The SECU Legacy Board Appears To Have "An Attitude Problem"...

   

... discrimination in risk-based lending at SECU.

The #1 reason for the ouster of all three incumbent directors at last year's SECU Annual Meeting  was the adoption of risk-based lending (RBL).  We've pointed out that RBL discriminates against the majority of SECU members on the base of race, age, and gender - since credit scores are on average notably lower for people of color, younger members, and for females. Take a look at the opinions on this discrimination by a few experts: [link] or [link] or [link] or [link]

But now, the "We Are SECU" Board has upped the unjustified discrimination ante further by imposing limitations on the borrowing opportunities for various credit score lending tiers (A,B,C,D,E) - despite already charging these folks higher interest rates to offset the alleged  higher loan risk. If you overcharge members once, guess there is no harm in penalizing them twice!

✅ Here take a look at this SECU limitation - insanely ridiculous! - policy [as of 3/11/2024]:

* Auto loans; E tier subject to these restrictions: 

 

1) 18k max loan and only on used cars (no new car financing).

2) 48 mo max term.

3) Rate 12.50 depending on score.

4) Nothing currently past due on credit report.

😎 Now slow down and think through that policy slowly: Can you think of any logical reason to make a used car loan up to $18 thousand to a member, but to refuse to allow that same member to finance an $18 thousand new car loan? Wouldn't a new car be more reliable for the member and less risky for the Credit Union?

 

Confirmation that "The We" may be clueless about lending risk - delinquency/charge offs are soaring -  and equally terrible, have "an attitude problem" against "certain segments" of the SECU membership?

 

... really, can't make this stuff up...who would believe it?