...Esse Quam Videri.
😎 "To Fee, Rather than to Seem?"
The "We Are SECU Board" remains stubbornly dug in on costly policy making for the member-owners. And, with its head buried in the sand, the "We Are Board" keeps missing the obvious. The financial world is changing, moving ahead rapidly - especially in the area of consumer protection. But, bless their hearts, the "We Are's" keep missing the yacht, e-r-r boat!
In a recent post [link to post], we looked at the fact that SECU remains one of the few large financial institutions still charging an NSF fee on checking accounts. That missed opportunity to drop the fee cost SECU members $25 million last year. Added to non-market savings rates; discriminatory, excessive rates on loans; and rising concerns over service quality; " the We Are's" seem hell-bent in a drive toward irrelevancy. Remind me, why should one become a member? What's the "business case"? What's the "purpose"?
Now comes the "Credit Card Late Fee" poke-in-the-eye. Within the last 2 years, SECU has jacked up the credit card late fee to $20 bucks a pop! No discussion, no explanation, no justification. Guess the thinking is, if the member is late or just forgot, a $20 slap in the face will straighten 'em up! And, if they're struggling this month to pay, adding $20 to their burden is the best help and financial advice SECU can offer. Proud of that type of thinking?
✅ Here's what the real world is thinking: [Forbes 3/8/24] - "In a move that’s expected to save Americans $10 billion annually, the Consumer Finance Protection Bureau (CFPB) is capping credit card late fees at $8 per occurrence. This represents approximately a 75% reduction from the current average fee of $32 and will save American families who have missed payment deadlines, on average, about $220 per year. The rule will take effect in early May."
"Households who miss payment deadlines, even by a single day, will appreciate that late fees are more affordable now. The new rule keeps costs at a more reasonable $8, allowing more of payments to be applied to credit card balances rather than extortionate fees."
✅ SECU doesn't fall within the group of very large credit card issuers - those with over a million+ cards issued - to which the rule initially applies, so SECU isn't required to reduce its credit card late fee - yet!
Wanna bet what the "We Are SECU Board" will do?
😎 What would you do?
... maybe, "Do The Right Thing"?
