Tuesday, December 19, 2023

SECU Board:: Risk-Based Lending - Loose Logic, Penalizing Members Who Have Done Nothing Wrong... Just Because They Can.


Most of us have had the unfortunate experience of "overstaying our welcome" and getting one of these.

Happens to the best of us, an unhappy experience! But how would you feel if the policeman came up to your car - just after you finished parking and feeding the meter - and put a ticket on your windshield? You'd probably ask what "the whatever" was going on, right?

And how would you react, when the officer said you were being ticketed in advance because you looked like (often called "profiling") someone who would probably "over-park". After all, you'd had a ticket before, hadn't you? "Well yes, but let me explain..."

Overcharging all "B, C, D, E"- tiered SECU borrowers with risk-based pricing uses the same, identical "pre-ticketing" illogic. There appears to be some past blemish on the member's credit history, which has lowered the score. The SECU Board no longer cares to hear the: "But let me explain..." That policy of unconcern and indifference is costing SECU members hundreds of millions of dollars in unjustified excess interest charges. 

But here is the real rub on the SECU Board's glib, hundred million dollar member-punitive overcharge. The SECU Board, aided and abetted by senior loan administration executives trying to cover their tracks (soaring delinquency and loan charge-offs), are overcharging the wrong folks - the good members!  

Who pays that extra hundred million dollars or so in interest? Why, of course, it's all the SECU "B, C, D, E" score members who do repay their loans to SECU - the good folks! - and over 98++% of those members do repay, always have! 

😎  SECU members who default on a loan - whether of A, B, C, D, or E ilk - don't pay the excess interest charges!!! How do you know that? Well, just common sense y'all. Members who default don't pay those punitive interest surcharges......

                              'Cause they don't pay at all!!!


Got it? Pretty simple isn't it!

 The SECU Board is willfully and unjustly "pre-ticketing" the majority of SECU members who pay as promised with risk-based lending.


  1. Loan Administration Hasn't "gotten" it since Mike Lord left. The Board who hired Haze and sets this policy NEVER understood the BUSINESS model at SECU much less the underlying philosophy of real people actually helping other real people. That Haze-Board (and Brady)believes any one other than an A rated credit score member is irresponsible with money and deserves to be punished by paying more in interest. How much the member is punished depends on whether the member is BCD. Isn't E too bad to lend any money to? those guys really need punishment--send them to the loan sharks. Oh........

  2. The CEO has overstayed her welcome. Issue the CEO a parking ticket and a PINK SLIP. Please someone tell her: "You're fired." Risk Based Lending is just another money grab by the credit union. This defines: GREED - When more is not enough. It is a shakedown of the people who can least afford to experience a shakedown. What is the demographic fallout from this shakedown? I suspect it is discriminatory to a population that experiences discrimination on a regular basis. It's not risked based lending...IT'S EXTORTION. Legal extortion. Not moral. Not ethical. The CEO has lost her moral compass.

  3. Replies
    1. I'm onboard .... spread the word, take no prisoners!

  4. In all these months (years?) of this RBL discussion I have yet to hear a legitimate defense from anyone at SECU (CEO, CFO, CLO) of why it's okay to overcharge thousands of members at a cooperative. "We HAVE to get the A paper back" is all I've heard. Or it's "Everybody else does it". No numbers, no projections, no explanation for how you rationalize the B, C, D and E overcharges...nothing. Wanna know why? 'Cause it's indefensible. Period.

  5. Dumb program, dumber board.

  6. Great analogy. I get it, so will other members.

  7. Who are the folks in the Loan Discrimination department?

    1. Great new moniker! Too sad for the members and the poor employees that are left implementing such trash.

  8. NPR's Due South interviewed Gabriel Treves-Kagan from Latino CU on Dec.19th. Excellent interview that highlights why we have credit unions. Can be found on their website https://www.wunc.org/show/due-south.