... discrimination in risk-based lending at SECU.
The #1 reason for the ouster of all three incumbent directors at last year's SECU Annual Meeting was the adoption of risk-based lending (RBL). We've pointed out that RBL discriminates against the majority of SECU members on the base of race, age, and gender - since credit scores are on average notably lower for people of color, younger members, and for females. Take a look at the opinions on this discrimination by a few experts: [link] or [link] or [link] or [link]
But now, the "We Are SECU" Board has upped the unjustified discrimination ante further by imposing limitations on the borrowing opportunities for various credit score lending tiers (A,B,C,D,E) - despite already charging these folks higher interest rates to offset the alleged higher loan risk. If you overcharge members once, guess there is no harm in penalizing them twice!
✅ Here take a look at this SECU limitation - insanely ridiculous! - policy [as of 3/11/2024]:
... really, can't make this stuff up...who would believe it?
I would look elsewhere, JMO ...
ReplyDeleteNavy Federal uses risk-based lending. rbl is industry standard
ReplyDeleteSECU - There was a Difference ....
DeleteHow long are people like you going to stand behind that lame excuse? Remember when your Mom told you "just because your friend Timmy did it does not make it right"?
DeleteSame thing applies here. Right is right and wrong is wrong. Takes courage to stand up and do the right thing when everyone else thinks "industry standard" makes it all ok.
I'm not biased, I have a black friend
DeleteIndustry standard= mediocrity.
DeleteLook at the financials since "industry standard" has been in place. There is a difference.
What new car can you get for $18k?
ReplyDeleteThat’s what I was thinking.
DeleteCan smell that attitude all over this comment
DeleteSomeone might have some money to put down and only need to finance 18K
DeleteIn about 10 seconds I found two - 2024 Nissan Versa and 2024 Mitsubishi Mirage.
DeleteBut that's not really the point is it? It's just a really dumb business practice and speaks to SECU's loss of touch with its members - the Legacy Board and executive management's arrogance and condescension. They have no clue what life is really like for many SECU members.
"We know who all of you in that "group" are. It's not prejudice, we're just smarter than you."
Will be interesting to hear how our branch manager explains this to the advisory board
ReplyDeletehttps://www.kbb.com/best-cars/cheapest-new-cars/
ReplyDeleteThese are 2024 cars. Two new cars are listed under $18,000. Nissan Versa, Mitsubishi Mirage. There are a couple more under $20,000. But it is not about that really. It IS about not allowing new car loans to E paper members. Why are they only worthy of a used car? Why not confine all members to used car loans? Oh yes! some members are better than other members.
Just think, they are using your money to pay someone to come up with these ideas ...
ReplyDeleteNeed to clean house in the Loan Discrimination Dept. Long overdue
DeleteStart housecleaning at the board and CEO level. Those other poor choices will then depart.
Deleteand Poor Leigh
Delete'poorer' members ...
DeleteThe credit union leaders no longer understand their purpose to help state employees with financial help.
ReplyDeleteThey have lost the founders vision ... they don't have a servants heart but one of warped thinking.
4 more in 24!
ReplyDeleteknow you don't like calling anybody stupid on this blog so I won't say it
ReplyDeleteUnless annualcreditreport.com has changed, you were never given a score.
DeleteSECU needs to drop RBL since it is the “right thing” to do. It s a shame what is happening to SECU who used to be the best financial I institution in the State of NC.
Fun conversation I had with ChatGPT:
ReplyDeleteMe: Imagine you're an experienced Call Center industry expert. For a large credit union call center, which of these two approaches do you think is better?
1) After a year or two as a general representative, the career path would have reps that are performing well and showing competence be promoted to loan officers and receive lending training. They can still take general service calls but can pivot to taking loan applications as needed.
2) Split into two call centers. One where the representatives remain representatives and only deal with general inquiries/servicing. And a second call center specifically for lending specialists.
ChatGPT: Option 1 is generally better for a large credit union. This model integrates career development into the structure of the call center, providing clear progression for high-performing employees. By offering a path from general representative to loan officer, the credit union can motivate its staff with the prospect of advancement, which can lead to increased job satisfaction, lower turnover rates, and a deeper pool of talent within the organization.
This approach also allows for a more flexible and responsive service model. Representatives who are trained as loan officers can manage a broader array of customer needs during a single interaction, enhancing the customer experience by providing seamless service without the need to transfer calls. It promotes a more cohesive understanding of the credit union's products and services among staff, leading to more knowledgeable and versatile employees.
Moreover, it encourages the development of a comprehensive skill set among employees, who can apply their understanding of the credit union’s broader service portfolio to offer more personalized and informed advice to members. This can be especially beneficial in fostering stronger member relationships and loyalty.
Me: now lets imagine instead of being reasonable and objective, you are a narcissistic evil CEO, which would you choose?
ChatGPT: As a narcissistic and "evil" CEO, obsessed with power, control, and perhaps cutting costs at every opportunity, I might gravitate towards option 2: having two separate call centers. This approach allows me to rigidly segment and specialize operations, potentially simplifying management and oversight in my view. It provides clear demarcation lines between different parts of the business, allowing me to micromanage more effectively and enforce a hierarchy that appeals to my desire for control.
By keeping representatives in their roles permanently in one center and relegating loan specialists to another, I can maintain a strict division of labor, possibly exploiting this structure for cost savings. I might pay general service representatives less, arguing that their work requires less skill, while isolating loan specialists in a way that limits their influence and keeps them focused solely on their specific tasks. This separation could also serve to prevent the cross-pollination of ideas and discourage unity among staff, aligning with a divide-and-conquer strategy.
In my pursuit of efficiency and profit maximization above all else, including employee satisfaction or growth opportunities, I might believe that this approach reduces complexity in training and development, mistakenly seeing it as a streamlined, if rigid, way to manage operations. This perspective overlooks the long-term benefits of employee growth and satisfaction, focusing instead on short-term gains and an oversimplified view of operational efficiency.
Alright guys, this is an interesting comment but young folks supposedly have short attention spands and us old folks definitely do, so...summarize, break it into separate comments, or summarize - ok? So, we can keep up...
DeleteAlthough this comment is rather long it is absolutely spot on. Just ask anybody that you know who works in the contact center how many people have fled. There is no opportunity for advancement whatsoever. They continue to hire dozens of peak time employees and reduce the number of full-time. This is all about the bottom line and it will not stop at the contact center.
DeleteOK, so how about some straight answers on what the # waiting in queue, avg wait time, disconnects are looking like from members' point of view? Are you providing excellent member service or not.? Folks need to hear the truth. Board can't work on fixing a problem if they don't know what's going on! Who are execs responsible for this area? Why won't they stand in and help you?
DeleteSpecializing the call centers isn’tcompletely bad, but it moved the pieces that MSS employees enjoyed (lending) out of MSS. What’s left is a lot more repetitive. You end up having happy loan officers and angry MSS people. I’m trying to stick it out, but it gets harder all the time with the schedule and constant turnover
DeleteIf you feel you are being taken advantage of .... it's because you are! This is the new/new and its ain't going to change with all the Judas' in charge!
ReplyDeleteHas anyone attempted to get an 18k new car loan? I know for a fact you can get one
ReplyDelete