Saturday, October 5, 2024

Commenter Points Out The Real Life Consequences Of Risk-Based Lending On SECU Members...

People clean debris near a sign that says "blessed"  
A blog commenter on October 4, 2024:

"And just think. All these people stranded in the mountains with no mail service and no internet service and 100 other problems are probably going to miss a payment or two. Whoops! Now they’re in the bottom credit score tier for the next 7 years." 

Really bad things happen to really good people... including all SECU members. The SECU Board  - in its elite wisdom - however doesn't want to hear about it. You are your credit score and with RBL "We" will penalize you with higher interest rates on your loans.

✅ After 85 years of highly successful results, the SECU Board in 2021 dispensed with the statewide member loan review committees at SECU. The Board evidently felt that volunteers had become a problem, a liability, and no longer understood the "complexities" of a modern day credit union. After all, what does a member-volunteer know about loans anyway? There was no consultation with the members of the committees, no discussion with the SECU membership; the "We Are SECU" crew simply pulled yet another "We Know Better Than You" move. 

Credit committees and loan review committees have been a cornerstone of credit union principles and practices from "Day 1" - part of the original charter and bylaws of SECU, still a part of federal and state credit union laws. The idea behind a credit committee - a member-volunteer led loan review and appeals board - was sound and simple. Each member loan request deserved a thorough and fair review by the credit union - who could argue with that idea?   Our real flesh-and-blood neighbors and co-workers are at the heart of every loan request.  The loan is important to the member; the member is not there asking, just for the fun of it.

The loan review committees were composed of local, member-volunteers, who were empowered to make the final decision on all SECU loans! Risky business? Not really, the volunteers knew whose money they were lending - theirs!  As an appeals group, the loan review committees dealt only with the most difficult and exceptional loan decisions, generally involving families in severe financial crises. The meetings were difficult work, emotional, often heart-wrenching - and always very, very personal.  Local member peers taking the time to listen to a fellow member always was an invaluable plus - building a unicorn takes time, requires trust, and caring.

✅ But, let me introduce you to David Spaugh, who served on a loan review committee for over 25 years. David was a rock, an anchor. He didn't prejudge; he wanted to hear the whole story; he wanted to make the best decision; but most importantly, he wanted to make the right decision.

David Spaugh said two things about his service on the loan review committee. David said: "Some people think we're here to give people a break, I think we're here to give people a chance!" He also once said he didn't feel he was serving the purpose of the Committee well. Asked why? David Spaugh said this: "I have a tendency to be overly compassionate."

http://www.buckleshop.com/images/4571.jpg Lets all hope that State Employees' Credit Union is willing to take the risk of living in a world, where people care too much. 

Expert lenders know that a loan decision involves more than just "crunching the numbers"- amateurs (even when hiding behind an "SVP" title) don't. You can't listen to numbers. A credit committee gives members the chance to explain, to clarify, to be heard. A credit committee gives the credit union a chance to listen, to make sure the best loan decision... the right loan decision is made. 

✅ Is there a downside to a second opinion, an open dialogue, a concerned discussion? A downside to caring too much about a member-owner, asking for help? 

 

SECU members in western North Carolina are getting ready to find out....

23 comments:

  1. Saw where SECU was going to offer a $5K loan to members to assist with flood related issues. At what rate(s) I wonder? Tiered priced rates or one rate for all affected MEMBERS? Stay tuned.

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  2. Just called and got an answer as to the rate one would receive on the $5K flood assistance loan. Tiered pricing depending on your credit scoring! Talk about adding insult to injury!

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    1. and, the new unsecured loan trade line, even paid current will drop people's scores in the immediate. 5,000 isn't much, so now if members have to use credit cards, higher utilization will drag their score down too.

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  3. Takes yet another disaster to clarify the distain of this board for the working man and woman in North Carolina.

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  4. The SECU Board is a a disaster for the whole state of North Carolina

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    1. hoping for some disaster relief on Tuesday

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  5. Great post. If there was ever the opportunity for the current CEO and Board to save face and end RBL this is it.

    What better time than now, when so many folks in western North Carolina are suffering to obtain the basics, to even stay alive in some cases. Continuing with this discriminatory practice only makes it appear SECU is profiting from others' disaster when they need us the most.

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  6. Wow! Great post that truly shows the disastrous choice to move to RBL. RBL will cause these survivors to literally pay the price for seven years. The dissolution of the loan review committee was disgusting.

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  7. The SECU incumbent Board and CEO believe in "kick 'em when they're down, kick 'em all around" philosophy. After all "Where else are the members going to go? It's still the best deal..." People helping people and Do the right thing?

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    1. secu board are risk based losers. let the members eat cake

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  8. you would think RBL would be made illegal by your folks in DC .... but then again they would have to "Do the Right Thing" and too much money is being made to really help their constituents!

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    1. that is why we at SECU need to get rid of RBL because the overseeers of the financial industry only look out for themselves ... we need to look out for our member/owners!

      * 4 more in 24 *

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  9. In my opinion, the people in charge are not doing anything to fix the delinquency issue because they need a reason to support Risk based lending. Why else would they do nothing about it???

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  10. "It's The Final Countdown!"

    * 4 more in 24 *

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  11. Will the issue of back office not treating branch/mss staff as their member (since they refuse to talk to members) finally change?

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  12. Praying for a new 4 tomorrow!

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  13. E-mail came out this morning to all SECU employees stating how tomorrow’s annual meeting will have let more members voices heard than ever before. Disgusting that they would put this out considering the fact that members aren’t even allowed to speak at the annual meeting. I can’t attend, but kind of hoping someone can get the crowd going with “Let us speak, let us speak, let us speak!” I’m really hoping tomorrow’s the day when SECU can get back to its roots and core values and when the madness can stop.

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  14. Return the Credit union back to the original owners, the members!!! Let our silent voice be heard ...

    show 4 more the door!

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  15. Today’s the day 4 more in 24! Next year is kick the last of them to the curb 25

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  16. I decide today if I am updating my resume or not.

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