NWCU News

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noreply@blogger.com (North Winnipeg Credit Union) — Wed, 24 Mar 2010 16:27:00 +0000

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Use caution when selling online

noreply@blogger.com (North Winnipeg Credit Union) — Wed, 03 Feb 2010 20:56:00 +0000

Due to the popularity of online sites such as eBay and Kijiji, more and more people are looking to the Internet when they want to sell things. And while selling online can be a terrific resource for entrepreneurs and even those just looking to get rid of a few used items, members should be aware of a scam that has been quite prevalent in recent months.
The scam typically begins with the fraudster agreeing to purchase the seller’s item over the Internet. The scam artist then sends the victim a cheque for more than the agreed upon purchase price, and asks that the seller to cash the cheque and return the excess. If the victim does deposit the cheque and return the excess funds, a few days later the original cheque will bounce and the victim will be out the difference — and possibly the item itself.
The best advice is to wait until the cheque has cleared before sending anything to the purchaser — merchandise or otherwise —and to keep in mind that if the cheque you receive is for too much, that’s probably a red flag that you’re being targeted by a scammer.

Card skimmers' prey shocked

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 26 Oct 2009 16:41:00 +0000

• Operation victimizes hundreds in the city
• Police expect investigation to take months

By: Aldo Santin and Geoff Kirbyson
Winnipeg Free Press
October 22, 2009

Matthew Rietze has lost his trust in Canada's banking system.

The Winnipeg man went to buy lunch on Wednesday but, after he swiped his debit card, instead of receiving an "approved" message, the card reader denied the transaction and instructed him to contact his branch.

When he visited his Royal Bank location, he was informed somebody in Edmonton had withdrawn $800 from his account Tuesday evening. Whoever it was attempted a second withdrawal Wednesday afternoon but failed because Rietze's card had since been deactivated.

"I feel very violated. It has consumed me ever since I got back to my office from the bank. I know the bank will straighten it out but it's destroyed my trust to have my money in the bank. It's very disheartening," he said, noting he has been told it could take one to 10 business days to reimburse his account.

It turns out Rietze is one of hundreds of Winnipeggers to be victimized by a card-skimming operation currently under investigation by the Winnipeg Police Service.

Reagan Saunders said she learned Tuesday that money was removed from her account during two separate ATM transactions in Montreal on Monday.

"I went to Tim Hortons (Tuesday) but my purchase was denied," Saunders said, adding when she contacted the Royal Bank they told her that individuals using a fake debit card removed almost $1,000 from her account on Monday.

"They asked me a lot of security questions and I assured them I had not been on Montreal," Saunders said. "They told me the money was taken out of a bank machine in two separate occasions by someone using a debit card that appeared to belong to me."

Tracy, who didn't want her last name used, had nearly $1,000 withdrawn this week from her chequing account at Crosstown Civic Credit Union. She said even though the charges have already been reversed, she's rethinking how and where she'll use her debit card in the future.

"I felt a bit violated. It's a really distant kind of theft. It's not like somebody robbed me on the street but they got into my private account. It made me think about safety a lot more," she said.

Police said that a preliminary investigation has found that debit-card machine pin pads at several businesses have been compromised, with the information used in fraudulent purchases in eastern Canada.

Police said the investigation is expected to take several months and financial institutions in the city are co-operating.

Peter Enns, CEO of Crosstown Civic, said clients could fall into one of two categories. Either they had money withdrawn from their account due to card-skimming or Crosstown Civic's systems showed they used their card at a retailer where skimming was found to have occurred, regardless of whether their account was compromised. In the latter case, clients were asked to come into a branch to be issued a new card.

Enns said the debit cards in question have a magnetic stripe on the back as Crosstown Civic hasn't yet moved to chip debit cards, which are supposed to be infinitely more secure than outdated "mag stripe" technology. Chip debit cards are in the process of being sent out by a number of financial institutions.

Saunders said Royal Bank refunded the entire stolen amount back into her account by Tuesday afternoon and advised her to get a new debit card.

Saunders said the bank would not say how many other Winnipeggers it knew had been victimized, but added she was told she could expect to be contacted by police.

Police are advising that anyone who believes that their debit-card information has been used in a fraudulent purchase should contact their financial institution.

Keep Member Card safety tips in mind when shopping

noreply@blogger.com (North Winnipeg Credit Union) — Thu, 06 Aug 2009 16:38:00 +0000

As the holidays approach, many members will soon be using their Member Cards to make purchases at a wide variety of places. The convenience and ease of use of debit cards is one of the reasons they’re so popular. In fact, the Interac Association reports that during the busiest shopping days of the year, it’s not unheard of for Manitobans to make well over half a million debit transactions in a single day.

But with all those transactions taking place, the association encourages members to keep debit card safety in mind when using your Member Card.

While the Interac network is among the safest networks in the world, debit card fraud can occur if proper precautions aren’t taken. The credit union would like to suggest the following tips to keep your Member Card safe when shopping:

1) Use your hand or body to shield your PIN during every transaction;

2) Keep your debit card in sight when conducting transactions at the checkout;

3) Check you banking statements regularly and contact the credit union immediately if you detect any unusual activity;

4) Notify the credit union immediately if your Member Card is lost, stolen or retained by an ATM;

5) Avoid telling anyone else your PIN, including friends and family. Only you should know it; and

6) Use a unique PIN that can’t be easily guessed. Avoid numbers like your date of birth, telephone number or social insurance number.

Phishing scammers posing as the tax man

noreply@blogger.com (North Winnipeg Credit Union) — Thu, 06 Aug 2009 16:30:00 +0000

It’s unfortunately quite common these days to receive e-mails purportedly from legitimate financial institutions requesting personal information for fraudulent purposes. These scams, typically referred to as “phishing” scams, use phony e-mails and websites to lure unsuspecting victims into handing over critical personal information, such as social insurance numbers, credit card information, bank account details and passport numbers.
Members should keep in mind that the credit union — and any legitimate financial institution — will never request personal information by e-mail. If you receive a questionable e-mail, the best advice is always to contact the institution directly to inquire about the validity of the request.
However, members may not be aware of a similar phishing scam currently making the rounds which involves fraudulent communications purportedly from the Canada Revenue Agency (CRA). As with other instances of phishing, the phony e-mail requests personal information. In this case, however, the request is made so that the taxpayer can supposedly receive a refund or benefit payment.
The CRA has advised that taxpayers should not respond to these fraudulent communications. The agency says it will not request personal information of any kind from a taxpayer by e-mail and that it will not divulge taxpayer information to another person unless formal authorization is provided by the taxpayer. The CRA also says it will not leave personal information on an answering machine.
If you have concerns about an e-mail you’ve received, you’re encouraged to visit the CRA website at http://www.cra-arc.gc.ca.

Rising bankruptcy levels underscore need for good money management

noreply@blogger.com (North Winnipeg Credit Union) — Thu, 06 Aug 2009 16:28:00 +0000

Recent studies on the level of consumer bankruptcies in Canada have underscored the importance of good savings habits, avoiding unnecessary debt and overall sound money management.
Data released earlier this year by Equifax Canada revealed that Canadians across the country are filing for bankruptcy in increasing numbers. The study found that consumer bankruptcies in November 2008 increased nine per cent over the same period a year earlier. Meanwhile, a subsequent report released by BMO Capital Markets said that consumer bankruptcies in May 2009 were 33.3 per cent higher than a year earlier. The BMO report noted that consumer bankruptcies have been increasing since the end of 2005.
Bankruptcy is something no one wants to face. It carries with it a significant financial cost and also puts undue strain on relationships and families. Unfortunately, with a weakened economy and high personal debt levels, many Canadians find themselves in exactly that situation.
The key to avoiding bankruptcy is a proper understanding of what you’re getting into before signing on for more debt, as well as establishing consistent, reliable savings habits.
If you’re concerned about the level or type of debt you’ve assumed, or if you need advice on products that might make saving easier, stop by or call the credit union and speak to a member service representative. We have many products and services that may be quite useful to you, and we’d be happy to help.

Province’s credit unions maintain growth, service levels despite current climate

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 04 May 2009 16:12:00 +0000

Despite a downturn in the global economy that adversely affected many financial institutions around the world in 2008, Manitoba’s credit unions continue to grow and succeed, thanks to an ongoing commitment to exceptional member service and competitive rates.
Last year marked the ninth straight year of double-digit growth for the credit union system, with total assets increasing by 11.9 per cent to hit $14.4 billion by the end of the year. Meanwhile, the system’s combined loan portfolio grew by 14.7 per cent in 2008 (to $12.1 billion), while total deposits increased by 11.5 per cent to $13.4 billion.
Overall, credit union market share in Manitoba, at nearly 41 per cent, has never been higher. This is particularly true with small- and medium-sized businesses, with 51 per cent of owners belonging to a credit union and 94 per cent of those business members listing a credit union as their primary financial institution.
The continued growth of credit unions in difficult economic times is a tribute to the loyalty of credit union members. In turn, Manitoba credit unions repaid that loyalty by contributing over $3 million to a variety of community based groups, initiatives and charitable organizations in 2008, as well as by awarding $125,000 in scholarships to Manitoba students.
The strength of the provincial credit union system, which employs 3,300 Manitobans, remains a bright spot in today’s difficult economy.

Credit union success not limited to Manitoba

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 04 May 2009 16:11:00 +0000

The success of the credit union system isn’t limited to Manitoba. Across Canada, credit unions continue to thrive and attract new members.
According to Credit Union Central of Canada (CUCC), the national credit union system’s assets, savings/deposits and loans all recorded solid gains in 2008. Assets rose 8.7 per cent to reach $113.8 billion; over the past five years, the increase in assets was 45 per cent. Deposits and savings increased to $100.6 billion in the fourth quarter of 2008, and loans grew 7.2 per cent over year end 2007. Four of the 10 provincial credit union systems — including Manitoba — reported double-digit growth in each of the three main financial categories: assets, savings/deposits and loans.
The national system now includes 444 credit unions with more than 1,700 branches across the country. There are more than 5 million credit union members in Canada. The system also employs 24,000 Canadians.

Service, accessibility remain a constant for Manitoba credit unions

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 04 May 2009 16:07:00 +0000

While the Manitoba credit union system is always evolving, members may have noticed that the pace of change has accelerated in recent years. Indeed, thanks to a spate of credit union amalgamations in Manitoba over the past decade, the total number of credit unions in the province has decreased from 67 in 1999 to 48 today.
But what’s important for members to understand is that while the sheer number of credit unions may have decreased, access to credit union branches and services has never been easier or more convenient. For instance, there are 182 credit union branches in the province today, up from 161 in 1999. Credit unions now have a physical presence in 118 Manitoba cities, towns and villages, and in 67 of those communities a credit union is the only financial institution in place to serve consumers, businesses and producers.
On top of that, Manitoba’s credit unions are continuously striving to offer more ways for members to use technology to access their credit union, either through the network of more than 200 ATMs around the province or through the convenience of Internet and telephone banking.
That’s because Manitoba’s credit unions are committed to the Co-operative Principles and to meeting the needs of their members, both today and into the future.

Pay for it with your Credit Union MasterCard, pay it forward with your Choice Rewards points

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 04 May 2009 16:05:00 +0000

If you have a Credit Union MasterCard, chances are you’ve already heard of the Choice Rewards program, which allows you to collect points every time you use your Choice Rewards MasterCard for purchases.
The points you receive can then be redeemed for merchandise and travel rewards. Those features alone make the Choice Rewards program enticing, but did you know you can also redeem your Choice Rewards points for donations to two national charitable organizations?
By calling the Customer Contact Centre at 1-888-546-5487, you can use your points to make a charitable donation to either the Canadian Cancer Society or the United Way of Canada. A minimum donation of 2,500 points (the equivalent of a $25 donation) is required. Tax receipts will be issued by the charitable organization and will be sent to you directly on a bi-annual basis.
The Canadian Cancer Society is a national, community-based organization of volunteers, whose mission is the eradication of cancer and the enhancement of the quality of life of people living with cancer.
The United Way of Canada provides guidance and support to Canada’s 119 United Ways, which work locally to change living conditions for the better.
For more information on the Choice Rewards program and its charitable donations component, visit www.choicerewards.ca.

Operator card worth considering for boaters

noreply@blogger.com (North Winnipeg Credit Union) — Mon, 04 May 2009 16:04:00 +0000

For many Manitobans, summer means spending time at some of Manitoba’s plentiful beaches and lakes. If you’re planning to get away to cottage country this summer and you think you might be operating a boat, you may want to consider obtaining a Pleasure Craft Operator Card (PCOC).
While not required this summer, Transport Canada has stated that as of September 15, 2009, all operators of pleasure craft fitted with a motor and used for recreational purposes will be required to comply with the Competency of Operators of Pleasure Craft Regulations, which entails possession of an operator card.
To obtain an operator card, you need to pass an accredited test. Transport Canada doesn’t offer boating safety courses or testing, but its website does include information on accredited course providers in most areas. You are not required to take a course before writing the test, but it is recommended. The courses generally cover a range of basic boating information, including safety equipment requirements, explanations of the buoy system, reviews of all pertinent regulations and how to respond in an emergency situation.
Once obtained, the operator card is good for life.
For more information, visit Transport Canada’s website at www.tc.gc.ca/marinesafety.

March is Fraud Prevention Month

noreply@blogger.com (North Winnipeg Credit Union) — Thu, 26 Mar 2009 15:15:00 +0000

Credit Union Central of Canada is working with the Fraud Prevention Forum to raise awareness among consumers and businesses about the dangers of fraud by educating them on how to recognize it, report it and stop it.
More than 100 organizations are members of the Forum, which is chaired by the Competition Bureau. March is Fraud Protection Month and members have events planned to raise awareness of actions that people can take to prevent fraud.
Competition Bureau experts say that when there is a downturn in the economy, there is often an increase in fraudulent activity. It is warning people to be alert to deceptive notices about winning a lottery prize and false business directory listings.

Interac Association is reminding people to protect their PIN and keep their money safe.

Here are key safety tips for debit card holders:

1. Use your hand or body to shield your PIN during every transaction
conducted at an Automated Teller Machine (ATM) or at the checkout;

2. Keep your debit card in sight when conducting transactions at the
checkout;

3. Check your banking statements regularly and contact your financial
institution immediately if you detect any unusual activity, for
example purchases you did not make or missing charges;

4. Notify your financial institution immediately, if your debit card is
lost, stolen or retained by an ATM;

5. Memorize your PIN - only you should know it. If you suspect that
someone knows your PIN, even a friend or family member, change it
immediately;

6. Select a unique PIN. Never use obvious information, such as your
telephone number, date of birth, address or Social Insurance Number.
These numbers are often stored in the same place as your debit card
enabling criminals to easily guess your PIN.

For more information visit http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/h_00122.html

Courtesy of Credit Union Central of Canada.

Co-operative centennial reason to celebrate

noreply@blogger.com (North Winnipeg Credit Union) — Tue, 17 Feb 2009 16:14:00 +0000

Along with access to highly competitive products and services, one of the benefits of being a credit union member is the say you have in the direction of the credit union. That’s because every credit union member is entitled to vote at the organization’s annual general meeting as part of the principle of Democratic Member Control, one of the Seven International Co-operative Principles.
Democratic member control is one of the reasons members can be assured that their credit union will work in the best interests of them and their community. It’s also one of the reasons why countless Canadians will celebrate the 100th anniversary of Canada’s co-operative movement in 2009.
The first national co-operative association, the Co-operative Union of Canada (CUC), was formed in Hamilton, Ontario on March 6, 1909. The organization was one of the forerunners of the modern Canadian Co-operative Association (CCA).
Today, there are roughly 8,800 co-operatives and credit unions across the country. Together they have more than 17 million memberships, over $275 billion in assets and employ more than 150,000 people.
Co-operatives of all shapes and sizes have helped members through good times and bad over the course of the past 100 years, and are stronger than ever as they move into the next 100.
Certainly, good reason to celebrate.

Tax credit may drive additional home renovations

noreply@blogger.com (North Winnipeg Credit Union) — Tue, 17 Feb 2009 16:09:00 +0000

January’s federal budget introduced a temporary Home Renovation Tax Credit of 15 per cent (up to a maximum of $1,350) for eligible home renovations and alterations, including things like renovating a kitchen, building a deck, installing a new furnace or purchasing new windows.
The federal government explained that the purpose of the tax credit is to provide a temporary incentive for Canadians to undertake new renovation projects or accelerate planned future projects, with the overall goal of stimulating the Canadian economy and boosting the energy efficiency of Canada’s homes.
For homeowners who were already considering renovations, it would seem to make sense to take advantage of the 2009 tax credit. However, an increase in renovations will also mean an increased demand for contractors, which may lead to opportunists taking advantage of eager homeowners.
The Better Business Bureau (BBB) of Manitoba and Northwestern Ontario advises that home repair rip-offs are among the most common types of scams. The BBB warns that the contracting industry is “plagued with fly-by-night scam artists that show up on your doorstep offering to do house and yard work for exorbitant fees.”
According to the Bureau, home repair rip-off artists typically request that you pay fees up front before the work is completed, refuse to provide a written receipt and complete work poorly. Homeowners are advised to watch out for companies that knock on your door offering to do work, regularly over bill or that charge for services you have not requested.
The BBB suggests getting estimates from a minimum of three contractors who have permanent addresses in your area.

Security Tips: Other steps to protect your identity

noreply@blogger.com (North Winnipeg Credit Union) — Tue, 17 Feb 2009 16:05:00 +0000

* Be suspicious of transactions you didn’t initiate
* Question the need to provide your Social Security number
* Reconcile all credit purchases with your monthly statement
* Review your credit statements, and close accounts you don’t use
* Get annual reports of your credit status from Equifax or TransUnion
* Photocopy the contents of your wallet and keep this information in a safe place
* Immediately sign all new credit cards
* Your mailbox is an invitation to thieves. Get a locking box, or retrieve your mail right after delivery
* Shred anything that contains your personal information
* When purchasing goods online, ensure the URL starts with “https://” (the “s” is for secure), and beware of using pop-up forms

Members advised to be wary of telephone scam

noreply@blogger.com (North Winnipeg Credit Union) — Tue, 17 Feb 2009 16:00:00 +0000

A familiar telephone scam involving VISA and MasterCard credit cards has been occurring in increasing frequency in recent months and, as such, members are being advised to be vigilant with respect to confidential personal information.
In this scam, victims typically receive a phone call from a caller who identifies himself as an investigator with the fraud department of VISA or MasterCard. The caller states that the victim’s account has been flagged for unusual activity and then asks if the victim has recently made a purchase in a distant region for a specified amount.
When the victim replies that they have not, the caller states that VISA/MasterCard will credit the amount of the fraudulent purchase to the victim’s account and then asks for verification of the credit card number and the three-digit code on the back of the card. The caller may also ask for other confidential information, stating that the information is needed to credit the amount to the account.
Once the victim gives the caller the information, the caller assures them the money will be credited to their account and ends the call. The scam artist then uses the information to go on a spending spree with the victim’s credit card.
If you receive an unsolicited call from an individual claiming to be a representative of VISA or MasterCard, do not give them any personal information. Instead, call the credit card company directly and ask to speak to a representative.

Bank of Canada cuts lending rate to record low of 1%

noreply@blogger.com (North Winnipeg Credit Union) — Tue, 20 Jan 2009 16:28:00 +0000

Last Updated: Tuesday, January 20, 2009 | 10:11 AM ET
CBC News

The Bank of Canada on Tuesday cut borrowing costs to a record low as it warned the economy will shrink this year.

In a further move to bolster the sagging economy, the bank reduced its key overnight rate by half a percentage point to one per cent. The bank has now trimmed 3.5 percentage points from the overnight rate since it started its latest cycle of cuts.

Tuesday's cut reduced borrowing costs below 1.12 per cent, which had been the lowest point set back in 1958.

More rate reductions may also be in the offing, as the Bank of Canada said more stimulus could be needed to boost the sagging economy.

"Major advanced economies, including Canada's, are now in recession and emerging-market economies are increasingly affected," the bank said.

"Canadian exports are down sharply, and domestic demand is shrinking as a result of declines in real income, household wealth, and consumer and business confidence."
Bank sees recovery in 2010

The Canadian economy is expected to contract by 1.2 per cent in 2009, but the bank sees a recovery in 2010, when the economy is projected to expand by 3.8 per cent.

Back in October, the bank projected growth of 0.6 per cent in 2009, and 3.4 per cent in 2010.

The bank will provide more details on its outlook for the economy on Thursday, when it releases its Monetary Policy Update.

The bank also signalled that inflation fears have abated. The so-called core inflation rate is expected to fall to 1.1 per cent in the fourth quarter of this year, while the overall inflation rate is expected to dip below zero for two quarters in 2009 because of lower energy prices.

"With inflation expectations well-anchored, total and core inflation should return to the two per cent target in the first half of 2011 as the economy returns to potential," the bank said.

The major Canadian banks quickly moved to reduce their prime rates to three per cent. That differed from some of the past moves by the Bank Canada, when the big banks either delayed lowering their prime rates or did not pass along the full cut. The banks cited the tight credit markets as the reason why they were not passing along the cuts to customer borrowing rates.

View online.

Expect 'significant deficits' in short term: Harper

noreply@blogger.com (North Winnipeg Credit Union) — Fri, 16 Jan 2009 22:20:00 +0000

Friday, January 16, 2009
The Canadian Press

Prime Minister Stephen Harper says the federal and provincial governments are looking at "very significant deficits in the short term."

Harper emerged from a day-long pre-budget meeting with provincial premiers in Ottawa to say the first ministers are in broad agreement on immediate measures to help the economy.

He said they were all in agreement that collaborative efforts are required because "we are in a very dangerous time for the world's economy."

The prime minister did not announce any specific funding commitments. The multibillion-dollar price tag will be disclosed in the Jan. 27 federal budget.

However, federal officials have signalled that the government is poised to run a deficit of up to $40 billion, most of it as a direct result of economic stimulus measures.

Labour mobility deal signed

Earlier Friday, Canada's first ministers finalized a labour mobility deal that will allow skilled Canadians to work in other provinces without having to recertify.

Premiers and territorial leaders, along with Harper, signed the amendment to the Agreement on Internal Trade during their pre-budget talks in Ottawa.

In short, the change means skilled workers such as nurses, plumbers or welders who have valid certification in one province can work in another part of the country without having to be reaccredited.

The revision "will provide that any worker certified for an occupation by a regulatory authority of one province or territory is to be recognized as qualified for that occupation by all other provinces and territories," said a news release from the first ministers.

The ministers are meeting in a bid to reach agreement on a massive economic stimulus package the federal government plans as the centre of its budget. It could include infrastructure spending, changes to the employment insurance program, money for job retraining and aid for struggling industries.

Satisfying the premiers is a crucial step in ensuring a favourable reaction to the budget, on which the fate of Harper's minority government rests.

Opposition leaders have said they are prepared to vote down the government and seek permission to form a coalition government if the budget is not in the best interests of Canadians.

Harper on Thursday told the National Post that middle-income Canadians can expect tax cuts, an idea dismissed by Newfoundland and Labrador Premier Danny Williams on Friday.

Williams said in the face of massive job losses, it's more important to improve the EI system in order to support the unemployed.

"Marginal tax cuts for people who have jobs will not have as big an impact as significant support for workers who have lost their jobs," said Williams.
Mayors meet with Baird

On Thursday, mayors from Canada's largest 22 cities met with Transport Minister John Baird, whom Harper placed in charge of federal infrastructure spending.

They issued a list of more than 1,000 infrastructure projects that could be launched shortly after the budget is issued, but said the money must flow immediately after the budget is passed.

"We don't want the recession to be over by the time we get infrastructure dollars spent," Ontario Premier Dalton McGuinty said Thursday afternoon.

The mayors also joked that they are willing to hang hundreds of posters around the country giving credit to federal and municipal governments for infrastructure spending.

Carl Zehr, the mayor of Kitchener, Ont., and the chair of the big city mayors caucus in the Federation of Canadian Municipalities, said the issue of taking political credit was raised during Thursday's meeting with Baird.

"If the federal government in providing these additional funds as a stimulus would like to make sure it gets credit for that, we're more than prepared to do that and put up hundreds — thousands! — of signs indicating where the money came from," Zehr said at a news conference.

A chorus of mayors around Zehr laughingly corrected him — "hundreds" — while alluding to the cost of such a communications campaign.

Auto bailout greeted with optimism in Canada

noreply@blogger.com (North Winnipeg Credit Union) — Fri, 19 Dec 2008 20:00:00 +0000

Friday, December 19, 2008 | CBC News | http://www.cbc.ca/canada/story/2008/12/19/bailoutreax.html

The mayors of Oshawa and Windsor — two Ontario cities heavily reliant on the auto sector — welcomed Friday's announcement of U.S. support for the troubled Detroit Big Three.

Oshawa Mayor John Gray said the bailout should help to lift some of the uncertainty the Big Three are facing by getting them to a March 31 deadline to ensure their viability.

"We can, at least, get these companies through the hurdle," Gray said.

"Hopefully by then, some of the credit will start to ease up so that buyers buy vehicles," he said.

U.S. President George W. Bush announced Friday morning that the U.S. government is dipping into the massive financial bailout package to offer $17.4 billion US in short-term loans to automakers.

Canada and Ontario could be on the hook for roughly $4 billion in aid to the automakers here based on their pledge to provide 20 per cent of whatever the U.S. government offered.

Windsor Mayor Eddie Francis said that announcement is a strong signal that the U.S. realizes how important the Big Three are to its national economy. Now, he's waiting to hear what kind of support Canadian political leaders will offer.

"There are thousands of jobs spread out through Ontario in various communities that are dependent on Chrysler," Francis said.
'Vested interest'

"Obviously, the city of Windsor has a vested interest with Chrysler, as does Brampton, as do other jurisdictions. You hope that the provincial government will recognize that importance. I am confident that they will."

Prime Minister Stephen Harper, federal Industry Minister Tony Clement and Ontario Premier Dalton McGuinty were not commenting Friday, with Harper and McGuinty slated to comment at 10:30 a.m. ET in Toronto.

An aide to Harper called the announcement "good news," as did a spokesman for Ontario Economic Development Minister Michael Bryant.

Automotive analyst Dennis DesRosiers said the automakers will have to renegotiate contracts with their workers, suppliers and debt-holders.

"Major, major work needs to be redone," he said.

"And, at the end of the day, when [the car companies] do come up with that [restructuring] plan, there probably is a need for quite a bit more government money in North America."

Bush offers $17.4B to automakers

noreply@blogger.com (North Winnipeg Credit Union) — Fri, 19 Dec 2008 19:50:00 +0000

Ford tells White House it doesn't need bailout loan

December 19, 2008 | CBC News | http://www.cbc.ca/world/story/2008/12/19/auto-bailout.html

Calling it the "more responsible option," U.S. President George W. Bush on Friday dipped into the massive financial bailout package to offer $17.4 billion US in short-term loans to automakers.

"If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers," he said during a news conference at the White House.

"Under ordinary circumstances, I would say this is the price that failed companies must pay. These are not ordinary circumstances."

U.S. stocks rose in trading on Friday after the president's announcement.

U.S. president-elect Barack Obama praised the announcement.

"Today's actions are a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and workers," he said.

"With the short-term assistance provided by this package, the auto companies must bring all their stakeholders together — including labour, dealers, creditors and suppliers — to make the hard choices necessary to achieve long-term viability."
TARP loans

The loans will come from the $700-billion financial market rescue package approved by Congress in October, the Troubled Asset Relief Program (TARP).

The loans will be handed out in December and January, but will be recalled if the companies are not viable by March 31, 2009.

GM CEO Rick Wagoner told reporters in Detroit that he doesn't think the March deadline is impossible.

"What we need to do is show we can get that stuff done on the required timeframe, and then on the basis of that we will develop future projections for the company, and I'm highly confident we'll be able to meet that test," he said.

The plan requires firms to accept limits on executive compensation and eliminate certain corporate perks, such as company jets.

"The automakers and its unions must understand what is at stake and make hard decisions necessary to reform," Bush said.

White House officials said Ford has told them it doesn't need the loan, so the money will likely go to General Motors and Chrysler.

Chrysler CEO Bob Nardelli thanked the Bush administration for the help, saying it would get the companies through their immediate needs and on the path back to profitability.

Ford CEO Alan Mulally said the bailout will help stabilize the industry, even though his company doesn't immediately need cash.

"The U.S. auto industry is highly interdependent, and a failure of one of our competitors would have a ripple effect that could jeopardize millions of jobs and further damage the already weakened U.S. economy," Mulally said.

Treasury Secretary Henry Paulson said Congress should authorize the use of the second $350 billion from TARP. Tapping the fund for the auto industry basically exhausts the first half of the $700-billion total, he said.
Collapse would be 'painful blow'

Bankruptcy was unlikely to work for the auto industry at this time because the global financial crisis pushed the automakers to the brink of bankruptcy faster than they could have anticipated, Bush said.

"They have not made the legal and financial preparations necessary to carry out an orderly bankruptcy proceeding that could lead to a successful restructuring," he said.

Consumers, already wary of additional spending, will be more hesitant to buy a Big Three auto if they think their warranties will become worthless, said the president.

"Such a collapse would deal a painful blow to hardworking Americans far beyond the auto industry."

Bush said the "more responsible option" is to provide short-term loans to give the companies time to either restructure, or set up the legal and financial frameworks necessary to declare bankruptcy.

The Senate failed to pass a $14-billion US bailout package to the automakers last week.

Earlier this month, Ottawa and the government of Ontario reached a deal to offer money to Canada's auto industry based on a proportion of any package agreed to by U.S. officials.

Auto sales have dropped drastically, with carmakers reporting their lowest sales in 26 years.

With files from the Associated Press

Chip card market trial a success

noreply@blogger.com (North Winnipeg Credit Union) — Fri, 07 Nov 2008 16:02:00 +0000

October 28, 2008

Members of the payment card industry - Interac Association, MasterCard Canada, Inc., Visa Canada and many of their respective card issuers and payment processors - today released positive insight and observations from the industry trial of chip technology being conducted in Kitchener-Waterloo.

Chip technology is a new generation of payment cards which contain embedded microchips giving debit and credit cards the ability to securely store and process transaction information, making an already safe payment system even more secure.

"The chip trial allowed participants to assess customer and merchant communications and monitor awareness and adoption of chip technology," said Tracey Black, program director, Kitchener-Waterloo Industry Chip Trial. "Each organization will take away learnings from the trial to support their chip implementation plans across Canada."

For the full news release from the chip group click here.

Interac Association has announced the start of its national rollout of chip cards. For its news release click here.

Courtesy of Credit Union Central of Canada.

Credit unions continue to lead in customer service

noreply@blogger.com (North Winnipeg Credit Union) — Fri, 07 Nov 2008 15:59:00 +0000

Independent survey shows credit unions beat banks in many categories

September 2, 2008

TORONTO – For the fourth year in a row, an independent survey of thousands of Canadians has shown that credit unions rank first in overall quality of customer service among all financial institutions.

“Synovate’s research has shown that Canadians like dealing with organizations that reflect their values,” said David Phillips, president and CEO of Credit Union Central of Canada. “The co-operative principles that credit unions adhere to lead us to focus on meeting peoples’ needs and serving the communities where we live.

“Credit unions have more than five million members across the country and do an excellent job of providing the service people want,” Phillips said. “We are pleased to win the Best Banking Awards, but not surprised.”

The 2008 Synovate Customer Service Index found credit unions ranked ahead of all banks and other financial institutions in the following categories:

• Overall Customer Service Excellence
• Values My Business
• Financial Planning and Advice
• Branch Service Excellence

Credit unions also tied for first in the following categories:

• Recommend to Friends and Family
• Telephone Banking Excellence

The Synovate Customer Service Index survey had more than 35,000 responses among a regionally and demographically representative sample of Canadians. The survey has been conducted annually since 1987.

The 452 credit unions affiliated with Canadian Central have assets of $106 billion and more than five million members. Credit unions are provincially regulated financial institutions owned by their member/customers that provide a full range of financial services.

Synovate, the market research arm of Aegis Group plc, generates consumer insights that drive competitive marketing solutions. The network provides clients with cohesive global support and a comprehensive suite of research solutions. Synovate employs more than 6,000 staff in 63 countries. For more information on Synovate visit www.synovate.com.

Courtesy of Credit Union Central of Canada.