USA Today posted an article on the probable demise of free checking accounts by large banks as a result of lost revenue from recent regulatory changes. The Wall Street Journal had also posted a similar story back in July of this year. The large banks are no longer earning the same amount of fee income on services like overdrafts and credit cards. The largest source of fee income, checking account overdrafts, has been reduced due to "opt-in" provisions now in effect that require a consumer's prior authorization to allow debit card transactions to post on insufficient balances, causing an overdraft fee in the process.

The good news is that North Alabama Educators Credit Union has no plans for adding a monthly service fee on checking accounts. We have not lost fee income from the various new regulations because we were not charging the fees in the first place. Now that there is an "opt-in" provision required for allowing overdrafts on debit cards, we are looking at allowing debit card overdrafts for those members who have specifically authorized us in advance to do so. Members are always advised to spend money within their means and to avoid unnecessary fees, but emergencies can occur that require access to additional funds for a reasonable fee.

Here is a link to the USA Today article: http://www.usatoday.com/money/industries/banking/2010-10-23-free-checking-accounts_N.htm

Over 28,000 ATM's and Counting

2010-11-01T12:02:00.006-05:00

There was a Wells Fargo/Wachovia commercial the other day that bragged about having a network of 12,000 ATM's available for their customers.

That might seem impressive until you realize that members of North Alabama Educators Credit Union have over 28,000 Surcharge Free ATM's available nationwide for cash withdrawals through the
CO-OP ATM network. How can a credit union like North Alabama Educators Credit Union with $75 million in total assets have more than twice as many free ATM's than a multi-billion dollar financial institution like Wells Fargo? Cooperation is the key difference. Credit unions work with each other to provide free ATM access to other credit union members. Banks rarely if ever work together on providing shared resources to other banks.

Members are encouraged to visit http://www.co-opfs.org/public/locators/ATMlocator/index.cfm for a variety of different methods to locate surcharge free ATM's. This link is also posted on our web site home page.

Members can locate surcharge free ATM's online, by iPhone application, text messaging, or by a GPS system. These options are included on the CO-OP ATM locator link listed above. There are numerous surcharge free ATM locations in the Tennessee valley area. All Publix grocery store ATM's provide free ATM withdrawals as an example.

While we do not have an internal fee for withdrawals at CO-OP Network ATM's, the credit union does have a internal fee of $0.50 for balance inquiries and $1.00 for balance transfers when performed at an ATM not owned by North Alabama Educators Credit Union. Keep in mind that balance transfers and balance inquiries can both be performed free of charge 24-hours a day through home banking or audio response.

School Drive Auto Loan Sale

2010-10-04T10:06:00.002-05:00

The School Drive Auto Loan Sale is now underway! Qualified members can finance a new/used automobile at a reduced low fixed rate through October 31st. The loan special is also good for refinances from other financial institutions. On new financed money of $10,000 or more, North Alabama Educators Credit Union will donate $100 to the school general fund of the member's choice. This really is a win-win offer for members and our sponsor schools. Restrictions do apply so please visit http://www.naecu.org/rates/loanrates.html for complete rates and terms available.

NCUA seizes Corporate Credit Unions

2010-09-27T15:40:00.002-05:00

Members may have heard or read about the National Credit Union Administration (NCUA) seizing three corporate credit unions on Friday, September 24th. Corporate credit unions are basically credit unions for natural person credit unions. North Alabama Educators Credit Union is a member of two corporate credit unions, none of which was seized in the NCUA action this past week. The NCUA conducted a 2-hour webinar on Monday, September 27th to explain the actions and the future impact on other credit unions throughout the country. All credit unions that are federally insured will help fund the insurance fund over a period of several years. The term "bailout" has been incorrectly used in describing the actions of the NCUA in dealing with the corporate credit unions. No taxpayer money is being used. All federally insured credit unions, including North Alabama Educators Credit Union, have sufficient reserves on hand to fund industry losses without the need for taxpayer money.

The Wall Street Journal has a good article on this subject, other than the fact that they also use the word "bailout" in the article header. It is not a bailout. Read the article for an overview of the situation. LINK HERE.

Data Processing Conversion - September 1st

2010-08-09T10:30:00.006-05:00

The credit union will be undergoing a data processing change effective September 1, 2010. Extensive training and preparations are taking place in advance of this event. Regular business hours will be observed on Tuesday, August 31st. PLEASE NOTE that we will be closed all day on Wednesday, September 1st and will reopen our offices at 12:00 Noon on Thursday, September 2nd.

Our CU-Online Home Banking and Memberlink Audio Response will be offline until Friday, September 3rd. If we can turn these applications on earlier than this we will certainly do so. Basically our staff will be verifying that these applications are performing correctly before we turn them on to the membership. The audio response telephone number will change to 1-800-598-8972 after the conversion date. Home banking users may want to sign in before September 1st and save any old e-statements to their hard drive or external storage devices. Any e-statements prior to September 1, 2010 will be available through the credit union after the conversion date. All e-statements generated after September 1, 2010 would be available to the member online as they have been in the past. If any members need help with how to save these older e-statements, please call our Electronic Services Representative at 256-534-2423.

VISA Debit Cards and ATM Cards will be available for use during the conversion process though at different intervals and for limited amounts of $100 or less if the system if offline. Members are encouraged to carry checks and/or cash during the conversion dates in case a particular card does not receive proper authorization for a transaction.

Shared service centers would be unavailable during the conversion dates of September 1st and 2nd also.

This information is being mailed to all members and is posted on our web site. Updates throughout the month and during the data conversion will be posted on our web site, Facebook, Twitter, and through this blog.

There are some exciting enhancements that will be available down the road as a result of this data processing change. These will include mobile banking, automated account alerts, remote deposits, online lending programs, and other technologies designed to improve convenience to the membership.

Fraud Alert for Phishing E-mail

2010-07-26T08:07:00.002-05:00

ACH ALERT:Beware of Phishing E-mail that Claims to be from NACHA

The subject line of the e-mail states: "Unauthorized ACH Transaction." The e-mail includes a link that redirects the individual to a fake Web page and contains a link which is almost certainly an executable virus with malware. Do not click on the link. Both the e-mail and the related website are fraudulent.

Be aware that phishing e-mails frequently have links to Web pages that host malicious code and software. Do not follow Web links in unsolicited e-mails from unknown parties or from parties with whom you do not normally communicate, or that appear to be known but are suspicious or otherwise unusual.

If malicious code is detected or suspected on a computer, consult with a computer security or anti-virus specialist to remove malicious code or re-install a clean image of the computer system. Always use anti-virus software and ensure that the virus signatures are automatically updated.
Ensure that the computer operating systems and common software applications security patches are installed and current.
Be alert for different variations of fraudulent e-mails.

= = = = = Begin Sample E-mail = = = = = =
From: Information
Sent: Thursday, July 22, 2010 8:27 AM
To: Doe, John
Subject: Unauthorized ACH Transaction
Dear bank account holder, The ACH transaction, recently initiated from your bank account,was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below: Unauthorized ACH Transaction Report------------------------------------------------------------------ Copyright Â©2009 by NACHA - The Electronic Payments Association = = = = = End Sample E-mail = = = = = =

Door to Door Alarm System Sales

2010-07-16T13:00:00.002-05:00

Members are advised to exercise caution when dealing with door to door alarm system sales people. To begin with, it is difficult to determine whether the person at your doorstep is a legitimate representative or not. Uniforms and badges can be used by fraudsters to deceive people into thinking that they are connected with a legitimate company. There have been cases where the door to door contact person is really a criminal using the sales routine to look over your home for items to steal later. Once inside your home on a "sales call", they could just rob you on the spot. If you don't know who the person is standing at your doorstep, they should never be allowed inside your home. A confirmation call could be made to the published business number of the alarm company and an appointment could be made at a later date.

If you are truly interested in an alarm system, contact several alarm system companies and arrange appointments for each to present a proposal. Competition is usually a good method of securing a lower price. It would also be a good idea to contact the local Better Business Bureau for the company ratings and history. Since safety is the reason for an alarm system in the first place, do not sacrifice safety by inviting strangers at your door step into your home.

School Supply Loans Offers Value

2010-07-12T11:39:00.003-05:00

Back to school expenses can create a financial strain on teachers and parents, especially in these economic times. North Alabama Educators Credit Union is once again offering our popular School Supply Loan to the membership through September 30th of this year.

Qualified members can borrow up to $500 at 0.00% APR with repayment terms up to 10 months. Payroll deduction or direct deposit is required as a means of repayment on these loans.

There is a small up-front processing fee for these loans and members are asked to contact any Loan Officer for the fee amount and any questions regarding the loan.

These School Supply Loans have been offered for several years now and members have been very satisfied with the availability of the loan. These loans are also available for new teachers as well who must prepare their classes for the school year. The lending criteria for these small loans has been relaxed somewhat to provide a broader range of access to the full membership.

The School Supply Loan is another great example of how the credit union is providing value to our members. We exist to serve the financial needs of our member-owners. This loan may not be a big income producer for the credit union but it does provide a valuable benefit for our members. This is how credit unions are different than most traditional banking institutions.

*We are an Equal Credit Opportunity Lender. Qualifications must be met on all loans. Rates and loan availability subject to change without notice.

Breast Cancer Awareness Shirts

2010-07-08T18:20:00.005-05:00

Our Community Involvement Committee has worked hard the last few years with a variety of ideas and projects to raise money for Breast Cancer Awareness. Each year the committee has designed a shirt that is available for sale with proceeds benefiting Breast Cancer Awareness. These shirts have always been very popular with members and visitors to our branch locations.

Our short sleeve shirts are $15 and long sleeve shirts are $20. There are different colors available other than what you see here. Selections and sizes available do vary by branch so stop by any office to view the shirts available.

You can't read the message on the back of the shirt because of the photo size but it says;

Support the Fighters

Admire the Survivors

Honor the Lost

No Matter the Cost

With Your Help We Will Cope

And

NEVER GIVE UP HOPE...

These shirts are available for purchase to anyone. If you know of someone or a doctor's office that might be interested in these shirts, encourage them to stop by or contact one of our offices.

Independence Day Weekend

2010-07-02T16:46:00.005-05:00

On behalf of North Alabama Educators Credit Union, I want to extend our wishes for a safe and relaxing Independence Day weekend. Independence Day is a time to reflect upon the many freedoms and benefits that we all enjoy as citizens of the United States. If you have a flag, be sure to display it proudly. Many flags were displayed in a variety of ways following the 9/11 terrorist attacks. Why not display that same sense of national pride this weekend?

Credit Union Help - Job Losses & Income Cuts

2010-06-25T15:57:00.003-05:00

The North Alabama area is not immune to the economic troubles taking place worldwide. Unemployment in our area is near 9%. School systems in the area have been forced to layoff employees, reduce hours, and reduce payroll expenses. There are members within the credit union from all types of employers, some that have experienced significant declines in their revenues.

The credit union realizes that bad things can happen to good people. Being laid off or having your pay reduced is traumatic enough. Worrying about how to pay back a loan is usually the least of concerns when you are trying to put food on the table or trying to keep a roof over your head. If you have a loan with the credit union and have experienced a financial set-back, please contact one of our Loan Officers to update us on your situation. There are deferred payments, loan modifications, payment reductions, and other assistance tools available. People are embarrassed at times about their situations and they shouldn't be. The credit union is here for a reason - to help our members with their financial needs.

I can't think of a greater financial need that providing assistance when a job has been lost or when income has been reduced. Talk to us and together we can work out a plan.

Small Loan Amounts Available

2010-06-18T15:35:00.002-05:00

One notable difference that you see at credit unions is the availability of smaller loan amounts on new loans. Qualified members can receive new loan amounts of $100 or more. Most traditional banks require a minimum amount of anywhere from $1,000 to $2,500 borrowed on a new personal loan. Why is this? The small loan is not profitable to the bank. That doesn't mean much to a consumer who has a $150 repair bill and only needs to borrow $150. The difference here is that the credit union's purpose is not focused on profit. We are here to serve and assist our member-owners with their financial needs, however small or large that the needs may be.

This is a good example of a credit service designed to help the bottom line of the consumer, not the bottom line of the financial institution.

Letter to the Editor - Huntsville Times

2010-06-04T16:19:00.002-05:00

Below is the text copy of a Letter to the Editor sent to the Huntsville Times on this date.

The Senate recently added an amendment to regulatory reform that will establish government price controls that will reduce a merchants’ financial responsibility for the payment network they benefit from every day. It’s called interchange; which are what merchants pay to credit unions like ours and other financial institutions for processing a debit card transaction

If passed, this amendment will have a negative impact for our credit union members, as well as millions of consumers in Alabama. The Senate did not hold any public hearings on this interchange provision or conduct any studies before voting, yet it passed anyway. That was a mistake that needs to be rectified before Congress completes its work on this bill this month.

At North Alabama Educator’s Credit Union, the legislation will mean that interchange will cover only a small part of the cost of providing debit card services. Interchange covers the costs associated with credit and debit cards — things like fraud, and identity theft. All of these risks are assumed by us so that merchants can accept debit cards. Not to mention the merchants get paid for the transaction very quickly, sometimes even the same day.

Interchange fees are part of the cost of doing business, much like postage and advertising and they certainly are less costly than returned check charges. While it is true the merchants are paying more in interchange, it is not due to raised fees, but more people are using their cards for everyday purchases. Someone has to pay for these fees, but it should not be the consumer. They like using their credit and debit cards, and it is a service we want to be able to continue to offer.

There is still time for members of Congress to strip out these harmful interchange provisions, which really have no relation to the regulatory or Wall Street reforms the bill is intended to address. Economic times are tough enough these days. Consumers should not have to incur higher costs or accept fewer financial services if this ill-conceived debit interchange proposal were to become law. Please let your lawmaker know you don’t agree with the interchange amendment associated with the regulatory reform bill.

Sincerely,

Greg Olmsted, Manager/President
North Alabama Educators Credit Union

Reverse Mortgages

2010-06-02T19:21:00.005-05:00

It seems like there are quite a few commercials and advertisements lately for reverse mortgages. Members are encouraged to do extensive homework on this type of product before responding to the many offers targeted at senior citizens. Frankly, I see some red flags that seem very similar to the underwriting problems associated with the sub-prime mortgage crisis of the past few years. There is no analysis of a borrowers ability to repay. Income is not an issue. The government insures the majority of these loans. The strength of the loan is based upon the home valuation increasing over time. Sound familiar?

There are no payments on these reverse mortgage loans. That means that loan interest is accruing for years adding tremendous profits to the banks that offer these loans. Reverse mortgages just seem like another mortgage product designed for consumers who may or may not be able to afford the money they are borrowing.

There are many online resources on the topic of reverse mortgages. I encourage members thinking about a reverse mortgage to research these resources. The AARP has good information offering pro's and con's on reverse mortgages. Below is a link to a good New York Times article on the subject - http://www.nytimes.com/2010/04/17/your-money/mortgages/17money.html

Another good resource by the National Consumer Law Center that has some good examples of seniors who have been victimized by brokers for reverse mortgages: http://www.consumerlaw.org/reports/content/ReverseMortgages1009.pdf

Interchange Fee Update - May 27th

2010-05-27T16:56:00.002-05:00

Earlier this year the House passed the Wall Street Reform bill, with no major concerns for credit unions. The bill in the Senate also did not directly impact credit unions, until Senator Richard Durbin’s (D-IL) Interchange Amendment was adopted on the Senate floor by a vote of 64 – 33. It is important to note that there were no hearings or public comment to provide an analysis of the probable financial impact to consumers as a result of the interchange fee amendment. The amendment requires the Federal Reserve to develop regulations to ensure that interchange fees are proportional to costs of the transaction, not the cost of operating a debit card program, which does involve considerable expense and risks. Although there is language to exempt issuers under $10 billion in assets, VISA and the other networks would have no incentive to create two pricing structures and even if they did, merchants may be able to discriminate against what would be the higher priced credit union cards. In addition, merchants would be able to set maximum and minimum limits on purchases by debit cards. For example, they could decide to not allow card transactions on amounts of $5 or less. Regardless of any exemption or carve-out for credit unions, this interchange language would be extremely detrimental to the ability of credit unions to offer debit cards without having to institute account fees and other anti-consumer measures to make up the loss in revenue.

Because the House and Senate bills are different, they have to be reconciled in a “Conference Committee” which is comprised of committee leaders from both parties from the House and Senate, about 20 – 25 members in total. They will put together a final bill called a Conference Report, which is then sent back to the House and Senate for an up or down vote, without amendment. Once passed, it goes to the President’s desk. Making necessary changes (removing this interchange fee provision) in Conference Committee is what credit unions are asking for.

The insertion of this Interchange Amendment into the Wall Street Reform Bill is puzzling. Credit unions are not Wall Street. Credit unions did not create the near financial collapse to the entire country that Wall Street firms did with their complex financial products. Credit union members want to have affordable, convenient access to their funds. Debit cards have been a great product for members because of the convenience, safety, and worldwide acceptance. Debit cards have also been a great product for retailers. How many retailers now have online stores that could have never increased their sales without the card payment system that they now complain about?

It has been said before and I will repeat it again here. The card payment system is not broken. The retailers are profitable, even more so because of the expanded sales opportunities created by online sales. We are asking Congress to leave the card payment system alone and drop the interchange fee amendment from the Wall Street Reform Bill.

I would encourage members to voice their opposition to Congress on the proposed changes to the current card payment system. A special toll free telephone line has been established to allow members the opportunity to contact Congress on this issue. The number is 1-877-223-5275.

NAECU - One of the "Good Guys"

2010-05-18T16:29:00.003-05:00

Madison Magazine ran an article recently on the credit union and our office in Madison. We were very pleased with the positive message relayed in the article. In these uncertain financial times, it is nice to be part of the solution rather than part of the problem.

Check it out! http://madisonalmagazine.com/index.php/business/671-naecu

Action Alert Update - May 14th

2010-05-14T08:26:00.003-05:00

The interchange fee amendment did pass in the United States Senate. We do want to thank our two Senators, Senator Richard Shelby and Senator Jeff Sessions, for voting against the amendment. Additional opportunities to oppose this interchange fee amendment will be available in the future. I thank those members who took the time to review this issue and contact Senator Jeff Sessions for his support on opposing the interchange fee amendment.

Action Alert - Contact Senator Jeff Sessions

2010-05-10T21:47:00.005-05:00

THIS IS A FOLLOW-UP TO THE PRIOR POST:

I am writing to you about an issue that could negatively impact all members of our credit union.

Each time you use your credit union credit card or debit card, a merchant is paid immediately and the card receives "interchange" through a card payment system. This interchange system reflects a merchant's fair share of the costs of this payment system. The Senate is debating S. 3217, the Restoring American Financial Stability Act of 2010. Some amendments would threaten our ability to offer debit and credit cards and allow merchants to interfere with consumer choice by arbitrarily varying the terms of card acceptance. The bottom line is that big retailers want to shift their cost of doing business on to you, our credit union member. If the amendments pass, our credit union could be forced to raise rates and fees, or even curtail debit and credit card offerings in the future. Please contact Senator Jeff Sessions at 202-224-4124 urging him to oppose any amendments to S. 3217 which would affect debit and credit card-issuing credit unions and the card payment system. (Senator Richard Shelby has already indicated his opposition to these amendments).

If any members have any questions regarding the interchange amendment, please feel free to contact me. Your voice and help would be appreciated!

Restoring American Financial Stability Act of 2010

2010-05-06T11:53:00.002-05:00

The U.S. Senate is currently debating S. 3217, Restoring American Financial Stability Act of 2010. This bill is the much publicized "too big to fail" legislation that addresses improved oversight of the large financial organizations and the complex investment products that they have created over the years. As with all good legislation that comes forward, there are amendments and pet projects that get added to bills that have little if anything to do with the core purpose of the initial bill.

Amendments are being considered to S. 3217 that would affect debit and credit card-issuing credit unions and the card payment system. The pending amendments threaten credit unions' ability to offer credit and debit cards to their members and would allow merchants to interfere with consumer choice by arbitrarily varying the terms of card acceptance. The merchant-backed proposals are intended to disrupt the card payment system with the goal of reducing the merchants' financial responsibility for the benefits received from the card payment system.

To simplify, merchants don't like having to pay interchange fees when they accept a credit or debit card for a purchase. They probably don't like paying the light bill either but there are costs of doing business. A merchant that accepts and pays interchange fees for a credit or debit transaction receives their money more quickly, with less risk, and opens the door for online purchases. The financial institution uses the interchange income to cover the costs of processing transactions, managing the card program, overnight accounts to fund purchases, and fraud expenses associated with data breaches usually created by the merchants themselves.

Does anyone think that the merchants will lessen their prices if interchange fees are reduced or eliminated? Do merchants want to start accepting checks for $2,000 LCD televisions? The credit union industry is watching these amendment debates very closely and voicing our concerns on behalf of our member-consumers.

The card payment system is not broken so a "fix" is not necessary.

Target: College - Free Forum May 3, 2010

2010-04-29T11:23:00.004-05:00

The Missile Defense Agency (MDA) is hosting a free forum for parents, school personnel, and community leaders to support and encourage academic success of students in grades 6-12. This forum will be held on May 3, 2010 at the Sci-Quest Hands-On Science Center located at 102-D Wynn Drive, Huntsville, AL 35805. The scheduled times are 6:00 - 6:30 PM for the Presentation and 6:30 - 7:00 PM for questions and answers. The topic for this meeting will be "Resources for Academic Success: Finding a College and Paying for College".

Parents, teachers, counselors (grades 6-12), and community leaders are invited to attend this free forum.

For additional information, contact educationaloutreach@mda.mil.

New $100 Bill Design

2010-04-22T08:10:00.002-05:00

The United States Treasury Department unveiled the new design for the $100 bill which is scheduled for circulation in 2011. There are several new security features added to the new bill. The Treasury Department has an interesting website explaining the new features. A short video highlights the differences. Visit http://www.newmoney.gov/newmoney/Splashpage.aspx for information on the new $100 bill.

Youth Week Activities - Get in the Savings Game

2010-04-19T14:34:00.002-05:00

National Credit Union Youth Week is taking place this week. This year's theme is "Get in the Savings Game" which is an excellent message for our youth today. North Alabama Educators Credit Union had a variety of deals and opportunities during the week to encourage savings by our current and potential youth members.

CU-Succeed Club members, ages 13-18, can open a new share draft account and receive the first box of checks free, first debit card free, no monthly fees, no minimum balances, and receive a $5.00 Sonic Card.

Any new youth members opening a new account during this week will receive $10 towards their new account. This is a good time to open that child's account!

Youth members opening a Certificate of Deposit (CD) for a reduced minimum of $300.00 during the week will receive an additional 15-basis points over the current posted rate AND also receive a $5.00 Sonic Card.

GRAND PRIZE DRAWING: Youth members may enter once each day for the Grand Prize drawing of $50.00 cash to be given away at the Main Office, Sparkman Branch, Athens Branch, and Madison Branch.

Students ages 10 and older, bring your last report card with A's and B's into the office during the week of April 19-23 and we will deposit $5.00 into your account.

Complimentary refreshments will be served on Monday & Friday of this week at the Main Office, Sparkman Branch, Athens Branch, and Madison Branch.

We will end the celebration on Friday afternoon from 3:00-4:30 PM at the Main office location on Whitesburg Drive with games & prizes for the Kirby Kangaroo Club members and a free NAECU T-Shirt for CU-Succeed Club members. SPECIAL GUEST HOMER FROM THE HUNTSVILLE STARS WILL BE AT THE MAIN OFFICE FROM 3:00-4:30 PM ON FRIDAY, APRIL 23RD!

Visit http://www.naecu.org/newsandtips.html for additional details on other youth week activities during the week. A flyer and $10.00 referral coupon are also available.

Annoying Coworkers Survey

2010-04-16T08:08:00.002-05:00

Our Vice-President of Administration came across these categories of "annoying coworkers" based upon a national human resource study.

A great coworker can help you look forward to going to work each day. An annoying coworker, on the other hand, can make you want to hide under the covers. A large survey by the staffing firm Ranstad USA asked employees what their biggest office peeves were. It turns out they all involved coworkers. Annoying ones.

Do you recognize any of the top six most annoying coworker types?

The Psst-er: Gossipers were the number one pet peeve in the survey. While some people like to hear juicy tidbits about the boss or their colleagues, too much gossip can undermine the spirit of the workplace. Plus you're always wondering when the Psst-er will make you the topic du jour.

The Broken Clock: These coworkers stink at time management. They're routinely late for everything, including work. They tend to spend too much time on emails, take long lunches, and then scramble to get others to help them meet their deadlines, which, for some reason, they keep missing.

Mold Guy: Coworkers who mess up communal spaces were third on the list of workplace pet peeves. Their month-old leftovers sport a thick layer of fur in the company fridge. Every office seems to have at least one who stinks up shared spaces.

The Whiffy Wonder: You can smell these coworkers wafting about from the other end of the office. They just wear too much perfume or cologne. Some have an obsession with Obsession. Others feel the need to douse themselves with Old Spice. And hiding in your cubicle won't make the overpowering smell go away.

The Cracker: Crackers are loud. They crack loud jokes, they crack their knuckles, they crackle their chewing gum, they clank spoons in coffee cups like they're calling the cows to come in from the fields. People who work near crackers can find themselves ready to crack.

The Tapper: Tappers are generally quieter than Crackers. But that doesn't make them any less annoying when they're tap-tap-tapping on their personal communication devices during meetings. It's distracting, rude, and yes, just plain annoying!

Fishing for a Cure Bass Tournament

2010-04-14T16:38:00.002-05:00

North Alabama Educators Credit Union is one of the sponsors for an upcoming "Fish for a Cure" Bass Tournament to be held on May 22, 2010.

Details and an entry form are available by clicking HERE.

Proceeds from the event will benefit the credit union's primary fundraising effort, the Breast Cancer Awareness Fund. Our employees continue to develop new ideas and events to help raise money for Breast Cancer Awareness.

Member and community support of these fundraiser events are very much appreciated! If you know an avid fisherman who enjoys these type of fishing tournaments, please let them know. They can enjoy themselves and help the community at the same time!

Account Verification by our Supervisory Committee

2010-03-29T10:38:00.002-05:00

The Supervisory Committee is performing an Account Verification for the March 31, 2010 statement cycle. If any of the information on your statement is incorrect, please respond in writing to: Supervisory Committee, North Alabama Educators Credit Union, PO Box 380428, Birmingham, AL 35238-0428. PLEASE DO NOT send any address changes, loan payments, or deposits to this address. PLEASE NOTE that all e-statement members will also receive a mailed statement this statement cycle as part of this verification process.

An important part of this process is for us to verify that we have good addresses on our members. Do not be alarmed by this Account Verification process. All federally insured credit unions are required to perform an Account Verification on the membership at least once every two years. It is another step to help insure the safety of member funds against improper transactions and account takeovers. Members are encouraged to closely review their account statements EVERY statement period.

Five Signs "Census Taker" is a Crook

2010-03-15T19:54:00.002-05:00

Good article from AZCentral.com.

Five signs 'census taker' is a crook.

PHOENIX (3/15/10)--The 2010 census officially gets under way this week--most forms arrive in mailboxes today through Wednesday. But expect con artists to exploit this once-every-10-years event by getting you to let your guard down and divulge personal information to impersonators (AZCentral.com March 3).

Legitimate census workers go door-to-door from the end of April to July to capture information from households that fail to mail back the form. Crooks know this and will attempt to collect information from you that's not required by the census--personal information that could lead to identity theft.

Take the census seriously, fill out the form, and mail it back. But don't get taken by impersonators with smooth tactics. Know the five signs that point to a census scam:

1. "Please verify your Social Security number." Legitimate census takers don't ask for this. In fact, there are just 10 simple questions on the form—that's it. And a question about your Social Security number isn't one of them.

2. "We need your credit union or bank account number." No, they don't. None of the census' 10 questions asks for financial data (MarketWatch.com Feb. 27). And the Census Bureau will never ask you for your PIN, passwords, or similar access information for credit cards or financial accounts.

3. "Please fill out your census form by replying to this e-mail or visiting this website." That's a sure sign it's a scam, because the Census Bureau never will contact you by e-mail or ask you to answer questions on a website.

4. "Of course I'm a census taker--you know about the census, right?" Legitimate census takers carry official badges and will give you the phone number of the local Census Bureau office so you can verify identities. To be safe, find your regional census office phone number at Census.gov/regions and call to verify identities.

5. "In cooperation with the census, we're asking for donations to a local charity." Legitimate census takers don't collect money for charities or political parties, according to the Census Bureau.

If you think you've been a victim of a census scam, contact your regional Census Bureau office immediately. Don't reply to suspicious e-mails or click on links within e-mails that portend to be from the Census Bureau. Instead, forward the e-mail or website URL to ITSO.Fraud.Reporting@census.gov. Then delete the message. The Census Bureau will investigate and notify you of its findings.

Check Holds & Fake Checks

2010-03-10T11:13:00.003-06:00

Members should be aware that there is no correlation between a check hold being released and the deposited item being a good check. The processing of a deposited item through the Federal Reserve system determines whether a check is ultimately paid by the institution that the check is drawn on. The check hold period applied by the credit union at the time of deposit only indicates when the funds from the deposit will be available to the member. The key point here is don't assume that a deposited item has cleared the institution it was drawn on just because a check hold is released.

Checks deposited to accounts are returned for a variety of reasons. They may be returned for insufficient funds, stop payment, closed account, or other reasons including fictitious item which means that the check is a fake. Members are legally responsible for all items deposited to their accounts. Members are encouraged to know who they are dealing with when it comes to receiving a check. If you don't know who sent you a check and the receipt of the check is connected to a contact made via the Internet or mail, please inform the credit union so that we can investigate the status of the check before it is deposited. If you are being asked to send or wire any money to a stranger from a check received from a stranger or "business opportunity", don't do it. If you think that a check is suspicious in nature, it usually is.

Pictures with Easter Bunny - March 27th

2010-03-05T12:08:00.002-06:00

Please RSVP Laura Simpson at loanclerk@naecu.org or call 256-534-2423 to schedule your appointment time. Members may remember that we did a similar photo session event with Santa and Mrs. Claus this past Christmas. One of the popular options is the $3 e-mail photo option where you can e-mail photos to friends and family members. Keep in mind that all proceeds benefit our Breast Cancer Awareness campaign.

Spring Auto Loan Rate - As Low as 4.75% APR

2010-02-26T16:46:00.002-06:00

Click the video above to view our latest commercial. During the months of March and April the credit union will have reduced rates on our new & used automobile loans. The special rates will be good on purchases or refinances from other lenders. If you have a vehicle financed elsewhere, now would be a good time to refinance before rates start rising. It only makes sense to pay less for your debt. For full terms and rates available, please visit our "LOAN RATES" page on our web site at www.naecu.org.

Tax Preparation Scam

2010-02-17T12:41:00.002-06:00

Consumers are being drawn in by individuals claiming to be tax preparers. Consumers provide their personal information (i.e., name, social security number, etc.) to have tax refund completed and the phony tax preparer inflates the information as much as possible with fraudulent information. (i.e., claiming children they don’t have, day care expenses, etc.)to obtain a larger refund. The tax refunds are transmitted as a direct deposit (ACH credit) to either a newly created account or an existing account with an impersonator added as a joint owner These accounts are being established by either the impersonator or their recruiters. Once the tax refund has been deposited into this account, the impersonator or recruiter withdraws their fee and the remainder of the ACH credit goes to the tax recipient.

The key here is to deal with a reputable tax preparation group. There should NEVER be a reason to open an account with a tax preparer as a joint owner. Consumers who engage in this type of transaction are filing fraudulent tax returns and would most likely have Internal Revenue Service problems as a result. A healthy tax refund is only valuable if you get to keep it.

Secret Shopper Scam

2010-02-09T09:09:00.004-06:00

Below is an actual example of a Secret Shopper scam. The scam is that you receive a fake check and are then directed to send money via a Moneygram or Western Union, pocketing the difference as your compensation for "evaluating" the money transfer transaction.

"Our online data source has identified you as a candidate interested in an additional income part-time job. Therefore we are pleased to invite you to participate in a paid Triple "S" Program (Secret Smash Shopper) in your area of residence as a Customer Service Evaluator of selected retail stores, restaurants, and various other commercial establishments making predetermined purchases and evaluating the customer service level of the stores and service providers. Secret Shopping or Mystery Consumer is a tool used by market research companies to measure quality of retail services or gather specific information about products and services.

As one of our possible 5,700 shoppers selected for this project, you visit selected businesses in your area and secretly evaluate things like customer service, store location, and appearance as well as product quality. If you accept this offer, the current consumer services evaluation you are undertaking will attract a participation pay of $300.00 per week. After a few evaluations your participation will be reviewed with the possibility of it going up to $450.00 per week. Depending on the company you will be assigned and the tasks involved participation pay can go as high as $600.00 a week after six months. Upon accepting this offer you must keep your identity and assignments as a secret shopper CONFIDENTIAL in order not to introduce any form of bias to the data you collect. You must not take this letter to your assignments.

This assignment is put together to be completed at two different locations. The evaluation will take place at any MONEYGRAM or WESTERN UNION agent bear you or as determined by your coordinator. The objective of this assignment will be to evaluate the effectiveness and efficiency of the payment system. You will pose as a customer sending the stipulated amount listed below to a supposed relative of yours residing at a location your Training Coordinator will provide to you. This offer expires 7 DAYS from the day you call in the receipt of this letter. This program is run on a weekly basis.

Below is a breakdown of the enclosed check bearing the required funds to cover your first week's assignments as follows:

1. Participation Pay for first week = $300.00

2. Stipulated amount for Money Gram/Western Union = $2,600.00

3. Service Fee by Money Gram/Western Union = $200.00

TOTAL AMOUNT = $3,100.00

Please Call your Assigned Training Coordinator at 1=800-###-#### for any further clarification or if you do not understand the offer. Your coordinator will provide you a computer generated receiver name you will need to complete for your first assignment. Withdraw the required amounts and proceed to evaluations. Upon completion of evaluations, notify your coordinator and fax your market report forms and all receipts."

Pretty slick, huh? There are many variations of this same scam so avoid these type of employment offers. Anytime you asked to send money to a stranger from funds given to you by a stranger, you should not engage in that transaction. There are potential criminal implications for members who negotiate counterfeit checks as well.

Twitter Account for NAECU

2010-02-05T11:16:00.004-06:00

North Alabama Educators Credit Union now has a Twitter account. For those who "tweet" or follow "tweets", this will be a good resource for current news, tips, alerts, scams, weather closings, and events taking place. Here is the link for our Twitter site; https://twitter.com/naecu .

We had a poll survey on our web site last fall that indicated that roughly 30% of those taking the survey would be interested in the credit union having a Twitter page.

Office Closings Due to Weather

2010-02-02T16:48:00.002-06:00

The credit union has altered office hours in recent weeks due to inclement weather conditions in the Tennessee Valley. I thought that it might help members to understand the process on how and why we change our business hours in relation to weather conditions.

To begin with, safety of our employees is the primary determining factor in adjusting our operating hours due to weather. Employees are required to be here so they cannot leave on their own whenever weather conditions deteriorate. It is the responsibility of credit union management to estimate future travel conditions and to place employees on the road at a time when they will be safe. Emergency management resources, local radar, and weather media all play a part in trying to determine current and future weather conditions.

If we do have to close early or open later, the objective is to make this determination with several hours of notification being available to the membership. All three major television networks in this area (ABC, CBS, and NBC) are contacted as soon as possible to report any change in our operating hours. Our credit union home page is updated with the weather closing information being prominently displayed at the top of the page. Home banking users also receive a broadcast message upon signing in about any closings. Our Facebook page is updated to report weather closing information. The credit union is in the process of establishing a Twitter account and this would be another excellent means of communicating weather closing events.

Contrary to popular belief we do not follow the weather closing schedules of school systems in the area. Schools have built in weather days in their calendars. The credit union does not.

If inclement weather is possible in the area, either call the credit union or visit the credit union's home page for potential weather closing information. The television web sites can also be visited for their list of business closings/delays. (Visiting their web sites is much faster than waiting for closings/delays to scroll across the television screen.)

Weather closings and delays do occur at times. This is another reason why VISA Debit Cards and direct deposit are such great services as they provide account access whether our offices are open or not.

54th Annual Membership Meeting

2010-01-26T10:31:00.002-06:00

Our 54th Annual Membership Meeting will be held on Monday, February 8th at the Holiday Inn-Research Park in Huntsville, Alabama. This is the Holiday Inn in front of Madison Square Mall. The meeting will begin at 5:00 PM with complimentary refreshments. The business session of the meeting will start at 5:30 PM.

IMPORTANT NOTE: Our offices will be closing at 4:00 PM on this date so that our employees and members can participate in the annual meeting.

At the conclusion of the business session, a drawing will be held among those members in attendance for total cash prizes of $2,150. This amount includes a Grand Prize amount of $500 to be given away as the last prize! Winning that $500 will be a nice evening for someone.

We encourage members to attend the meeting. As members, this is your credit union. Information on the credit union this past year and moving forward will be shared to help provide a good overview of North Alabama Educators Credit Union and the industry as a whole.

Phishing Attacks Increase Nearly 600% in 2009

2010-01-06T11:26:00.002-06:00

Criminal phishing (email), smishing (text messaging), and vishing (telephone) attacks increased nearly 600 percent in 2009 according to the Anti-Phishing Working Group. Unsuspecting credit union members continue to respond to fraudsters who contact them through these various methods to obtain their personal and financial information. These scams are well-designed to mimic legitimate organizations (including credit unions), so it's often too late when members realize that they have been swindled.

The following are examples of phishing requests mimicking credit unions:

"Your account has been temporarily suspended because of a security breach at your credit union. Please contact our security department to reactivate your account."

"Your credit card was suspended. Our customer service department needs to confirm your information to reinstate your card."

"Your loan is delinquent. Payment is needed immediately (over the phone)."

"You can receive a reduced interest rate on your loan. We need to confirm your information."

Members should NEVER respond to requests such as these that appear to be from a credit union or other trusted organization, no matter how urgent or persuasive the request. Keep in mind that e-mails and Internet pages created by scammers may look exactly like the legitimate organization. Instead, members should initiate communications using the published customer service number of the organization.

The credit union does have an anti-phishing service available to monitor Internet sites and take down fake websites when they are exposed. If members receive a fraudulent e-mail that has a phished site mimicking North Alabama Educators Credit Union, please contact the credit union immediately so that the phished website can be taken offline.

$1,500 Scholarship from NAECU

2009-12-28T14:25:00.004-06:00

North Alabama Educators Credit Union is offering a $1,500 scholarship in 2010. Applications will be available starting January 1, 2010 through April 1, 2010. Applicants must be a 2010 graduating high school senior or equivalent. A primary membership account with NAECU is required prior to the awarding of the scholarship in 2010. Keep in mind that all students in Madison, Morgan, and Limestone counties of Alabama are eligible for membership in North Alabama Educators Credit Union. Relatives of existing members are also eligible for membership.

The application is available online on our home page at http://www.naecu.org/. Applicants can also stop by any NAECU branch office to receive a scholarship application. Good luck to all applicants!

Merry Christmas from NAECU

2009-12-22T16:17:00.002-06:00

From the officials, management, and staff of North Alabama Educators Credit Union

- Merry Christmas and best wishes for a safe holiday season.

Oh, You Better Watch Out....

2009-12-16T16:05:00.005-06:00

The holiday season is a wonderful time of the year. Unfortunately, the holiday season is also a prime time for fraud activity. Member education and awareness is so important during this shopping season as so many individuals face financial difficulties during these economic times.

Below are some Holiday Fraud Prevention Tips to help protect against becoming a fraud victim this holiday season;

Ensure that receipts reflect the correct transaction amount.

When performing a PIN transaction, ensure that others are not watching you to capture your PIN number.

When using a debit card, you may select "Credit", which requires a signature and extends the $0.00 member liability under the VISA/MasterCard association rules.

Review all accounts (checking, savings, credit card) activity daily.

Lower your credit limit on credit cards during the holidays.

When paper checks are converted at a merchant to an ACH electronic draft, store voided checks safely to prevent counterfeit checks or unauthorized ACH transactions.

Be suspicious of emails from unknown parties; don't open the email or click any links within them. Watch for electronic greeting cards from strangers.

Shop online with trustworthy merchants who require security information such as address verification and the CVV2/CVC2 number on the back of your card.

When shopping in person or using an ATM, be aware of your surroundings and report any unusual activities.

Never leave your purse, wallet, or cards unattended. Do not lock your purse in a trunk at a public place, thieves can observe this and quickly break a window and release the trunk lock.

Finally, if an offer seems too good to be true, it probably is, so be cautious.

The average fraud victim loses over $900 as a result of a fraud case. No one wants to part with $900 these days so be cautious and safe this holiday season.

Animated Unemployment Map by County

2009-12-07T16:50:00.002-06:00

The rising unemployment rates throughout the country are provided in this animated map that tracks the history from January 2007 to October 2009. The results are reported monthly by county throughout the United States.

The visual effect is sobering to say the least. Click HERE or the map above for the link.

Pictures with Santa - Saturday, December 5th

2009-11-25T16:21:00.006-06:00

Santa and Mrs. Claus will be available on Saturday, December 5th at our main office between the hours of 9:00 AM to 12:00 PM for pictures. Our main office location is 2309 Whitesburg Drive South, Huntsville Alabama 35801.

The first picture is only $5.00 and includes a professional 5 x 7 photo and a Christmas stocking filled with goodies. Additional pictures would be $3.00 or we can email the picture in a digital format for $3.00 also. (This is great for sending to friends and relatives).

For your convenience, please RSVP Laura Simpson at loanclerk@naecu.org or call 256-534-2423 to schedule an appointment time.

All proceeds will benefit our year round Breast Cancer Awareness fundraising campaign.

Helping Schools Promotion delivers $4,900 to Area School Systems

2009-11-23T17:15:00.004-06:00

Area schools will be receiving much needed money for school supplies as a result of our recent Helping Schools Fall Auto Loan promotion. Under the promotion, qualifying automobile loans earned a $50 donation from Schoolcraft to the school system of the member's choice. The school system that collected the most "votes" or entries would have the total doubled by the credit union.

Huntsville City Schools was the winner! Huntsville City Schools earned 26 votes for a total of $1,300, which North Alabama Educators Credit Union is doubling to a grand total of $2,600 to be given to Huntsville City Schools in the form of a gift certificate to Schoolcraft. Congratulations to Huntsville City Schools on winning the bonus money.

Other school systems earned supply money as well. The other school systems include;

Decatur City Schools - $900
Madison County Schools - $500
Madison City Schools - $300
Limestone County Schools - $250
Athens City Schools - $150
Athens Bible School - $150
Randolph School - $50

A total of $4,900 is being donated to the school systems!

The Schoolcraft certificates will be delivered in the coming weeks. Special thanks are extended to the credit union members who brought their automobile loans to the credit union for financing.

Fraudulent ACH Emails are Circulating

2009-11-12T13:56:00.004-06:00

PLEASE BE AWARE OF THE FOLLOWING FRAUDULENT EMAILS TAKING PLACE.

Falsified Emails Purportedly from NACHA are Circulating:

Random individuals and/or companies may have received a falsified e-mail with the subject title "Rejected ACH Transaction." This e-mail appears to be from NACHA - The Electronic Payments Association telling them that there is a problem with an ACH transaction they have originated. The e-mail includes a link which redirects the individual to a fake web page which appears like the NACHA website and contains a link which is almost certainly executable virus with malware. See sample below.

IF YOU GET ONE OF THESE EMAILS DO NOT CLICK ON THE LINK! The e-mail did not originate from NACHA and the website does not belong to NACHA. A sample of the phishing email follows:

= = = = = Sample E-mail = = = = = =

From: nacha.org [mailto:report@nacha.org]
Sent: Thursday, November 12, 2009 10:25 AM
To: Doe, John
Subject: Rejected ACH transaction, please review the transaction report

Dear bank account holder,

The ACH transaction, recently initiated from your bank account, was rejected by the Electronic Payments Association. Please review the transaction report by clicking the link below:

"Unauthorized ACH Transaction Report" (this is the how the link is presented in the phishing email).

======= End Sample E-Mail =======================

Concerns over Consumer Financial Protection Agency Proposal

2009-11-03T11:28:00.002-06:00

The United States Congress is working on all sorts of "fixes" to help prevent some of the large scale financial failures that we have seen over the past year. A new agency to oversee large financial institutions is one idea being considered by Congress. This new agency would be called the Consumer Financial Protection Agency (CFPA) and one amendment to this proposed legislation (H.R. 3126) would be that the proposed CFPA's examination and enforcement authority be limited to credit unions with more than $1.5 Billion in assets and banks with more than $10 Billion in assets. Under the proposal, financial institutions under the proposed caps would remain under the enforcement authority of their current regulator.

I see several problems with this proposal. First off, we should not be dividing the credit union industry into separate regulators. All credit unions, big and small, share the same structure and are owned by their member-owners. The National Credit Union Administration is fully capable of overseeing credit unions of all sizes. Where there have been problems in credit unions, the focus should be on how good was the oversight from the existing regulator at the time. The knee-jerk reaction sometimes is to assume that a new law or regulation will fix a problem when the original problem could have been prevented by the existing laws and regulations if enacted properly. The credit union industry as a whole was not the source of the financial problems that we have seen over the past year.

I also don't see why there is an asset size differential between the large credit unions and banks for the proposed agency. Is a $1.5 Billion dollar credit union somehow more complex than a $10 Billion dollar bank? If anything I would see the opposite to be true in terms of balance sheet complexity between a bank and a credit union.

North Alabama Educators Credit Union currently holds roughly $73 Million in total assets so we would not be included under the authority of the new proposed agency. Regardless of this fact, a unified credit union industry is in the best interest of all credit unions so we stand opposed to the proposed H.R. 3126 because of this different treatment based upon asset size.

Drawing for Quilt - Funds to Benefit Breast Cancer Awareness

2009-10-22T08:05:00.002-05:00

The credit union is accepting $1 tickets towards a drawing for the quilt pictured above. All proceeds from the ticket sales will go towards our Breast Cancer Awareness fundraising campaign. Currently, the quilt can be seen at our main office on Whitesburg Drive. The quilt will also be displayed at our Sparkman Drive and Madison Branch offices in the coming weeks. It was first displayed at our Athens office. Special thanks are extended to one of our employees, Leah Miller, for taking the time to create this beautiful quilt for the drawing. Pictures don't do justice to the quilt so stop by and see it for yourself. We appreciate the participation of our membership in the various Breast Cancer Awareness fundraising efforts throughout the year.

Credit Union Day & Shred-it Day

2009-10-14T11:14:00.003-05:00

On Friday, October 16th, the credit union will be hosting Credit Union Day and Shred-it Day for our credit union members. Complimentary refreshments will be provided at our Main Office, Sparkman Branch, Madison Branch, and the Athens Branch on October 16th. Each of these offices also has a gift basket that will be awarded by a drawing at the close of business on Friday. Members can register all week for the drawing. (Please limit entries to one per day).

A popular service for members has been our semi-annual free shredding service. Our 2nd "Shred-it Day" this year will be held at our Main Office on Whitesburg Drive on Friday, October 16th between the hours of 11:00 AM to 1:00 PM and 3:00 PM to 5:00 PM. Document Destruction Services will have their truck parked in our front parking lot to provide this free service. All records will be destroyed on-site within clear view of the member. MARK YOUR CALENDARS! We always hear from members who wanted to shred documents but forgot about the "Shred-it Day". This information was included in our last newsletter. We do ask that members restrict their shred items to paper items only and limit the amount to 40 pounds.

We appreciate our credit union members and hope that you stop by to enjoy the activities this Friday.

Home & Family Finance Resource Center

2009-10-06T22:37:00.004-05:00

Credit union members have another good resource available with the addition of the Home & Family Finance Resource Center on our web site. This site is hosted by the Credit Union National Association (CUNA) for use by subscribing credit unions across the country. The web site provides very useful tips, articles, and videos to help educate consumers about a wide variety of financial topics. There are monthly "Family Fitness Challenges" that award cash prizes. Members of all ages can benefit by visiting the site. Teachers may even find some of the resource information helpful for their students. A link to the Home & Family Finance Resource Center is listed on our "HOME" page and "WEB LINKS" page of North Alabama Educators Credit Union. For now, you can click on the logo above to visit the site.

North Alabama Educators Credit Union is pleased to make this online financial resource available for the purpose of helping to improve financial literacy. Money doesn't come with instructions and financial mistakes can take years to overcome. Financial education is a good thing!

Facebook page for NAECU

2009-09-25T16:41:00.004-05:00

North Alabama Educators Credit Union is now on facebook! This is another technology resource for connecting and communicating with our credit union members. Special thanks are extended to Selina Billions, our Vice-President of Administration, for creating the facebook page. Additional photos, video's, and other information will be added to the facebook page. Check it out from time to time. Direct links to the facebook page are posted on our "HOME" page, "NEWS & TIPS" page, and our "WEB LINKS" page. (For now you can click the facebook box above).

Tip for VISA Debit Card Holders

2009-09-23T09:51:00.003-05:00

For most members, it is NOT recommended that a VISA Debit Card be used for hotel and automobile reservations. The problem originates from the excess authorization holds that hotels and car rental companies place on the VISA Debit Card at the time of the initial reservation or check-in. Members who do not have an account balance well above the amount of the transaction may see transactions declined on other purchases because of the high authorization hold placed by the hotel or car rental company. Most hotel and car rental companies realize this potential problem and discourage the use of a VISA Debit Card for reservations. It is advisable to utilize a credit card for the initial reservation transaction. The VISA Debit Card should only be used upon final checkout of a hotel room or return of a rental vehicle.

2009-09-21T09:29:00.002-05:00

North Alabama Educators Credit Union is participating in a statewide food drive effort to assist the local food banks. The Alabama Credit Union League has coordinated this event with credit unions and regional food banks throughout Alabama. Your help is needed! Everyone has a few extra canned items or other non-perishable food items in their pantry. Please consider a donation to help others in your community who are not as fortunate. The economic downturn has affected many Alabama families and the regional food banks are there to help families who need assistance with putting food on the table.

Stop by any North Alabama Educators Credit Union office to drop off a donation. Donations are being accepted through October 2nd. Your donation would be greatly appreciated!

H1N1 Flu Precautions

2009-09-14T11:58:00.002-05:00

Everyone is aware of rising concerns with the H1N1 Flu Virus. Businesses and organizations of all types are having to install procedures to protect employees and the public against the transmission of the virus. Please do not be alarmed when you see notices posted at our entrances requesting drive thru access only for anyone running a fever or experiencing flu-like symptoms. This step is voluntary but we do ask for your cooperation. Our employees are washing their hands throughout the day. There are different locations within our offices where members and visitors can do the same. We are asking our employees to stay home if they do not feel well. The same is requested of our membership and any visitors to the credit union. Steps to minimize person to person contact within the offices will also be utilized. Again, please realize that we are just trying to reduce the risks of virus transmission.

Please be advised that should H1N1 Virus cases increase considerably in our area, the credit union will reduce office access areas to our membership. Drive thru only access or isolated offices within our branches would be made available to decrease the exposure potential. The credit union would be open and available to our members. It is also anticipated though that any severe flu outbreak would result in less people wanting to get out and possibly expose themselves to the virus. Cash travels from person to person so it would not be the ideal source of funding purchases and services. A VISA Debit Card would provide better security against the flu virus, so long as the point of sale terminals are wiped down on a regular basis.

Members are encouraged not to panic. All financial institutions are taking steps to protect their clients (members for us) and their employees. There is a good link on this blog page that provides good resource information on the flu virus.

Helping Schools Promotion

2009-09-04T17:03:00.002-05:00

Everyone knows about the funding deficiencies within our school systems. Money for supplies to teachers and administrators has been reduced in most school systems. North Alabama Educators Credit Union would like to assist our sponsor school systems with supply needs.

Our Helping Schools Auto Loan promotion can help. From now through October 31st, the credit union will donate $50 in the form of a Schoolcraft gift certificate to the school system of the member's choice (within our sponsor groups) on every $10,000 qualifying automobile loan. The promotion is good for purchases or refinances from other institutions. All entries for each school system will be totalled at the end of the promotion. The school system that has collected the most entries towards their school system will have the additional benefit of having their amount DOUBLED by the credit union. In the event of a tie, the DOUBLED amount would be split among the school systems tied for the lead. If the winning school system had 20 entries, the $1,000 amount would be DOUBLED to a $2,000 total! This is just an example, we would love to see a much higher donation amount.

The credit union member is also benefiting from this promotion in that they are receiving a low fixed rate as low as 4.75% Annual Percentage Rate on the loan. (For qualified members - visit www.naecu.org for our LOAN RATES page for rates & terms available). The member receives a low loan rate AND helps out their school system at the same time.

This really is a win-win situation for the member and the school systems. It is also good for the credit union in that we receive a good member loan and help out the community in the process. We will be posting total updates on our web site to track the progress of the promotion.

Good luck to each eligible school system!

Principally Speaking Network

2009-08-28T17:30:00.002-05:00

I was privileged to attend the first Principally Speaking Network meeting that was held earlier this week at Dynetics. The Schools Foundation has created this program designed to bring together principals and administrators from the school systems of Huntsville City, Madison City, and Madison County. The idea behind the program is to share resources and talents among the group. There was a very good turnout for the first meeting. Additional meetings are planned during the school year. North Alabama Educators Credit Union is a Contributing Sponsor of the Principally Speaking Network. Dynetics, another Contributing Sponsor, is providing a first class meeting facility for these meetings.

We are pleased to participate and assist area schools with this program. If you are interested in information about the Principally Speaking Network, please visit The Schools Foundation web site at http://www.theschoolsfoundation.org/ .

CO-OP ATM Network - 28,000+ Free ATM's

2009-08-18T15:25:00.003-05:00

Our members with a VISA Debit Card or ATM Card now have over 28,000 ATM's available nationwide where an ATM withdrawal can be made without a fee. The credit union is now a member of the CO-OP Network, a shared network of ATM's throughout the country. In the Huntsville and surrounding areas, all Redstone Federal Credit Union ATM's and Publix Grocery Store ATM's will not charge a surcharge for an ATM withdrawal to members of NAECU. Please note - we do have an internal $0.50 fee for ATM balance inquiries at one of these ATM's so please utilize either our free 24-hour Memberlink audio response system or our free home banking system to monitor your available balance. ATM withdrawals from a CO-OP Network ATM are totally free since there is not a fee from the ATM owner or NAECU for the transaction.

To find a surcharge free ATM location near you, use the CO-OP ATM locator web site listed below;

http://www.co-opfs.org/public/locators/ATMlocator/index.cfm

There is also a method of retrieving available locations through a text message on your cell phone. Information on this access is available on the web link above. The CO-OP link will be posted on our home page for convenient access.

Members are also reminded that surcharge free cash can also be obtained by using the "cash-back" feature when making purchases at grocery stores and retailers. If you are already making a purchase anyway, it eliminates the need for a trip to the ATM.

FBI Fraud Alert Checklist

2009-08-14T08:29:00.002-05:00

The Federal Bureau of Investigations (FBI) has an excellent Fraud Alert Checklist on their web site to help consumers from becoming victims of check fraud. I would encourage members to print out the checklist, forward the web link to friends and relatives, or make the checklist available in an employee break room or common meeting area. Check fraud is a multi-billion dollar industry and consumers continue to receive these fake checks and become victims as a result. Consumer awareness to this type of fraud is the key to prevention. You might help someone from becoming a victim. Here is the link;

http://www.fbi.gov/majcases/fraud/fraud_alert.pdf

Overdraft Privilege programs

2009-08-12T16:42:00.003-05:00

When you offer checking accounts, there are times when items are presented for payment on an account that does not have sufficient funds to cover the item. This is called an overdraft. What happens when you have an overdraft? It really depends on what the credit union member has done in advance to prepare for this overdraft situation. The recommended course of action is to request an Overdraft Loan for the checking account. If a check is presented for payment on the account and there is not sufficient funds to cover the check amount, an Overdraft Loan will pay the check amount up to the approved limit on the Overdraft Loan. There is a small fee for the transfer and daily interest on the loan until the balance is paid. Members can also establish automatic share overdraft sources from other savings accounts within the credit union.

If there is not an Overdraft Loan or automatic share overdraft source on the account, the credit union has a dilemma on its hands. Does the credit union return the presented item for payment or pay the item? If the item is returned, an non-sufficient funds (NSF) fee of $25 will be charged PLUS the member will most likely receive a returned check fee by the vendor or merchant who accepted the check initially. A $50 check can quickly cost $100 or more if returned. Overdraft Privilege programs allow the credit union to cover (pay) the presented item up to a certain amount, but still charge the $25 NSF fee for the overdraft. This saves the member the returned check fee from the vendor or merchant PLUS avoids the embarrassment of a returned check item. The objective of Overdraft Privilege programs is to provide a safety net should an unexpected overdraft occur. Overdraft Privilege is not a loan though and should not be considered a line of credit. Overdraft Privilege is MORE expensive that traditional overdraft loan protection. This is why members are encouraged to apply for traditional overdraft loan protection to provide a more economical safety net should a mistake or emergency situation create an overdraft. Members are also encouraged to utilize the free services of home banking and 24-hour audio response to monitor their account balances and history.

Overdraft Privilege or "courtesy pay" programs have taken some heat in national news media articles recently. Much of the concern with Overdraft Privilege programs seem to center around the availability of access with VISA debit cards and ATM's. North Alabama Educators Credit Union does not provide access to Overdraft Privilege through these electronic channels. Our program provides for coverage of items already written or authorized by electronic draft. If these items were returned, the member would have expenses from the merchant or vendor associated with the item being returned. This can not be said for a denied VISA debit or ATM transaction.

In the end, it really is the member's responsibility to monitor their own accounts and prevent overdrafts when possible. Overdrafts do cost money. Members are encouraged to stay within their available balances and avoid costly overdrafts.

Cash for Clunkers

2009-07-27T11:58:00.002-05:00

Most people have probably heard about the "Cash for Clunkers" government program. Exact details of the program were unknown until the 135 pages of rules were provided last week.

A brief overview of the program is as follows;

The eligible "clunker" has to be in running condition, able to be driven, and can't be more than 25 years old. An exception to this rule would be very large pickups and vans (defined as 8,500 to 10,000 pounds of gross vehicle weight) that must have been built since 2001.

The program runs through November 1st and is retroactive to July 1st.

You must have owned your "clunker" for at least a year and be able to prove it. You must be able to show proof of insurance for the previous year.

"Clunkers" must get get less than 18 miles per gallon (mpg) combined fuel economy, as rated by the Environmental Protection Agency. The new car being purchased must obtain at least 22 combined mpg, a new truck or SUV must be rated for at least 18 mpg. The program only applies to new vehicles being purchased.

Here is where the cash part comes into play: If your "clunker" is traded for a new car that achieves 4 to 9 miles per gallon better fuel economy, the cash credit is $3,500. If it gets 10 mpg or more better than the old car, the credit is $4,500. If you are trading in an SUV or pickup and want to buy another similar vehicle, you get $3,500 if there is only a 1 mpg improvement, and $4,500 for a 2 mpg or more improvement.

All "clunkers" traded in under the program must be destroyed, not resold.

The government web site for the "Cash for Clunkers" web site is www.cars.gov .

Interchange Fee Dispute

2009-07-14T10:20:00.002-05:00

Retailers are asking Congress to consider regulations and restrictions on interchange fees paid by retailers when they accept credit and debit cards for purchases. The retailers are claiming that the interchange fees are “too expensive” and drive the costs up on products and services purchased by consumers.

I beg to differ on this issue. First off, retailers are receiving their money quickly and efficiently for items purchased when a credit or debit card is used for a purchase. Compare this to accepting a check for payment, which may or may not be paid when it is presented to the institution. Insufficient checks or counterfeit checks are a considerable risk when accepting checks for payment. Returned check charges and fraudulent checks would hurt their bottom line as well. Check deposits would have to be made with a financial institution that would result in several days before the merchant received their money on the checks accepted.

Financial institutions do earn interchange fee income when credit or debit card are used. This income though is necessary to cover our costs associated with providing this convenience. Interchange fees cover the costs of data processing, card fraud, and defaults on credit cards. Consumers like using their credit and debit cards and it is service that institutions want to continue offering in the future.

Frankly, if interchange income was eliminated or drastically reduced on credit and debit card transactions, all institutions would have to re-evaluate their card programs. New fees and account restrictions would have to be created to cover the expenses associated with running the program without the interchange income.

The big retailers seem to want something (convenience and protection against fraud) without having to pay for it. The current interchange fee structure has been working for years and, as the saying goes, “If it ain’t broke, don’t fix it”.

Mailings on VISA Debit Cards and ATM Cards

2009-07-13T08:13:00.002-05:00

Members are advised to watch their mail closely if they are expecting a new VISA Debit Card or ATM Card. A new card can be mailed either as a new card, a normal replacement cycle to replace an upcoming expired card, or as a replacement to a card that may have been compromised in an outside data breach. As an example, if your active card expires in the month of July you would be receiving your new replacement card during the month of July. (The old card would be good until July 31st). The expiration date is embossed on the front of your VISA Debit Card or ATM Card. Review your own expiration date(s) so that you know when to be expecting a new card.

On a card replacement due to a data breach, we mail out letters to all members impacted by the compromise and inform them that a new card will be mailed within a specified time. Unless there is active fraud taking place on our card base, most members will still be able to use their old VISA Debit Cards or ATM Cards for at least 30 days. Any data breach letters sent would specify the time frames surrounding the new and replacement card.

One problem that we are seeing with mailed cards is that members don't always open the mailed envelope containing the replacement card(s). For security reasons, there are no obvious markings on the mailed envelope that would indicate that a VISA Debit Card or ATM Card is inside the envelope. The idea with the plain envelope is to prevent theft of the cards from the time it is shipped out until the member receives the mailing. The return address on the mailings has our PO Box 128, Huntsville AL 35804 address. On some mailings it has Card Center NAECU as the sender's name.

If you are expecting a new or replacement VISA Debit Card or ATM Card, please watch your mail closely and look for an envelope with the PO Box 128 sender address.