A presentation on
Credit Union Response to the Gulf Oil Spill August 30, 2010 - Pen Air FCU
Credit Union Response to the Gulf Oil Spill Agenda • Welcome/Impact on Region • Guidelines/Risk Factors - NCUA, OFR, ACUA • Steps to File a Claim with Gulf Coast Claims Facility • Best Practices/Brainstorming Ideas on Ways to Help • Wrap up
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Welcome/Impact on Region Welcome/Introductions • Patrick La Pine – President/CEO of the LSCU
Impact on Gulf Region Snapshot of Oil Spill • Oil spill began April 20 • More than 120 million gallons leaked into the Gulf • It’s the world’s largest oil spill (3 times larger than Exxon Valdez) • According to an Oxford Economics Study, the Gulf region will lose $22 billion in tourism over the next three years
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Source: NY Times
Credit Unions in the Effected Region Alabama and Florida Credit Unions in the Region
Chapter
Credit Unions
Assets
Loans
Members Branches
AL-Mobile
22
$562M
$292M
94,186
45
FL-Northwest
16
$3.6B
$1.6B
331,594
77
FL- Gulf Coast
10
$1.5B
$953M
165,004
33
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Credit Unions in the Effected Region Louisiana Credit Unions in the Region
Chapter
Credit Unions
Assets
Loans
Members
Branches
Baton Rouge
50
$3.1B
$2B
403,108
131
East Orleans
15
$166M
$81M
33,514
18
Lafayette
26
$367M
$212M
60,561
31
Lake Charles
20
$510M
$308M
77,315
30
Tri-Parish
13
$180M
$101M
29,429
12
West Orleans
46
$1.6B
$920M
254,668
104
Credit Unions in the Effected Region Mississippi Credit Unions in the Region
Chapter
Credit Unions
Assets
Loans
Members
Branches
Gulf Coast
11
$2.4B
$1.5B
292,456
40
Hope Community CU
Based in Jackson but has a branch in Biloxi
$125M
$84M
24,108
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Credit Union Regulators Participants National Credit Union Administration • Tim Hornbrook, Associate Regional Director, Region III Florida Office of Financial Regulation • Linda Charity, Director, Division of Financial Institutions • Robert Hayes, Bureau Chief Alabama Credit Union Administration • Glenn Latham, Administrator Louisiana Office of Financial Institutions • Sid Seymour, Chief Examiner
Guidelines/Risk Factors
Tim Hornbrook – Associate Regional Director, Region III National Credit Union Administration
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Guidelines/Risk Factors
Linda Charity – Director, Division of Financial Institutions Florida Office of Financial Regulation
Guidelines/Risk Factors
Robert Hayes – Bureau Chief, Florida Office of Financial Regulation
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Guidelines/Risk Factors
Glenn Latham – Administrator, Alabama Credit Union Administration
Guidelines/Risk Factors
Sid Seymour – Chief Examiner Louisiana Office of Financial Institutions
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Open Discussion Questions for regulators on what credit unions can do?
Credit Union Response to the Gulf Oil Spill
Claims Paid Out and How to File a Claim
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Claims Paid Out Snapshot of Claims Paid Out as of August 23 • 154,000 total claims • $399 million paid out • $361 million paid out to AL, FL, LA and MS • $97 million paid out to Alabama • $81 million paid out to Florida • 127,000 checks written since May • 166,000 calls into the call center • 5-day average time for individuals to get claim payment • 7-day average time for businesses to get claim payment
How to File a Claim Filing with the Gulf Coast Claims Facility (GCCF) • The GCCF replaced the BP claims process. Individuals and businesses should not present claims to BP • Claims can filed through November 23, 2010 • www.gulfcoastclaimsfacility.com/ • Claim phone numbers - 800-916-4893 or 866-682-1758 • Six claims offices in AL and 13 in FL – 36 total offices • Website has an area to see claim check status • Whitney National Bank will cash claims checks up to $5,000 per day – 156 locations in AL, FL, LA and MS • The GCCF is administered by Ken Feinberg, a neutral fund administrator responsible for all decisions relating to the administration and processing of claims
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How to File a Claim Filing with the Gulf Coast Claims Facility (GCCF) • Claims can be filed over lost wages and profits, business interruption as well as personal injuries • The fund will issue emergency six-month payment checks within 48 hours for individuals and seven days for businesses, "after receipt of the claim form and sufficient supporting documentation" • Documentation or evidence of the damage or injury for each type of damages claimed are needed • If claim is for direct damages from the Spill, compensation for the amount of damages will be issued, costs or lost earnings or profits that are proven with acceptable documentation. If claim is for indirect economic damages, the GCCF will evaluate whether claim is compensable and the appropriate amount of compensation based on geographic proximity to the Spill, whether it is dependent on injured natural resources, and the nature of the business
Open Discussion What can credit unions do to assist members and small businesses who don’t know how to file a claim?
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Credit Union Response to the Gulf Oil Spill
Best Practices/Brainstorming Ideas
Credit Union Best Practices Navy Federal Credit Union • Janice Kilgore • Working with the Pensacola Chamber of Commerce to provide volunteers for beach cleanup • Overseeing outreach efforts within the credit union
• William Dagnall
• Outreach efforts to businesses • Named to the State of Florida Small Business Emergency Bridge Loan Program • Slated to distribute small loans to affected businesses
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Credit Union Best Practices Gulf Winds Federal Credit Union • Kurt Stenerson • Gulf Winds has committed $50,000 to the Gulf Winds Wildlife Relief Fund that will match 100% of donations • Members, business partners and the community have donated $43,979 which has been matched for a total of $87,958 • Gulf Winds Wildlife Relief Fund is supporting the Wildlife Sanctuary of Northwest Florida • Rehabilitation of affected birds and wildlife • Ensure that the shorebirds and wildlife in Northwest Florida are not forgotten during this crisis
Open Discussion What are some other ways credit unions can work together?
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Brainstorming Ideas on Member Outreach Here are some ideas we have for credit unions: – Implement check cashing procedures for non-members who receive claims checks (following regulatory guidelines) – Offer payday loan alternative program (following regulatory guidelines) • Information source: REAL Solutions Payday Loan Toolkit, published by the National Credit Union Foundation, available on www.lscu.coop
– Consider loan modifications, based on individual circumstances (following regulatory guidelines) – Offer micro-lending program – More member business lending – Organize staff volunteer opportunities in community – Host claims events at the credit union
Open Discussion Credit union ideas:
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Brainstorming Ideas What can your League be doing? – – – –
Sample programs? Model policies? Resource section on our websites? LSCU has Oil Spill Resource area at http://www.lscu.coop/CooperativeInitiatives/Gulf-Oil-Spill-Resources under Cooperative Initiatives tab – LSCU has a rotating banner directing credit unions to Oil Spill resource page
Open Discussion Ideas on ways Leagues can help:
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Credit Unions as a Resource • • • • •
Display the list of claim offices for members Have a sample claim form for members Provide a simple document with pertinent information Implement claims check cashing program Think outside of the box – many of the unbanked can become a member • This can be great PR for you and for credit unions
Credit Unions Response to the Gulf Oil Spill Wrap-up
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