The North Carolina Credit Union Division: What's The "Hold Up"?

... Esse Quam Videri

To: Ms. Kristina Ray

Administrator, North Carolina Credit Union Division

Dear Ms. Ray,

Thank you for your March 6, 2024 response to our letter of February 29, 2024, requesting a copy of the complaint, which you filed on our behalf with SECU in August, 2023.

In response, you provided two informational letters dated July 11, 2023  and August 11, 2023 which we had sent to you. Thank you, but we already had those two letters.

We would again request a copy of the full complaint which you filed on our behalf - described by SECU as  "... the correspondence and other information (the "Complaint") you provided...". It seems reasonable to ask you for  a complete copy of  "our complaint".

This process is now in its ninth month, which seems excessive. We are also approaching an April 9, 2024 deadline for the next meeting of the North Carolina Credit Union Commission, without clear answers from you on these issues.

On September 1, 2023 you sent a letter acknowledging receipt of the August 28, 2023 response from SECU. In your letter you stated: "We are reviewing SECU's response as part of our investigation."

Ms. Ray, if you are unwilling to provide a complete copy of "our complaint", would you please provide us - and all SECU members - at least with the results and final determination of your investigation?  We can not find any record of your decision.

Ms. Ray, perhaps we should point out more clearly that "our complaint" was more about the Credit Union Division's lack of enforcement of the law, than any violation of the law by the Credit Union.

We remain convinced that the Administrator's required, statutory approval of all credit union bylaw amendments has not been properly upheld.  But, over the last nine months, we have not been able to get a firm answer from you on "our complaint" over this lapse in supervision.

We again ask and hope for your prompt, definitive response.

Sincerely,

Jean and Jim Blaine

March 11, 2024

 

SECU: First In NSF Fees! Now Credit Cards, Too? - "To Fee, Rather Than To Seem?"

  ...Esse Quam Videri.

😎 "To Fee, Rather than to Seem?"

    

The "We Are SECU Board" remains stubbornly dug in on costly policy making for the member-owners. And, with its head buried in the sand, the "We Are Board" keeps missing the obvious. The financial world is changing, moving ahead rapidly - especially in the area of consumer protection. But, bless their hearts, the "We Are's" keep missing the yacht, e-r-r boat!

In a recent post [link to post], we looked at the fact that SECU remains one of the few large financial institutions still charging an NSF fee on checking accounts. That missed opportunity to drop the fee cost SECU members $25 million last year. Added to non-market savings rates; discriminatory, excessive rates on loans; and rising concerns over service quality; " the We Are's" seem hell-bent in a drive toward irrelevancy. Remind me, why should one become a member? What's the "business case"? What's the "purpose"?

Now comes the "Credit Card Late Fee" poke-in-the-eye. Within the last 2 years, SECU has jacked up the credit card late fee to $20 bucks a pop! No discussion, no explanation, no justification. Guess the thinking is, if the member is late or just forgot, a $20 slap in the face will straighten 'em up! And, if they're struggling this month to pay, adding $20 to their burden is the best help and financial advice SECU can offer.  Proud of that type of thinking?

✅ Here's what the real world is thinking:  [Forbes 3/8/24] - "In a move that’s expected to save Americans $10 billion annually, the Consumer Finance Protection Bureau (CFPB) is capping credit card late fees at $8 per occurrence. This represents approximately a 75% reduction from the current average fee of $32 and will save American families who have missed payment deadlines, on average, about $220 per year. The rule will take effect in early May."

"Households who miss payment deadlines, even by a single day, will appreciate that late fees are more affordable now. The new rule keeps costs at a more reasonable $8, allowing more of payments to be applied to credit card balances rather than extortionate fees."  

✅ SECU doesn't fall within the group of very large credit card issuers - those with over a million+ cards issued - to which the rule initially applies, so SECU isn't required to reduce its credit card late fee - yet!

Wanna bet what the "We Are SECU Board" will do?

😎 What would you do?

 

... maybe, "Do The Right Thing"?