Friday, March 31, 2023

LGFCU/CIVIC - Forward Without Branches - Just Same Ole "Business As (Un)-Usual"?

Lopping off the branch... consequences of that infamous "no formal" merger proposal by the SECU Board continue to reverberate all across North Carolina. Rarely has such a thoughtless and reckless, "informal" act created so much concern, for so many, so unnecessarily. 

But "the best" may be yet to come. LGFCU has announced to its 400,000 members, that beginning next year (March/2024), the credit union will go "all digital" and discontinue offering branch service. One suspects from the initial statewide reaction that the "all digital" transition is going to be both difficult and unpopular [link to WFMY news broadcast]. The end results may not work out as well as the leadership at LGFCU has trumpeted and forecast.

Dwayne NaylorSo here is a suggestion on how CEO Dwayne Naylor can "test the waters" without getting into further hot water. The thought arose while looking at a recent, new membership letter mailed to new accountholders by LGFCU. (Do plan to save and preserve it, as it may become a rare "collector's item").

The letter said the following:

WELCOME TO LGFCU... and all the smart advantages of your new membership!

Thank you for joining the Local Government Federal Credit Union family. As a member of our Credit Union, you can expect:

  •  A wide variety of financial products and services to meet your needs                                                    
  • Convenient online and mobile access to your accounts through MemberConnect
  • A network of more than 250 branches and over 1,000 Cashpoints ATMs across the state
  • A helpful website,, that includes personal finance advice, a list of complimentary services, financial calculators and much more!  

The letter was dated in March, 2023 after the LGFCU Board had approved the staff recommendation "to digitize the LGFCU membership". Let's see; anyone else think that this letter may create some problems for LGFCU with disgruntled members in the future? Won't that third bullet point cause all sorts of ill-will and reputation risk for the credit union? You betcha it will!

So, here's the suggestion. If Mr. Naylor is certain that his new digital plan for LGFCU/CIVIC is a winner, then why not instruct SECU to stop opening LGFCU new accounts in those (soon to be disappearing) branches, starting April 1, 2023? Get started with the all new digital credit union right now! SECU, of course, would continue to serve all existing LGFCU members until March, 2024 as planned.

No sense risking being accused of a "bait and switch" by new LGFCU members, is there?. And, CEO Dwayne Naylor will get a real life, real time, real world "vote of confidence and validation" of his "not better, just different" all digital vision. 

Can't miss idea, right?


Yep, April Fool's Day sounds like the right day to start digitizing 'em. 

Thursday, March 30, 2023

SECU Risk-based Lending - Uh-oh, Better Call "Legal" - RBL #17

 To: SECU Board of Directors

Chris Ayers ImageDear Chairman Ayers,

The SECU Board has implemented a risk-based lending system at SECU, which is - as we speak - overcharging thousands of SECU members literally millions of dollars in excessive interest costs.   

Mr. Ayers, you claim that you and the SECU Board have diligently vetted the fairness and accuracy of using credit scores to charge SECU members in RBL tiers "B, C, D, E" higher loan interest rates. You make that claim despite the fact all three major credit bureaus publicly state credit scores can not predict if an individual borrower will default in the future. What "secret" about credit scores do you and the SECU Board know, which the credit bureaus don't know?

Can we also assume that you and the SECU Board are aware of the following six facts about the unreliability of any given credit score?

👉 6 reasons why your credit score differs:

  1. Credit scoring model used: There are several models out there for scoring your credit history. Companies evaluate the same main factors of your credit history like payment history and utilization rate, but use their own formulas to weigh each factor.
  2. Score version: There are dozens of credit score versions that are broken up into base scores and industry-specific scores.
  3. Credit bureau: Credit scores are calculated using data listed on your credit report, which comes from one of the three major credit bureaus — Experian, Equifax or TransUnion. Your score differs based on the information provided to each bureau,
  4. Information provided to the credit bureaus: The credit bureaus may not receive all of the same information about your credit accounts. There’s no guarantee that the information will be the same across the board, creating potential differences in your scores.
  5. Date scores are accessed: If you view your credit score at different times, there may be discrepancies since one score may be outdated.
  6. Errors on your credit report: Your credit score can reflect any errors that appear on your credit report.

Credit scores are neither predictive nor reliably accurate, according to the experts in the credit scoring business (not to mention highly discriminatory!) 

But Mr. Ayers, despite these facts, you and the SECU Board petulantly persist in using credit scores "to profile" and overcharge at least 50+% of SECU borrowing members. Why?

Better tell "legal" to get ready...yet another unforced error, yet another unnecessary cost to the SECU membership and yet another black eye for the Credit Union.


Let's see what the legal definition of overcharging is: to gouge, to stick, to fleece, to skin, to clip, to soak, to sting, to cheat, to defraud... yep better give "legal" a little call!


Team Players, Raise Your Hand If You Agree With Me...


...As a team player, let me put that to you another way, raise your hand or else! 😃😃😃😃😃