Tuesday, November 19, 2024

SECU: Credit Unions As An Employee Benefit

 https://assets.crowncommercial.gov.uk/wp-content/uploads/shutterstock_1732651994-scaled.jpg 

    ...  access to credit as an employee benefit?

No one questions that credit unions were created in the U.S. to provide access to credit for working men and women - particularly those of "modest means". Why? Because "back then" many payroll offices were confronted with regular, recurring employee requests for "a short term advance" prior to payday. Money is always in short supply for most folks - both "back then" and now.

Not helping an excellent employee in a time of need was "bad for business" and employee relations. Sending them to a loan shark was worse. "Payday lending" at rates usually exceeding 100+% - both "back then" and now - creates a death spiral of financial dependency for a consumer. Shackles not made of iron, but shackles just the same.

. ..." I owe my soul"... that can be a problem, ... beware.

Employers embraced "company credit unions" as an added benefit which could be used to assist and retain employees. Employers liked having an independent, employee-owned and led lender making the decisions on which employees qualified for loans - choices the employer did not want to make. Employers didn't want to be in the lending business, nor have to "advance" company funds. To help out, employers frequently provided back office support, payroll deduction, office space and assisted employee-member volunteer leadership of the credit union.

SECU, although a separate, independent organization, was "the company credit union" for North Carolina state government and the North Carolina school systems. The idea of a credit union as an important employee benefit caught on! 

Other N.C. companies also formed credit unions - R.J. Reynolds, AT&T, IBM, Champion Paper for their employees - as did many municipalities, local post offices, our military, and churches. At its peak, there were 360+ different credit unions in North Carolina, today just 60 remain. 

Is SECU still "the company credit union" for North Carolina state workers? What has changed?

  In order to know where you're going, it often helps to know where you have been.


6 comments:

  1. Thank you for doing this.

    ReplyDelete
    Replies
    1. Yeah great, but so what? You are still living in the past. Retire, shut up.

      Delete
    2. You have now felt the warm and fuzzy IT vibe

      Delete
  2. Not living in the past, but learning from our history and past generations. One could possibly understand good human qualities such as morality, integrity and empathy.

    ReplyDelete
  3. society has moved from people helping people to what's in it for me ....

    ReplyDelete
  4. "In order to know where you're going, it often helps to know where you have been."
    It not only helps, it's a requirement ... else you repeat the same mistakes

    ReplyDelete