"We're SECU!"
- Too impersonal - SECU members are treated as canon-fodder with little room for exceptions, nor for mercy - not what a credit union is about.
- There is no appeals process.
- Credit score lending is based on a false statistical model - correct at the "macro theory level", but unfair and abusive at the individual SECU member level.
- Pricing "for risk" substantially overcharges the vast majority of SECU members in the higher risk tiers, the majority of whom faithfully repay their SECU loans - always have!
- Risk-based pricing is an unnecessary subsidy for more affluent SECU members, who are also unnecessarily penalized by SECU's low savings rates.
- Charging regular SECU members higher loan rates - unjustly - increases the risk of loan default, discriminates on the base of age, race and gender, and has severely tarnished the reputation of SECU,
The threat which is now waiting to bite SECU - as a risk-based lender - on an indelicate
part of its anatomy, is the concept of "disparate impact". Disparate impact is anything a lender does which unfairly discriminates against a "class" of borrowers - like "tiered" SECU members! Whether intentional or not, if the lender - read SECU - is shown to have adversely penalized a class of borrowers; lawyers are going to make SECU cough up a whole lot of cash to make amends.
😎 How do you know SECU is intentionally or unintentionally discriminating with RBL? Because the SECU Board and CEO just publicly confessed! How so?
Well, SECU has now admitted that the 5-tier RBL system installed in 2023 did not work and overcharged SECU members.
So now, "The We" have come up with the "new, improved" less unfair and less discriminatory 3-tier system!!
..."less unfair and less discriminatory"?... time to get out the snafu checkbook - once again?
