Mailings on VISA Debit Cards and ATM Cards

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.

Earn $10 for Referring New Members

Existing members of the credit union can help a friend or relative while also helping themselves with our Membership Months promotion. The credit union will pay $10 to existing members who refer new members to join North Alabama Educators Credit Union using our Membership Months coupon. (Link below) The new member who joins will also earn $10 towards their new account. A win-win for all!

People sometimes hear our name "North Alabama Educators Credit Union" and think that you must be a teacher to be a member of the credit union. This is not the case. There are other ways to be eligible for membership. They include;

All students (K-college) living in Madison, Morgan, and Limestone counties in Alabama.
Any relative of an existing member in the credit union
PTA/PTO/PTSA members of eligible sponsor schools throughout the Tennessee Valley
All retired teachers living in Madison, Morgan, and Limestone counties in Alabama.
Employees of private schools and day cares in Madison, Morgan, and Limestone counties.

All employees of the eligible school systems are eligible for membership. This includes school bus drivers, cafeteria workers, and support staff.

Help the credit union grow its membership and earn some money in the process. Your referral will thank you for leading them to the credit union. Once a member, they could also refer new members and earn some cash!

The link below has the Membership Coupon near the top of the page. The page also provides a more detailed list of eligibility methods.

Here is the link; http://www.naecu.org/aboutus.html

$250,000 Federal Insurance through 2013

The Helping Families Save Their Homes Act of 2009 includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013. This higher level of coverage was originally set to expire December 31, 2009. Investors with deposits exceeding $100,000 will now have other time deposit options to consider that would maintain full federal share insurance up to the $250,000 threshold.

Hopefully, the $250,000 federal insurance coverage limit will be made permanent at some point in the future. It would seem very difficult to revert back to the old $100,000 insurance coverage in the future. To be clear though - the $250,000 share insurance coverage is only guaranteed through December 31, 2013 at this time.

The National Credit Union Administration (NCUA) has a good Share Insurance Tool Kit available on their web site to help credit union members understand how eligible insurance coverage is calculated. Visit http://www.ncua.gov/Resources/ShareInsuranceToolkit.aspx for information.

School Supply Loans

Teachers and parents have school supply expenses that can drain the pocketbook. Our annual School Supply Loan has been a popular loan by our members. Qualified members can borrow up to $500 with a 0.00% Annual Percentage Rate. These loans are paid through payroll deduction or direct deposit over a 10-month period which would equal $50 per month. A small processing fee of $25 does apply for these loans. The net cost of these loans is well below most normal unsecured loans.

This type of loan is also well below the cost of payday lenders and other check cashing companies. If you need $500 for school supplies or any other worthwhile reason, this loan is a genuine member benefit. This is the type of loan that you will only see at a credit union. The "for profit" institutions would not make enough money on this type of loan to take the time or effort to process the loan.

As always with any loan, qualifications must be met. We are an Equal Credit Opportunity Lender. The minimum qualifications though for this School Supply Loan are less than most other credit union loans. Contact one of our Loan Officers for information. This loan is available through October 1, 2009.

Buyers Beware - Kevin Trudeau

You have most likely seen the info-commercials of Kevin Trudeau, the self proclaimed "consumer advocate" who is now selling books on eliminating debt and obtaining free money. Anyone considering such a purchase might want to perform a little research on this "consumer advocate". What caught my eye was a common theme of people being charged for a newsletter of his that they did not want. The Federal Trade Commission (FTC) has handed down several fines and cease orders to Mr. Trudeau. Here is a FTC link on a public release posted in 2009;

http://www.ftc.gov/opa/2009/01/trudeau.shtm

If you perform a Google search on "Kevin Trudeau fraud", you will find more than enough resources to question his claim as a "consumer advocate".

Collateral Protection on Loans

Members with collateral loans are required to maintain insurance coverage that protects North Alabama Educators Credit Union from financial loss as a result of damage or destruction of the property securing the loan. Comprehensive and collision coverage is required. The policy must also contain a loss payable clause endorsement naming North Alabama Educators Credit Union as lienholder of the collateral.

Proof of proper insurance coverage needs to be forwarded to the credit union for new loans or changes in your insurance company. Proof of insurance be received within 14 days of a new loan or a policy termination notice. If we do not receive proof of insurance in the time frame allowed, a policy protecting the credit union will be ordered with the cost of that premium being added to the outstanding loan balance. The loan payment amount would also be increased to maintain the original amortization schedule of the loan.

Forced placed collateral protection coverage is NOT traditional insurance. It provides no coverage for other vehicles involved in an accident. It does not provide coverage for the full value of a vehicle. It only provides coverage for the outstanding balance of the loan. If your loan balance was $5,000 and your $14,000 valued vehicle was totalled, only $5,000 would be paid on a claim. Forced placed collateral protection coverage is expensive because it is forced placed.

We do not want to have to add forced placed collateral protection but we must have the collateral loans protected. Members should be able to obtain traditional insurance coverage for far less cost. There are "high risk" insurance agents that can provide traditional insurance in most cases.

If you receive a notice from the credit union requesting proof of insurance, please take it seriously and provide the proof of insurance. Members can call the insurance tracking center directly at 1-866-260-6097 or update their insurance status at www.myloaninsurance.com . Proof of insurance can also be faxed directly to 1-817-276-7860.

Record Month for Loans

Who said that there was a "credit crunch" going on? North Alabama Educators Credit Union just realized a record month in new loans during the month of May. The credit union disbursed over $2.9 Million in new loans during May. The bulk of these new loans were for new and used automobiles. That is good for our members and the local economy. Our loan rates are very affordable and competitive in the market. Lower loan rates translate to more money in the member's pocket at the end of the month.


I appreciate the members choosing North Alabama Educators Credit Union for their lending needs. Our lending staff should also be commended for their efforts in producing this record loan volume. The credit union stands ready to meet the lending needs of our membership in the coming months and years.