... here we go again!
Risk-based lending: The "A, B, C's" of discrimination.
✅ From the latest SECU CEO message to members [see here]
"The SECU Board also made some changes to our tier-based pricing model *1) where loan rates are determined by a member’s credit score on auto and consumer loan products. In April of 2024, *2) the Board reduced SECU’s 5-tier model to 3 tiers, with A credit score borrowers receiving an A rate, B borrowers receiving a B rate, and C, D, and E borrowers, as well as *3) borrowers with no score, receiving a C rate. Before the introduction of tier-based pricing, *4) SECU provided “one rate for all” that was a B- to C+ rate."
*1) "We" don't really care to hear your story, you're just a number (credit score) to us! Numbers don't lie, you might!
*2) "We" made a mistake with the 5-tier model, it was overcharging members. "We" are now overcharging you less! You're welcome!
*3) Many younger members, like new teachers, haven't had time to establish credit scores ("no score"). "We" have decided to charge young members like that the worst rate ("C"). Glad to help!
*4) This is the persistent "nose grower" statement, but why argue!
😎 Please take a look at an example of what will happen,
when you elect the 4 member-nominated candidates:
✅ Your rates under the incumbents: A = 7.25% B = 8.25% C = 9.25%
✅ Your rates under "4 More in '24!": A = 7.25% B = 7.25% C = 7.25%
😎 "End the Spin"!!!
Vote "All 4 in '24"!!!
Jean Blaine - Susie Ford - Julian Hawes - Kirby Parrish
End Risk Based Lending! Restore the same, best rate for every member. End this unfair practice!! Vote Blaine-Ford-Hawes-Parrish!
ReplyDeleteThank you! I think it's crazy that before we could help someone with medical debts, a charge-off, or old collections, we could recognize that small things can happen that are out of one's control. For instance, my wife missed just one credit card payment in ten years, which caused a huge drop in her credit score. It's frustrating that a single mistake now defines her credit history, rather than the ten years of on-time payments.
ReplyDeleteit's a scam that your elected officials allow to go on ... all for the sake of Profit!
DeleteI find the claim that a 2% Money Market APY is "strong" in the recent email to be particularly infuriating.
ReplyDeleteI can open a savings account online at Discover in about 5 minutes and be getting 4.3% APY. More than double! That's not even an STC or even a Money Market. Just their regular savings account rate...
It used to be that if members could get a better rate elsewhere, we'd actively encourage them to do that. Because we had their best interests in mind and wanted to do what was right for them to be in the best financial situation they could. We'd say "hey if you want to move your money to X bank that's absolutely fine. We'll be here when you need us".
And invariably they'd almost always come back to us. Know why? When you demonstrate that kind of genuine care for a person, it stays with them. They knew we had their back. They could trust us to do the right thing. That we weren't just another bank. We were THEIR credit union.
And you know what? That's more effective than any marketing campaign, no matter how much money you might splurge on TV commercials. And it's more effective than any "promotional" STC rate. When you do the right thing and treat the member as a human being instead of a "member number", you will earn their business. Even if you don't have the absolute best rates (you should still endeavor to offer as good a rate as is fiscally sound, of course).
That's how you create loyal members for life. The members that even when they're struggling to make ends meet, they'd be sure to pay their SECU loans first before any loans they might have with some other institutions. We had their back, they had ours.
Now the CEO is trying to deceive the membership into believing their awful rates are good. It frustrates me to think of all the members sitting with huge amounts of money in SECU's share and MMA accounts that have been yielding woefully low dividends for FAR. TOO. LONG.
And the trust the members had in us? The reputation we had in our local communities? Long gone. And it's a tragedy.
Bravo! Well said!👏👏👏
DeleteTotally agree. Just about spit out my water when I read the "strong" 2% claim. Dishonest.
DeleteAmen!
DeleteConfirms it. 4 More in '24!
ReplyDeleteEvery time I point out RBL being wrong I always get told it’s needed to pay for collections. We survived decades without that needed why now.
ReplyDeleteI was told by someone the other day that RBL is ok because members just accept whatever rate we give them. Our job use to be to help the members not screw them over just because they don’t know better 😢
ReplyDeleteSpencer Scarboro who is an svp in LA told us that over half omembers are not A tier.. half of our members are being overcharged.
ReplyDeleteSo ending RBL would help half our members and would do no harm to the other half? No brainer…
DeleteDon't worry the board will find a way to turn the clear win-win into a lose-lose for us. Been doing it for 3 consecutive years now
Delete
ReplyDeleteThey have no consistent moral foundation, other than to do or say whatever it takes to garner the power they so cravenly desire ... they think they've been given the power to rule rather than to do the will of the member/owners ... but again people are catching on ...
If you don't know what the truth is you're lost .,..
ReplyDeleteI've been very thankful for all the opportunities and benefits that the credit union has given me and my family. I honestly believe it was a Godsend ... and I wish to pass on these 'unicorn' financial opportunities to the next generation as I believe the founders expect of us.
ReplyDeleteThese policies aren't for everyone, but we walk through the narrow gate on our way to helping our brothers and sisters aka member/owners of SECU! If we do this we will be 'Profitable' and in more ways than just the bottom line ... because 'For what shall it profit a man, if he shall gain the whole world, and lose his own soul?'
When we pay it forward it will be paid back...
"Give, and it will be given to you. A good measure, pressed down, shaken together and running over ...”
We will be the shining light at the top of the hill!
https://www.theassemblync.com/business/secu-credit-union-vote/
ReplyDelete