Wednesday, March 15, 2023

SECU Lending Integrity Tells The Truth About Risk-based Lending - Finally! - Pinocchio # 8

 To: SECU Board of Directors

Dear Chairman Ayers,

Telling the truth has always been important at the Credit Union. In fact, in the past, members felt assured that that their interests and the truth always came first at SECU. "There is a Difference" and "Do the Right Thing" were important principles, not just marketeering slogans. (By the way, whatever happened to that SECU Ad Campaign? Did y'all agree it was pretty silly and wasteful, too?)

Was glad to see the truth being told about risk-based lending to advisory board members at the November Fireside Chats (the video can be found at NCSECU You Tube - not many folks have bothered to watch it, there is a good reason for that!). 

Spencer Scarboro, the long-time Senior Vice President of Lending Integrity (his title may have changed with the introduction of risk-based lending) - confirmed what we all knew and which you and the SECU Board have been so desperate to deny...that risk-based lending will hurt the majority of all SECU borrowers!


 Here's what your very own leader of "Lending Integrity" says about the impact of risk-based lending on SECU member-owners (at 1:07:52 on the video): 

"Based on the members who have borrowed from us over the last few years, almost 50% of our members will fall into that "A" credit score tier ."

So, let's take a little closer look at "Lending Integrity's" statement to the SECU membership, on your behalf.  As you know, prior to the mis-introduction of risk-based lending  in March, 2023, all SECU members received the same loan rates - all members were considered "A" paper until they proved differently (y'know the old -fashioned American principle of innocent until proven guilty!)

With risk-based lending, SECU now discriminates against members based upon a credit score, with higher loan rates - often much higher! - being charged to members who are arbitrarily placed into the "B, C, D, E," tiers, regardless of their record with SECU.

So, if Mr. Scarboro is telling the truth (see above quote "... almost 50% of our members will fall into that "A" credit score tier".) that would mean that the other 50+ % of SECU members will fall in the "B, C, D, E" tiers...and will be charged higher loan rates at SECU!

Over 50+% of SECU members are getting a higher rate "nose job" from the current SECU "we-know-better-than-you" Board.  And the "A" paper members are not getting much either - just a shot at not particularly competitive rates.

Mr. Ayers, yet another every member loses "new direction" from the SECU Board ! What will you think of next?


  1. We've been doing Tiered Based Lending (got to use the new term they've asked us to use, say it sounds better) for a few weeks now. I've yet to see our "best rate" of 4.75%. Why, because the majority of people don't finance cars for only 3 years. In fact, we're seeing A paper get rates in the 7% range because they are choosing a longer term. A loose, loose situation for everyone except SECU!

  2. That there is any fairness in Risk Based Lending is a False Premise. Risk Based Lending is a group dynamic as defined by the credit reporting agencies but for 9 out of 10 individual members in the group who have and will repay it is discriminatory.

    The real "RISK" is that you have saddled a loyal member who has and will repay with a predatory rate. Who does the member see about that?

    C'mon Man! It's not about getting the A paper back (another False Premise), it's about squeezing more and more income out of the C, D and E folks. But you can't tell that Truth in the sunlight, right?

    The members deserve a WHOLE LOT better.


    1. Totally agree. “Tier based lending” was never about giving “A” paper better rates it was about charging members who can least afford it higher rates.

  3. It’s behind me how they are justifying this. I just don’t foresee this working out. It already isn’t despite what Jim Hayes will probably allude to. Multiple members have already complained about RBL

    1. He doesn't care if members complain. A narcissist will never admit they are wrong.

    2. Hayes is NOT the one that matters. The Board could put an end to this immediately. The Board sets policy. Jim Hayes is the "puppet" who implements it. The Board is the problem,a HUGE problem. Completely unresponsive to the members they are supposed to represent. they are only representing the Elite Arrogant A paper and not even that well. A paper can get better rates at most any bank.

    3. Have they blocked the "Fireside Chat" video yet? To prevent The Truth about over charging the majority of members(that's us!!!) for their loans.

    4. If I were Spencer Scarboro, I'd be packing my bags....since he just made liars and fools out of the board and Jim Hayes.

    5. I'm from Lenoir County. I want to tell McKinley Wooten, this sucks. Thanks a lot for making my loan rate double, brother.

    6. We all know Hayes ain’t the one to focus on anymore. As much as I want to see him packing and getting canned, we have to focus on the BOD. They are clearly delusional thinking they are some sort of elitist group. I hate to break it to them. BOD; you ain’t better than me or the E tier members that call in. We are all the same and that’s what makes SECU and it showed in our financial products in the past with non discriminatory interest rates. “Other banks do it” who cares what other banks do…there is a reason people hate working there and hate going to them for help. NC SECU always did things the right way. #GiveUsBackOurTies #GivesUsBackOurCreditUnion.