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are accessed: If you view your credit score at different times, there may be discrepancies since one score may be outdated.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!



  1. We had a moving presentation from Surry Medical Ministries and were consistently reminded of Do The Right thing. As discussed, many of OUR Members, won't be covered by the extension of medicaid in NC. Wouldn't it be great if that small interest increase in our members payment could go away so they could use those funds to purchase health insurance? Let's do The Right Thing and give them their money back and lower the rates for other higher credit members. All members benefit and we do Right for the entire membership.

  2. I am mostly fed up by the misrepresentation of RBL, it was presented as if it was something that was ONLY going to benefit these “Tier A” individuals, with better rates than our current. with our standard rates staying consistent for all other individuals. But that proved to not be the case, and it has been the COMPLETE opposite

  3. I thought it was interesting that they said over and over again the “change” will only benefit us employees and our members! Like really? Every time I hear them talk to us I feel belittled! Honestly they have no clue as to what we are saying; or choose to ignore what they hear.