PSCU Financial Services Works with LACE Financial To Adjust Method for First Quarter RatingsCredit Unions to Avoid Increase in Pre-Fund Requirements for VISA, MasterCard TransactionsSt. Petersburg, FL, April 27, 2009 – Acting on behalf of credit unions nationwide, PSCU Financial Services worked with LACE Financial to ensure that the first quarter 2009 ratings of individual credit unions will not be negatively impacted as a result of the write down of capital to replenish the NCUSIF. This means that most credit unions will be able to avoid an increase in pre-fund requirements to guarantee MasterCard and Visa transactions, which would normally be triggered by the credit unions’ decrease in capital. The NCUA Board’s actions to stabilize the corporate credit union system will negatively impact the earnings of most of the individual credit unions that took the write down in the first quarter of 2009. LACE Financial has decided to take this one-time income impact into consideration. Analysts would normally consider the premium assessment a cost of doing business, but under these circumstances LACE has agreed not to downgrade a credit union solely on its first quarter earnings. Analysts will instead place emphasis on other areas (liquidity, asset quality and capital) when issuing its ratings for the first quarter. “We were acting on behalf of our member-owners and the entire industry when we approached LACE Financial to request a temporary adjustment to the ratings structure for the first quarter,” said David J. Serlo, President, PSCU Financial Services. “We believe these actions can help relieve further pressure on individual credit unions’ capital position, which was created by the NCUA ruling to replenish the NCUSIF.” About PSCU Financial ServicesBased in St. Petersburg, Florida, PSCU Financial Services is the nation's largest credit union service organization (CUSO) and serves more than 1,300 financial institutions nationwide. As a non-profit cooperative, the company is owned by more than 600 member credit unions representing over 13 million accounts and 822,000 online bill payment subscribers. Its Contact Centers handle more than 16 million inquiries a year.PSCU Financial Services offers 24/7 member support through four Contact Centers: its Eastern operations center in St. Petersburg, Fla.; a Western operations center based in Phoenix, Ariz.; and two call centers in Detroit, Mich. These Contact Centers perform member servicing and new member acquisition, cross-selling and automated lending solutions as well as support for debit/credit/prepaid cardholders and online bill payment subscribers. Established in 1977, the company provides a broad array of cost-effective, high quality financial services that include credit, debit, ATM, prepaid, bill payment and contact center solutions. PSCU Financial Services uniquely offers its members a full range of processing options, any combination from full service to in-house pass through processing for credit, debit and ATM transactions. As a leader in the credit union movement, the company offers gateway access to national and regional networks. It also provides full function ATM terminal driving services. For more information, visit PSCU Financial Services’ website at www.pscufs.com.
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