On February 18, 2023, the State Employees Association of North Carolina (SEANC) wrote the SECU Board asking that the proposed introduction of risk-based lending at the Credit Union be rescinded. The SECU Board responded on February 24, 2023 with an invitation for SEANC leaders to visit the credit union to discuss risk-based lending. SEANC welcomed the invitation for discussion and immediately accepted. The joint meeting was scheduled for March 23, 2023. On March 1, 2023 the SECU Board began risk-based lending at SECU!
Despite the slap in the face, SEANC honored its commitment to meet with SECU on March 23rd. As you might imagine, no progress was made on RBL. Nothing seems to change the mind of the current SECU Board. Why change your mind, when you always know what's best; when you feel no responsibility to justify your decisions; and when you believe you enjoy immunity from being held accountable?
One snippet from the meeting, which got shared around, was SECU's statement about a risk-based loan example: Look it's only $34 more per month, what's the problem! - a response which kind of exemplifies the new culture, new attitude among the leadership at SECU. That "slightly higher" $34 per month costs that member $2,000+ extra ($34 x 60 months = $2,040) over the life on an $18,000 loan!
Breaking it down to imply it's just " a slightly higher cost" (see loan example and "extra interest" column on chart below) is right out of the sales play book of your local "Fast Eddie's Used Cars Sales and Towing Service - Buy Here, Pay Here" franchise. Those car dealers - often as unreliable as the cars they sell - give a whole new meaning to the phrase "roadside service included with all our cars"!
Here's the truth which SECU refuses to speak: Many beginning level jobs for state employees and new teachers pay @ $36,000 per year, or about $3,000 per month. After mandatory deductions - taxes, social security, FUTA, retirement and other such mandatory reductions - take home pay is @ $2,100 to $2,400.
While that "just an extra $34 per month" is evidently not a big deal to the SECU ("Let them eat cake") Board. Over the life of an $18,000 used car loan, that "extra $34" equals a month's take home pay for the SECU member...
By adopting risk-based lending on this loan, the SECU Board has decided to unjustly grab a month's take home pay out of the pockets of hard working North Carolina state employees and teachers.... that's not right.
It’s really sad what SECU is turning into. I’m glad Hayes and the board can sleep at night. They don’t have to deal with our members. I guess SECU needs the money for all the BS positions they are creating to hire outsiders as SVP’s. Kind of a slap in the face for current employees.
ReplyDeleteProof of his (dis) honesty and the SECU board should remember, wasn't there something in a early news release from Mr Brinson saying he was chosen because he wasn't planning on bringing in his own entourage. No, they'll come later. He has no confidence in us-works both ways.
DeleteWell, three board member positions are up for election in October. If nobody steps in, then, nothing will happen. Most of the time board members run unopposed. In the end it doesn't matter how much kicking and screaming one or a group does. What matters is if you get members voted on the board willing to challenge Chris Ayers and Jim Hayse.
ReplyDeleteWhich members are up for election ?
DeleteSECU Board term information can be found on 2/23/2023 post [link]
DeleteGarland, Parish and Sanford.
DeleteSo essentially there is nothing SEANC can do?
ReplyDeleteSEANC meeting scheduled for March 23rd to discuss RBL with board, but RBL began in branches on March 1. He answers to no one.
DeleteMore than a slap in the face.
nominate them for the BOD in 2023 :)
DeleteWhat would they be able to do? They are only an association for State Employees. SEANC and SECU are two different entities.
DeleteJust a reminder- a very valuable part of SEANC are those DOT employees who formed lines through and outside our branches prior to direct deposit to use their credit union every two weeks. They knew they owned us, still do and are still around. A very important part of the credit union movement in NC.
DeleteOnce they complete the rebranding, have anyone able to join and business accounts established then State workers won't matter and this company will no longer be Nort Carolina State Employees' Credit Union.
DeleteOf course it would be denied again now but rumors had it Gym Haze already had a new name picked out for SECU, but can we believe him? Time he's through with credit union, it may need a new name to escape the bad publicity.
DeleteThere’s a reason why the state is no longer part of the new logo Hayes wants to use. Too bad no one in upper management had enough sense to make sure it was properly vetted.
DeleteThe genius didn't know another credit union in Maryland had SECU trademark. State Employees Credit Union of Maryland. Word is he is wanting to purchase the trademark.
DeleteHave you got copy of new Logo without nc
DeleteSounds like big Jim has another merger proposal in mind. Our brilliant Board stole him away from Maryland...I hear they are still laughing at our ridiculous 11.
DeleteHaze is big on ambition, small on smarts.
DeleteI have what may be a stupid question…. What does Hayes and the BOD get out of any of this? What’s there motivation? Why?! bod are volunteer, what do they gain? Is there something in Hayes contract that says if you increase revenue, up membership, etc. in X amount of years, you get some kinda of bonus? I just don’t get it
ReplyDeleteDefinitely not a stupid question, 85+ years of listening to what some might have thought were stupid questions is what made SECU the powerhouse it is. Every member or employee had the right to question what if it or why? And they were heard. Some of our best ideas and services came from those stupid questions.
DeleteMotives are a little trickier subject but Hayes has told us & showed us his: Power, Money, Growth not for our Members, but for himself.
For a Volunteer Board , quite possibly no personal motives, it appears 6 of the 11 wanted to make a change. Well they accomplished that- our Members, Staff and
Credit Union and LGFCU Members are paying the price
SECU has gone from member-focused to income-focused.
DeleteFunny, my paycheck hasn’t changed
DeleteHayes is only concerned with adding to his resume. He’s not going to stick around to deal with the fallout. None of these new highly-paid executives will. They don’t care about the long-term health of SECU. And the BOD finally gets to open their business accounts at SECU.
ReplyDeleteCan't happen soon enough, but just be sure he takes his entourage (the ones he wasn't bringing in) with him. OUR LEADERS will pick up the pieces and get SECU back to what it was and go forward, because we are a movement and a force. BODs, what were you thinking? We weren't broke, didn't need fixin.
Deletehttps://www.wfmynews2.com/article/money/lgfcu-to-end-in-person-banking-sending-members-to-online-customer-service/83-11b57ea1-5f56-459e-98df-2cec01251b9d The rumbles are being heard
ReplyDeleteThank you CEO Hayes and CEO Naylor you just gave NC Bankers a reason to smile. Let's see how much of both credit union's marketing budgets are going to be used to not promote credit union services in the state, but will now have to be spent doing damage control. 40 years of outstanding service to these NC members going down the drain. I feel sorry for the SECU branch and call center staff employees who will be the ones dealing with your angry members when this news is carried all over our state.
Delete