As you can see, the 3-tier RBL system is structurally unsound, lopsided at the top... and, over time, has a tendency to turn white.
😎 You really can't have your cake and eat it too.
Strike 1: One in five Americans (@ 20%) are penalized with higher loan rates or out right loan denials because they have no credit history. Young Americans, such as recent high school and college graduates just starting out in life, are the most harmed. These young people are considered by risk-based lenders to be "guilty (and penalized) until proven innocent", not exactly in line with our American approach to justice - which is, last time I checked, "innocent until proven guilty".
Strike 2: A recent national, independent survey found that over one-third (34%) of Americans' credit reports contained erroneous data. And, even more outrageous, the burden (time and costs) of correcting the errors falls on the American consumer - you and me.
Strike 3:
African Americans disproportionately (54%) have lower, poor, or no
credit score. Probably don't need to say anymore about that because we
all know America is "not there yet" on racial equality. RBL is a step
backward in time on social justice for SECU and its member-owners.
* Source: CNBC News (2022)
✅ Let's hope the SECU Board will step back up to the plate!
To err is human, ... to "Do the Right Thing" divine.
