TENNESSEE CREDIT UNION LEAGUE PARTNERS WITH FLOYD & ASSOCIATES FOR OVERDRAFT PRIVILEGE PROGRAM

CU Services, Inc., a wholly-owned subsidiary of the Tennessee Credit Union League (TCUL), has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Houston, naming the profitability-consulting firm its "Preferred Business Partner" for JMFAS OVERDRAFT PRIVILEGE(SM) program. The program helps members avoid negative consequences of bounced share drafts (checks), and helps credit unions improve noninterest income. The TCUL represents 197 affiliated credit unions, or 93% of those in the state. TCUL affiliates serve 1.5 million members with assets of approximately $9 billion.

Program helps members avoid negative consequences of bounced share drafts (PRWEB) October 14, 2003

CHATANOOGA, TN- HOUSTON (PRWEB)Oct. 14, 2003-– CU Services, Inc., a wholly-owned subsidiary of the Tennessee Credit Union League (TCUL), has signed an agreement with John M. Floyd & Associates, Inc. (JMFA) of Houston, naming the profitability-consulting firm its "Preferred Business Partner" for JMFAS OVERDRAFT PRIVILEGE(SM) program.

         The TCUL, founded in 1934, is a statewide, full service, financial trade association representing 197 affiliated credit unions, or 93% of those in the state. TCUL affiliates serve 1.5 million members with assets of approximately $9 billion.

   Credit union leagues in Alabama, Florida, Michigan, Mississippi, New Jersey, New Mexico, Texas and Vermont, as well as the Credit Union League of the West (CA, NV, WA, OR) and CUNA Strategic Services, Inc.., also have teamed this year with JMFA for its product (www.overdraftprivilege.org).

     The public is demanding value-added services like overdraft privilege," CEO John M. Floyd has told both the Consumer Advisory Council to the Federal Reserve System and the Business Law Section of the American Bar Association. This discreet service avoids the humiliation of members ‘making good on a check with a valued retailer. Neither the customer nor the merchant loses time or productivity in straightening out an NSF (nonsufficient funds) mess," Floyd says. Members dont wind up on retailers bad check lists.

     Tennessee credit union members can avoid multiple NSF charges from a merchant, or larger late payment penalties on house notes, car loans and tuition payments. They also can prevent negative entries on their credit record or potential visits from law enforcement for inadvertent -- but repeat -- bad checks or share drafts," he added.
Diligent Search…Member Friendly Program

     With overdraft privilege, credit unions have a significant opportunity to enhance member satisfaction while increasing fee income, which has become progressively more important in the current economy as income from lending has fallen," noted League President Tom
Gaines.

     The TCUL diligently researched and compared suppliers and their programs before partnering with John M. Floyd & Associates," said Geraldine Cardwell, Vice President of CU Services and CFO for TCUL and the subsidiary.

     Our goal was to identify an outstanding partner that would combine all the benefits of an overdraft program with the credit union philosophy of focusing on the members well being. I am convinced that our partnership with Floyd & Associates will help credit unions implement a member-friendly program," Cardwell added.

Overdraft Programs Vary Widely
     JMFA, founded in 1973, is a leading provider of noninterest income products to financial institutions. The company has installed profit improvement programs in 1600-plus financial institutions, adding more than $5 billion in increased pre-tax earnings for its clients. The company also has successfully implemented variations of its overdraft privilege program in more than 400 credit unions, banks and thrifts.

     JMFAs overdraft privilege program (www.overdraftprivilege.org) is nondiscriminatory and 100% compliant with federal and state regulations, as well as with recently suggested changes," Floyd emphasized. Our program has a proven track record of producing more income and less charge-offs."

     The Federal Reserve System, at the urging of consumer advocate groups, including the National Consumer Law Center, has been reviewing compliance issues concerning bounce protection" and similar overdraft programs. Some critics contend the programs need stricter controls under the Truth in Lending Act, however, the Fed decided March 28 to make no regulatory changes at this time, but to continue gathering information on the programs.

     Floyd has been speaking from coast to coast this year emphasizing the multiple benefits of overdraft programs, as well as the unfair practices endemic to the implementation, marketing and management of some overdraft programs. Some bounce or overdraft protection programs are discriminatory, over-promote the service, under-educate consumers on its use and base overdraft limits on a mystery matrix," he has advised consumers, regulators and bankers.

     Brian R. Witt, chairman of the Credit Union Committee of the American Bar Association, agreeing with Floyds premise, stated in the May issue of Credit Union Magazine: The hidden, unquantifiable costs of not covering overdrafts could be more insidious than the overdraft fees now imposed under current disclosure laws."

     JMFA creates strategic programs, including PRIVILEGE MANAGER CRM(TM), specific to each credit union, its organization and its market that maximizes all aspects of NSF revenue. It then delivers expert training, marketing and software to assure successful implementation and full regulatory compliance.

About the League:
The Tennessee Credit Union League is a statewide trade association representing its members in legislative and regulatory arenas and providing information, professional education and other membership services to credit union volunteers, management and staff. Its objective is to help credit unions become the premier providers of consumer financial services. For more information, visit the TCUL Web site at www.tennleague.com.

JMFAS OVERDRAFT PRIVILEGE(SM) and PRIVILEGE MANAGER CRM (TM) are service marks of John M. Floyd & Associates, Inc. PRIVILEGE MANAGER CRMÔ is patent pending.

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FOR MORE INFORMATION OR INTERVIEWS:
John M. Floyd, CEO, John M. Floyd & Associates, Houston, 800-409-8670 or 281-424-3800;
Web site, www.overdraftprivilege.org; e-mail, John.Floyd@jmfa.com

Preston F. Kirk, APR, Kirk Public Relations, Austin TX, 830-693-4447; kirk@281.com

Geraldine Cardwell, Vice President & CFO , CU Services, Inc., CFO, Tennessee Credit Union League, Chattanooga, (423) 899-2425 x117 gcardwell@yourleague.org