LGFCU CEO Dwayne Naylor was one of the "Highlights" of the SECU Advisory Board Fireside Chats back in November [find his remarks @9:00 on NCSECU You Tube].
Of particular note was CEO Naylor's announcement: "So Local Government is going to serve our members in a different way [no branches] not better, just a different way. And be independent. Because we're going to be doing a bunch of things our members have been asking for. They've been asking for like solar lending, maybe hemp, cannabis, a lot of green lending..."
Dwayne Naylor, the new CEO, at Local Government Federal Credit Union (LGFCU), has a problem - and perhaps more than just one. As a result of the unsolicited "no formal proposal" to merge from the SECU Board last year, LGFCU has declared, as you see in the video, it will "become independent" and eliminate branch service availability for its 400,000 members in North Carolina in 2024.
The "becoming independent" assertion comes as a bit of a surprise to local government members who had been told, over the last 40 years, they had joined a separate credit union, specifically organized to serve North Carolina local government employees. Most folks believe, LGFCU has always had an independent - and effective - Board of Directors, which independently established policies, rates, and services. The independent federal charter, tax filings, audits, websites, logos, advisory councils, all certainly seemed to legally indicate independence.
LGFCU employees evidently thought they worked for a separate, independent cooperative. LGFCU has always told North Carolina municipal and county leadership that LGFCU was their, independent credit union focused on their unique needs. Granted it is a bit of a surprise those needs now include "hemp and cannabis", but as Mr. Naylor also asserts: "The world is changing" - perhaps, as he also says in a "not better, just a different way"
That "not better, just different way" basically is just the elimination of branch services for LGFCU members - nothing more, nothing less. LGFCU already provides online and mobile financial services, ATMs, 7x24x365 call center service. 'Course one can always improve speed and add bells and whistles to those service channels, but the fact remains - excruciatingly clear - that LGFCU members are getting the short end of the stick on service options and convenience, when branch access is eliminated. Pretty sure "hemp and cannabis" won't offset the loss.
LGFCU has its annual membership meeting in Raleigh on Friday, March 24th. Dare you to try and find out on the LGFCU website, where it is and whether or not LGFCU members can attend virtually. That's a notable change in openness and transparency from prior years.
* From a reader:
http://www.lgfcu.org/events/
Wonder why? Could it be that LGFCU members would reject the "not better, just a different way", if given a voice? Smoke that one over...
As a previous branch manager, now retired, I managed two branches that supported significant LGFCU membership bases. Two such members stand out that I dealt with weekly. Both worked with garbage collection in their specific towns and very much depended on their local branch financial guidance and help. Most loan advances rarely exceeded $100 or more but they genuinely appreciated the help they received from me and my staff. The stories I could share of these two. Working in garbage collections, their days started extremely early and went very late. Most weeks when we saw them it was Friday afternoon at 5:25 pm just before closing. We were glad to help them because we knew their needs. Knowing these two members as I do, chances of them having a computer much less internet access is slim to none. What will they do? Their basic cell phones were often cut off due to late payment. If they got behind on a loan, I never worried because I knew I'd see them on Friday. They needed our help and we were glad to serve them. WHAT WILL THEY DO NOW?
ReplyDeleteSuch a shame!!
DeleteIm sympathetic to LGFCU members and executive team, I FEEL they were pushed into this and/or felt they had no choice. It’s clear something changed with the two organizations since August 2021. My frustration lies with the messaging… just come out and say if there is something more going on… specifically from “Little Jimmy” Hayes. I think people would be more respectful and understanding of the situation. I don’t see this transition going smoothly, WAY WAY too rushed (as is with everything else Hayes implements)… I dread being at work in the Spring of 2024 when this rolls out
ReplyDeleteThey probably will speak up after they get away, they need to show nice face until they are fully separated. Little Jimmy could make things very difficult for them in the interim otherwise
DeleteTruth or Consequences...pretty sure and so sad...our Members are going to unfortunately be living the consequences. This could have all been prevented.
ReplyDeleteDon't know how true this rumor is but heard that SECU wanted to charge more than the 25% they were already charging LGFCU....
ReplyDelete