"We're SECU!"
- Too impersonal - SECU members are treated as canon-fodder with little room for exceptions, nor for mercy - not what a credit union is about.
- There is no appeals process.
- Credit score lending is based on a false statistical model - correct at the "macro theory level", but unfair and abusive at the individual SECU member level.
- Pricing "for risk" substantially overcharges the vast majority of SECU members in the higher risk tiers, the majority of whom faithfully repay their SECU loans - always have!
- Risk-based pricing is an unnecessary subsidy for more affluent SECU members, who are also unnecessarily penalized by SECU's low savings rates.
- Charging regular SECU members higher loan rates - unjustly - increases the risk of loan default, discriminates on the base of age, race and gender, and has severely tarnished the reputation of SECU,
The threat which is now waiting to bite SECU - as a risk-based lender - on an indelicate
part of its anatomy, is the concept of "disparate impact". Disparate impact is anything a lender does which unfairly discriminates against a "class" of borrowers - like "tiered" SECU members! Whether intentional or not, if the lender - read SECU - is shown to have adversely penalized a class of borrowers; lawyers are going to make SECU cough up a whole lot of cash to make amends.
😎 How do you know SECU is intentionally or unintentionally discriminating with RBL? Because the SECU Board and CEO just publicly confessed! How so?
Well, SECU has now admitted that the 5-tier RBL system installed in 2023 did not work and overcharged SECU members.
So now, "The We" have come up with the "new, improved" less unfair and less discriminatory 3-tier system!!
..."less unfair and less discriminatory"?... time to get out the snafu checkbook - once again?
How are the members benefiting from this new policy so far?
ReplyDeleteHow do you benefit from still being overcharged unfairly?
DeleteIf I poke out only one of your eyes rather than both. That's a benefit.
DeleteCan't tell you how grateful I am to The We for this wonderful lending and those low rates on savings. Such visionary leighdership.
Delete'They' will tell you how grateful you should be ...
DeleteEMPLOYEES WOULD BE WILLING TO TRY IT WITHOUT LEIGH-DERSHIP. MIGHT NOT MAKE ANY DIFFERENCE.
DeleteHas The Board and Brady started their New/New "Talking AT You" tour to promote the wonderfulness of the great improved Really Bad Lending? Can't wait to see the New/New talking points using their Really Bad Numbers. Oh yeah. Leap Year....
ReplyDeleteHonest question: if SECU is at risk for legal action due to disparate impact due to RBL, how are BOA, WF, and other lenders still afloat and under investigation?
ReplyDeleteFair question. First "answer" would be how did SECU make it through the first 86 years without being sued while using the best rate for everyone model? Second answer would be, with RBL SECU is using a credit scoring decision process which the loan staff, CEO, and Board can't logically explain - which means on the "witness stand" all will have to testify that they really don't know how it works! Third with the switch to 3-tiers SECU has "confessed" that the setting of tiers and rates is entirely "arbitrary and capricious" and can be changed on a whim by the Board - no statistical, rationale underpinning it all. SECU is "making up" rates, tiers, and terms on a whim which are directly harming SECU members to the tune of millions of real dollars - especially women, black and the young. Do take a moment to look up the phrase "arbitrary and capricious" .
DeleteLet me work on this further in some posts. But the real shame in the question is the implied idea that SECU should look to large, for profit banks for its ethical standards and practices. Maybe that is the bottom line concern of many members with the "new-new". SECU used to be better than that... and set its own standards based on the best interests of the members. Do take time to read or watch "The Big Short" or "Inside Job" - might enlighten your thinking.
Should I mention that lending delinquency and losses are tanking? Or is that just another fact to ignore?
SECU is also pushing to go into commercial lending. Not something currently allowed under state law. SECU's current Leighdership truly want to be a bank, but retain tax exempt status. Your photo at the open clearly depicts this! What a disaster that would be for ALL the members. This team led by Leigh Brady and Mona Moon do not know what they are doing, and refuse to see the negative numbers as a condemnation of their policies. The Leighdership continually offer one excuse after another for all the bad numbers and decisions made over the last three years. When Leigh Brady was appointed CEO by This Board, it was an opportunity to reverse course and return to "Do the Right Thing." and "Members First". Same loan rate for all, and excellent saving rates. That is clearly not going to happen. Good Faith to Leap Year. Who does Leigh Brady think she is talking to? Got an isolated Ivory Tower at SECU these days. 4 in 24 is the only answer. Policies could be reversed in a week after the election.
Delete"When Leigh Brady was appointed CEO by This Board, it was an opportunity to reverse course and return to "Do the Right Thing." and "Members First"."
Delete... and why did this not happen you ask?
Because she doesn't believe this ... or the board ...
they believe in taking care of the A paper group and the rest ... good luck!
HEY, not to worry, everything is crashing down around us but the good news is we're getting a facelift on our website!
ReplyDeleteThank God. The website is the REAL issue as we all know! Leigh-dership is working out great - thanks for saving SECU with a new, easier to navigate website!! That'll take the attention away from all the other crooked BS, right? RIGHT!
DeleteThis is what the members wanted ... not fair lending practices or better interest rates paid on deposits .... nope we were knocking down the doors to get a new website design .,..
ReplyDeleteIdiots rule. The Board should be embarrassed
ReplyDeleteWas hoping it was only the legacy 8, but looks like its all 11 with the new improved 3 tier screw. they've all gone over to the dark side. Good bye SECU!
DeleteNot so quick, you don't know what the vote was in that room. The 3 new ones have an unbelievably difficult job to maintain their ethics and beliefs AND have to get outvoted on certain policies every time.
DeleteBS they're silence implies consent.
Deletejust as guilty if not worse. Wish they would resign., so we can vote a new 7 in
Hey Mr. BS @ 12:20 if you think you know so much and have it all figured out they are accepting self nominations until June 7. Go for it!
DeleteThey voted for. New three are now just like the others. Kool aid must taste good
DeleteDown with the new 3 from what I can tell!
DeleteDon't be ridiculous. in what math can three people outvote eight? Enough with all this negativity. Stop complaining and assuming and keep voting.
Deleteas far as I know, voting records aren't available to the members...
DeleteThese comments are from some of the Leighdership. trying to make us members doubt that voting four more will change anything. It will change everything. 4 +3 =7. board majority. bye Bye Really Bad Lending!! The Bad Guys will be down to Four. Can't do anything. Just like our three right now.
DeleteOctober is going to sneak up on the board if they aren’t careful
ReplyDelete