Monday, October 30, 2023

SECU - Risk-Based Lending - Upping The Ante - #1  Over the last 12 months SECU has experienced a great deal of controversy - mostly unfavorable. If one had to choose a single issue of member discord, it would be the introduction of risk-based lending (RBL) at SECU in March, 2023. More than any other topic, RBL caused the highly unusual expulsion of three incumbent board members at the 2023 Annual Meeting. The three newly elected, member-nominated candidates - Perkins, Clements, Stone - all were firmly opposed to this lending practice. SECU has just announced the expansion of risk-based lending to personal and credit card lending effective November1, 2023 - along with substantial increases in loan rates.

Most working folks - and younger SECU members for sure - live paycheck to paycheck, without much margin for error.  These hard-working, two-income family folks are often just one major illness, one layoff, one extended-family emergency, one messy divorce away from financial catastrophe. Walking a financial high wire, without a safety net. And, in the "real-world, in real-life" really bad stuff does happen to really good people.

Evidently, the risk-based lending gurus at SECU believe the best way to help members, who have been side-swiped by unexpected financial adversity, is to charge them a higher rate on their loans.  If a member is struggling to make ends meet, then certainly "upping the ante"  by charging a much higher loan rate is bound to improve the member's ability to repay - right?  [
'Ya do follow that logic, don't 'ya?]  

But some good news, those same  SECU risk-based lending gurus have come up with a newly announced Member "Financial Life Preserver" loan which can be tossed out to members who are on the verge of financially "drowning"....


      "People helping people... sink or swim sink!" 


... btw don't ask about the rate!




  1. The credit union brain trust understands charging a higher interest rate to people that can least afford it will create higher loan defaults, higher delinquency, higher loan losses. The credit union brain trust believes they can make it up in volume. You can't fix stupid.

  2. am I surprised? no was waiting on it ... my guess without looking is they'll knock of .1% from a 'regular' loan rate, because that's how these DEI folks roll ...
    Fleece the Flock ... your Shepard is watching!

  3. Well it is our intent to lower ourselves to Industry Standards... so congratulations is in store for the current leaders of SECU you did it!

    SECU - There was a difference!

  4. Really was hoping we’d get some eyes and ears on the board to report back to the rest of us! Haven’t they already met? Why are we not getting reports from Parker, Clements or Stone??

    1. Hard being up against 8 others. Will be interesting to see if they can sway some of the others to see the light.

    2. give 'em a break! it has been ONE meeting. Can you imagine the atmosphere in the room after the CEO has called folks puppets in a national paper? gott' go through Hello bit and apparently CEO and Board had not imagined or prepared AT ALL for losing! Certainly didn't have talking points for the press that didn't make them out as idiotic.

    3. This is a marathon not a sprint ... 'patience Grasshopper' ...

    4. If we don't get reports back from P, C or Stone then we need some people who will. #savesecu

  5. Sounds like they are becoming modern day 'money changers' ... a way to spot a modern-day money changer is to notice his or her fascination with financial gain.
    Beware ...

  6. Replies
    1. Poor Leigh, remove chris a. and she might really be able to do her job right.

    2. Leigh is part of the problem and not just an unaware puppet being led by Chris Ayers. She is completely in sync with the board and Josh B. They are moving us further & further away from a credit union and closer & closer to that bad four letter word that begins with a B where the predatory lenders and greedy money handlers thrive.