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May 1 7 ,1 9 7 1
No. 1290____________________________ Des Moines, Iowa
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Propose F a ir C red it B illin g A ct
Minneapolis Hosts
Bank Marketing Regional
the previous balance method on
their revolving charge accounts;
(5) prohibit creditors from im
posing a minimum charge on their
revolving charge accounts; (6 )pro
hibit banks from using the funds
in a customer’s checking accoupt
in order to satisfy credit card
debts; (7)require creditors to cred
it payments on revolving charge
accounts on the date the payment
is received; (8) require creditors
to promptly credit consumers with
any e x ce ss payments they might
make on their revolving charge ac
counts and to refund any excess
payments if requested; (9) nullify
the holder-in-due course doctrine
in credit card sales; (10) allow re
tailers to offer cash discounts to
consumers notwithstanding agree
ments to the contrary between the
retailer and the issuer of the cred
it card; (11) require creditors to
disclose a brief description of
all items purchased during the
month and to identify the store
(3) require creditors operating re involved; and (12) require credi
volving credit plans to mail out tors to disclose on the monthly
their monthly statements at least billing statements an address
21 days prior to the time the con and telephone number to be used
sumer must make a payment in by consumers in the event that
order to avoid a finance charge; they have any questions con
(4) prohibit creditors from using cerning the accuracy of the bill.
“ Expanding Sales Profitably in
the ’ 70’s ” is the theme for the
Bank Marketing A ssociation’s Re
gional Conference, scheduled for
May 19-21 at the Rad is son South
Hotel, Minneapolis.
Gordon M. Malen, assistan t vice
president, F irst National Bank of
Minneapolis, is the chairman for
the event. F irst get-together will
be an “ Early Bird Reception” at
6:0(1 P.M. on May 19. The formal
program will start at 9:00 A.M. on
May 20. The meeting will conclude
with a luncheon on May 21.
The meeting is open to both
members and non-members of the
Association. Registration fee is
$50.
With bankers still shaking their
heads over the provisions in the
Fair Credit Reporting Act, which
became effective April 24, a new
more comprehensive measure deal
ing with consumer credit practices
has arrived on the scene.
Described as possibly the most
comprehensive measure dealing
with consumer credit practices,
the Fair Credit Billing A ct(S. 652)
introduced by Senators William
Proxmire of Wisconsin and Edward
Brook of M assachusetts, it would
amend the Consumer Credit Pro
tection Act. The following provi
sions of this measure give some
idea of its rather far-reaching
nature.
It would (1) require creditors to
investigate and respond to in
quiries about billing errors within
30 days, or forfeit the amount in
dispute; (2) prohibit creditors from
threatening consumers with an ad
verse credit rating while a billing
dispute is being investigated;
Credit Life Hearing Is Held
A scheduled hearing on the
credit life insurance business in
Iowa was convened in Des Moines
at 10 a.m. Tuesday, May 11, by
Iowa Insurance Commissioner Lome
Worthington. Commissioner Worth
ington earlier had notified 150 in
surance firms and other interested
parties of the hearing to discuss
12 points concerning credit life
on which he proposes to issue
cease and desist orders. Besides
(Continued on back page)
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LOCUST AT SOCTM AVENUE. DOWNTOWN DES MOINES. PHONE 243-8181
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MERCHANTS NATIONAL BANK
CEDAR RAPIDS, IO W A 52401
MEMBER F.D.I.C.
IOWA NEWS
DUNLAP: F . C. (C ecil)
man, Dunlap Savings
May 6 at the age of 71.
a director of the bank
Smith, chair
Bank, died
He had been
since 1926.
in the
near future.
HALLOCK:Two vice presidents were
recently honored with a banquet by
the staff of the Northwestern State
Bank. Mrs. Alice O. Pearson has re
tired as vice president and cashier,
and Duffy R. Nelson h as resigned to
become president of the State Bank
of McGregor, McGregor. Mrs. Pearson
had been with the bank since 1947.
Mr. Nelson joined the bank in 1965.
John Mangold
Senior Vice President
ALDEN: Mr. and Mrs. Leo Jorgenson
of Iowa F a lls have purchased con
trolling interest in the Alden State
Bank from E . L . Ackerman. Mr. Jo r
genson is president of the Citizens
State Bank in Iowa F a lls . He will
succeed Mr. Ackerman as president
at Alden, and the bank will continue
to operate as an independent bank.
Mr. Ackerman will continue his legal
work. W. D. C ate, executive vice
president, will devote full time to
insurance.
building
Hansen, formerly a director,
been elected chairman.
has
VA LLEY: Peter L. Heintzelman has
been elected executive vice president
and a director of the Bank of Valley.
He has been with the bank since
April 7 and before that was cashier
of the First National Bank of Lyons.
M INNESOTA NEWS
APPLETON: Lowell Wakefield has
been named executive vice president
and a director of the Northwestern
State Bank. He was with the Citizens
Bank and Trust Company, Hutchinson,
before joining Northwestern State
Bank last June.
MCGREGOR: Duffy R. Nelson a s
sumed the presidency of the State
Bank of McGregor last Friday. He
has been vice president of the North
western State Bank, Hallock.
MINNEAPOLIS: DeWalt H. Ankeny,
J r ., has been named vice president
and manager of the investment d e
partment, trusts and investment man
agement group at the F irst National
Bank. He succeeds Harvey N. D aniels,
whose advancement to vice president,
economist, and senior investment of
ficer was announced in the May
Northwe stern Banker.
MINNEAPOLIS: Bank Shares, Inc.,
Minneapolis-based bank holding com
pany whose main affiliate is Marquette
HOSPERS: Harold Van Wetter ing was BRECKENRIDGE: The election of a- National Bank, Minneapolis, has
recently elected assistan t vice pres new vice president and three' new filed with the Securities and Exchange
ident of the Hospers Savings Bank. directors has been announced by the Commission plans for issuance of a
He was formerly an assistan t cashier F irst National Bank. The newly- 475,000-share public offering of com
according to A. L. Jurriaans, president. elected vice president is Loy Berg, mon stock. Underwriters include
a Breckenridge insurance and real Piper, Jaffray & Hopwood, Inc., and
PERRY: Tom Smith, president, F irst estate man. The new directors are: Kidder, Peabody & Company. Part of
National Bank, will testify May 18 Robert V. Schuler, a local grain buyer the issue will be used to purchase an
before a Senate committee on the and operator of an elevator complex; 80% interest in Olmsted County Bank
Farm Credit System legislation. Mr. Chester Johnson, a local implement & Trust Company, Rochester.
Smith is Iowa’s member of the ABA dealer, and Oswald Lyngaas, a Wilkin
MONTGOMERY: Joseph F . Pany has
agricultural committee.
County farmer. All other officers were been elected chairman at Citizens
reelected. The sale of the bank State Bank, succeeding Lyle J.S to te s WATERLOO: Contracts have been was
announced recently in the bery. Mr. Pany has been a director
signed for the second part of a three- Northwestern Banker Newsletter.
since 1957 and is a local attorney.
phase building program by the Water
It was also announced that Roger
loo Savings Bank. The contract is
for a new drive-in facility on the FAIRFAX: Donald S e ll has sold his Neubauer has been advanced to a s
property recently acquired by the interest in the Citizens State Bank sistan t vice president. He is in
bank. Completion is se t for this fall.- to Mr. and Mrs. M. R. Kloster of
Edina. Mr. Kloster has been elected
president and chairman and Mrs.
N E B R A SK A NEWS
Kloster has been elected vice pres
PLATTSMOUTH: David J.D u ey , pres-, ident and a member of the board. Mr.
ident and cashier, C ass County Bank, Kloster has been in banking since
has gained control of the bank through 1934 and owned control of banks in
purchase of the entire stock of John
Butterfield and Worthington until he
Christy
Leo
Bob
E . Van Horne of Omaha, former bank sold them recently. Mr. Kloster an
Armstrong
Kane
Scott
chairman and president of Van Horne nounced that the bank will build a
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Is B a n k
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FIRST NATIONAL BANK OF OMAHA
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charge of the installment loan de
partment and collection s.
OLIVIA: A charter for the newlyorganized American State Bank has
been granted by the banking division,
Minnesota Department of Commerce.
Incorporators are: Charles Brown,
R . J . Rauenhorst, Roger Heller, Ken
Olson, and Clyde Ruebel, a ll of
Olivia; Dave Nicholson, St. Paul;
and Dick Schurtz, formerly vice pres
ident of the Bank of Willmar. Mr.
Schurtz will be president and man
aging officer of the new bank. Con
struction is expected to start soon
on the bank’s building, which will
include drive-in teller fa cilities and
some off-street parking.
PINE ISLAND: Carl L. Lokker, Jr .,
has been elected vice president of
the Security State Bank. He has been
associated with the F irst National
Bank of Le Center since last June as
cashier.
PROCTOR: Norman L. Schroeder has
been promoted from executive vice
president to president at the F irst
National Bank, succeeding J . L.
Peyton, who resigned as president
but will continue as chairman. Charles
E . R u ssell was promoted from cashier
to vice president and cashier.
ROCHESTER: MEI Corporation, Min
neapolis, has agreed to the sale of
the Olmsted County Bank & Trust
Company to Bank Shares, Inc., Minne
apolis-based bank holding company.
Terms ca ll fear Bank Shares to pay
a maximum of $3,650,000 in cash for
80% of the outstanding stock. The
sale is subject to approval of the
shareholders of MEI Corporation.
ILL IN O IS NEWS
CHICAGO: John D. McDougle has
been elected manager, trust invest
ment, at Pioneer Trust & Savings
Bank.
CLINTON: DeWitt County National
Bank has been purchased by the
Oberwortmann Group.
DECATUR: Dean E . Thom has been
appointed assistan t trust officer in
charge of accounting operations for
trust department activ ities at the
F irst National Bank.
HIGHLAND PARK: The Bank of
Highland Park has raised its loan
limit for any one borrower from
$125,000 to $150,000. The action
came as a result of earnings and
of the shift of $165,000 from undivided
profits to surplus,, the latter now
standing at $610,000.
MATTOON: A permit to organize has
been issued by the commissioner of
banks and trusts to a group proposing
to establish the “ Mattoon B an k,” on
East Broadway in Mattoon. The bank
would have capitalization of $300,000
capital stock, $300,000 surplus and
$150,000 reserve. The organizers, all
from Mattoon, are: Melvin C. Lockard,
Jew ell I. Dilsaver, Richard A. Lump
kin, James L. Schaefer, Virgil R .
Howell, James McBride, Frank Ronch etti, and Wilburt D. Walker.
OAKBROOK TERRA CE: The com
missioner of banks and trusts has
granted permits to organize banks
here to two groups. Organizers of
the ‘ ‘F irst Security Bank of Oakbrook
T errace,” to be located at 14th and
Summit, are: James J . DiOrio, Ben-
senv ille; Archie R . Gagne and John J .
Hamer, St.C h arles; Vernon S-H oesch,
John D. Neesley, and G.Ward Stearns,
Naperville; Kenneth Larranee, High
land Park, and Claude W. Youker, J r .,
Wheaton. Capitalization would con
s is t
of $300,000 capital stock,
$300,000 surplus, and $150,000 re
serve .
The other group proposes to or
ganize the “ Oakbrook Terrace State
Bank,” to be located at Roosevelt
Road and Summit (midwest) Avenue.
It would have the same capital struc
ture as the other proposed bank. Its
organizers are Robert S. Fiffer, Glen
co e; James Guido, Oakbrook; Patrick
Lizio, Medinah; Samuel A. Robbins,
Highland Park, and Clauncey Seandiff, Downers Grove.
PEORIA: Steven R . Koch has re
signed as president of the Jefferson
Trust and Savings Bank. No su c c e s
sor has been named.
P e rso n a l A tten tio n
to A l l T o u r
C o rresp o n d en t N e e d s
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______________________
Only Three Testify at
Credit Life Hearing...
(Continued from Page 1)
13th and M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C.
Vinton Nutt, executive vice president,
ContinentalWestern Life , Des Moines,
as to the nature of complaints re
ceived, how many and from what
sources, Commissioner Worthington
replied that he never alleged that
any complaints had actually been
lodged with the department. He indi
cated his reasons for stipulating the
12 points for “ cease and d e sist”
were based on examinations of com
panies and the feeling by the de
partment that people are intimidated
because they are borrowers and are
afraid to complain. “ We feel it is
our duty,” Commissioner Worthington
concluded, “ when we see improper
dealings in the insurance industry
to correct them.”
The Commissioner closed the hear
ing by expressing his disappointment
that more persons did not come forth
to testify , and over the fact that
those who have been most vocal
in their resistance and had the
most to gain, chose not to attend the
hearing or to testify. “ We can only
assum e,” he stated, “ that this is
endorsement of our method of proce
dure.” He said he expects to issue
orders very soon, or to notify in
volved parties there is no cause
to proceed, after a study of the
hearing testimony.
the commissioner and his sta ff,
there were 43 persons in the audi
ence. After the Commissioner’s invi
tation for testimony or statements
by any interested parties, only one
person testified —Dennis Freeman of
Storm Lake, who is a member of the
Iowa House of Representatives com
merce committee. Mr. Freeman is an
Iowa sa les representative for Scar
borough and C o., Chicago, a sp e cia l
ist firm in financial insurance.
Mr. Worthington stated that since
the Iowa legislature had not acted
on the department’s request to deal
with the credit life “ ab u ses” he
cited, his department assumed the
legislature fe lt the present laws
provide enough basis for taking
action.
Included in the list of “ abuses”
were: loading a borrower with more
insurance than the amount of the
loan, continuing the policy beyond
the life of the loan, post-claim under
writing, overcharging on premiums,
and tying loan approval to purchase
of credit insurance.
Mr. Freeman said he believes the
commissioner has authority to act, but
took issue with the commissioner on
the point of “ reasonable ra te s” and
said that on this basis he felt the
Rates 25 cents per word per
commissioner would have the matter
insertion. Minimum: 12 words.
of rate-setting resolved in a court
NORTHWESTERN BANKER
room by determination of what is
306 15th St., Des Moines, Iowa
“ reasonable.” Mr. Freeman said he
did not attend the hearing to debate
LOAN OFFICER NEEDED
the current $1 per $100 average rate
Position open in Northwest Iowa
charged. The Commissioner has sug country bank. Must have good ag
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I0WA-DES MOINES
NATIONAL BANK
Larry Welch
Member Federal Deposit Insurance Corporation
CNI, c / o NORTHWESTERN BANKER,
306 Fifteenth Street, Des Moines,
Iowa 50309.
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No. 1290 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Moines, Iowa 50309. Subscriptions 25$ per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all mail
subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
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