"And just think. All these people stranded in the mountains with no mail service and no internet service and 100 other problems are probably going to miss a payment or two. Whoops! Now they’re in the bottom credit score tier for the next 7 years."
✅ Really bad things happen to really good people... including all SECU members. The SECU Board - in its elite wisdom - however doesn't want to hear about it. You are your credit score and with RBL "We" will penalize you with higher interest rates on your loans.
✅ After 85 years of highly successful results, the SECU Board in 2021 dispensed with the statewide member loan review committees at SECU. The Board evidently felt that volunteers had become a problem, a liability, and no longer understood the "complexities" of a modern day credit union. After all, what does a member-volunteer know about loans anyway? There was no consultation with the members of the committees, no discussion with the SECU membership; the "We Are SECU" crew simply pulled yet another "We Know Better Than You" move.
Credit committees and loan review committees have been a cornerstone of credit union principles and practices from "Day 1" - part of the original charter and bylaws of SECU, still a part of federal and state credit union laws. The idea behind a credit committee - a member-volunteer led loan review and appeals board - was sound and simple. Each member loan request deserved a thorough and fair review by the credit union - who could argue with that idea? Our real flesh-and-blood neighbors and co-workers are at the heart of every loan request. The loan is important to the member; the member is not there asking, just for the fun of it.
The loan review committees were composed of local, member-volunteers, who were empowered to make the final decision on all SECU loans! Risky business? Not really, the volunteers knew whose money they were lending - theirs! As an appeals group, the loan review committees dealt only with the most difficult and exceptional loan decisions, generally involving families in severe financial crises. The meetings were difficult work, emotional, often heart-wrenching - and always very, very personal. Local member peers taking the time to listen to a fellow member always was an invaluable plus - building a unicorn takes time, requires trust, and caring.
✅ But, let me introduce you to David Spaugh, who served on a loan review committee for over 25 years. David was a rock, an anchor. He didn't prejudge; he wanted to hear the whole story; he wanted to make the best decision; but most importantly, he wanted to make the right decision.
David Spaugh said two things about his service on the loan review committee. David said: "Some people think we're here to give people a break, I think we're here to give people a chance!" He also once said he didn't feel he was serving the purpose of the Committee well. Asked why? David Spaugh said this: "I have a tendency to be overly compassionate."
Expert lenders know that a loan decision involves more than just "crunching the numbers"- amateurs (even when hiding behind an "SVP" title) don't. You can't listen to numbers. A credit committee gives members the chance to explain, to clarify, to be heard. A credit committee gives the credit union a chance to listen, to make sure the best loan decision... the right loan decision is made.
✅ Is there a downside to a second opinion, an open dialogue, a concerned discussion? A downside to caring too much about a member-owner, asking for help?
SECU members in western North Carolina are getting ready to find out....
