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?