As you can see, the 3-tier RBL system is structurally unsound, lopsided at the top... and, over time, has a tendency to turn white.
😎 You really can't have your cake and eat it too.
Strike 1: One in five Americans (@ 20%) are penalized with higher loan rates or out right loan denials because they have no credit history. Young Americans, such as recent high school and college graduates just starting out in life, are the most harmed. These young people are considered by risk-based lenders to be "guilty (and penalized) until proven innocent", not exactly in line with our American approach to justice - which is, last time I checked, "innocent until proven guilty".
Strike 2: A recent national, independent survey found that over one-third (34%) of Americans' credit reports contained erroneous data. And, even more outrageous, the burden (time and costs) of correcting the errors falls on the American consumer - you and me.
Strike 3:
African Americans disproportionately (54%) have lower, poor, or no
credit score. Probably don't need to say anymore about that because we
all know America is "not there yet" on racial equality. RBL is a step
backward in time on social justice for SECU and its member-owners.
* Source: CNBC News (2022)
✅ Let's hope the SECU Board will step back up to the plate!
To err is human, ... to "Do the Right Thing" divine.
To see all posts on a topic - click on a white box above. Or, click on a "Blog Archive" month bar below/right to view past posts chronologically. At bottom of page, you can click "Older posts" to look back at most recent posts. "Search" function is below/right. Best viewed on laptop, Firefox.
ReplyDeleteWe have 3 African Americans on the board to advocate for them and not sure who on the board has children but those board members should be looking out for the young adults. Why they seem so oblivious to these issues is perplexing ... I mean are you interested in helping credit union members and families or not?
ReplyDeletebecause there's more to the story.
DeleteIf you’re waiting on someone to help you, you will never get there…. You again you have to make a difference, you have to change the tide.
DeleteIf folks think everything is a-ok at their credit union then they are asleep at the wheel ...
ReplyDeleteDo you have data to support that these “strikes” are actually happening at SECU?
ReplyDeleteWhy would these statistics on credit scores NOT apply to the 3 million SECU members? Loans are made by Credit Score Number. Member is placed in Tier determined by SECU Board. Loan is approved or not. No appeal--that process was scotched almost two years ago. Member = Credit Score. Just a number determined by some algorithm by an outside company that contains errors. Can vary widely for no reason apparent to consumer. People with no debt can and do have poor credit scores. Payment history is now irrelevant at SECU!!! Only remedy is to bring in your Momma to co-sign your loan, Leigh Brady endorses this.
DeleteSECU has all the data. Leighdership knows the impact using outside sources for loan determination. So do you. Look at the terrible data on collections and bad loans. Using credit scores doesn't weed out bad apples, doesn't tell who will not pay SECUback, just that a percent in every tier will not. Won't. SECU now lends to that percent. SECU before Gym Haze and Leighdership was quite good at weeding out the deadbeats. Not now. And they don't lend at all to to the D and E folks who DO pay back. SECU now punishes every member not rated A by the credit bureau!! A people can almost always negotiate for a better rate elsewhere. Remind me, just what is SECU about? 4 more in 24!!!!
DeleteWealthy Mom Loans now available at SECU
ReplyDeleteThat should be the new tag line on SECU commercials going forward.
DeleteAsk at our next adviosry board how many loans are being denied and what members are telling us
ReplyDeleteAnd what they are calling us!
Delete