Well, they can always eat cake...
The evidence has long been clear that risk-based lending (RBL) is discriminatory [link] on the basis of race, gender and age. The SECU Board leaped off this moral lending cliff in 2023 and has fallen in esteem and performance ever since.
✔ With the current government shutdown, once again we have positive proof that RBL is a bogus, destructive credit union lending practice. This time RBL practitioners are wrongfully throwing our military, our federal workers, various federal benefit recipients, and their families into a financial catastrophe not of their own making - but for which they will pay the price!
✅ Here read the letter from the Defense Credit Union Council, a leading national credit union advocacy group representing 40 million credit union members, on the effects on member credit scores of the federal government shutdown [link- entire letter]
✅ Or the CUDaily article on the shutdown problem [link]
😎 "Beyond the immediate strain of unpaid bills, the ripple effects on financial health are severe. Missed mortgage, loan, or credit card payments trigger late fees and "can inflict lasting harm on credit reports and scores".
"... In theory, no worker or service member has to suffer a credit score drop because of a shutdown. However, the reality is that not all affected individuals benefit from these voluntary measures. We cannot leave our service members’ financial security to ad-hoc charity or luck; they deserve dependable, systemic protections."
For years, highly responsible SECU members - and DCUC service members - have had their financial lives disrupted by unexpected events beyond their control - loss of job, severe illness or death in family [link], disabling car accidents, divorce, alcohol/drug/mental health issues, hurricanes/floods, and the list goes on.
In western North Carolina, the latest unpredictable, catastrophic event was Hurricane Helene [link], which financially ruined thousands of fine SECU members - an event not of their own making, but for which they will pay the price! That's real life, which RBL, the SECU Board, and elite management have chosen to callously ignore.
If credit unions want to fix this problem of obvious unfairness to all members, then a return to responsible, non-discriminatory lending is a must. Fix the real problem.
