WEST PALM BEACH, Fla.-Though credit unions are currently being haunted by corporate failures, growing CU losses and assessments, this Halloween season Credit Union Journal asked credit union executives to put those ghouls behind them for a moment to share some more typical horror stories.
Below is some of what readers have shared.
Alarming Auto Dealers
Here's a horror story that may not be making national headlines, but is with one Midwest CEO who is fighting unscrupulous car dealers. "Indirect auto lending is hurting small credit unions," the CEO related. "We have to play in that arena, but when those loans go bad, it's a greater impact to the small CU. Indirect lending is a reason some small credit unions are going under."
Spooky Special Offers
It's frightening, lately, how car dealers will aggressively battle credit union special pricing, one CU executive suggested. "We are losing loans to dealers because they go to our website, see what out rate is, and beat it," said a CEO frustrated with cutting the CU's auto loan rates. "Our information is used against us."
Disturbing 'Deposits'
Two "deposits" by a couple of unknown members topped one credit union's list of horror stories this year. A reluctant CEO shared that the CU had to clean up feces twice in September. "That's not a nice Halloween prank," he said. Here's hoping no one tries to one-up those members as Halloween nears.
Haunted Households
A while back a terrified CEO said, "Pinch me. Am I awake? This has got to be a nightmare," when he learned that 21% of his CU's membership had household incomes of $15,000 or less. The credit union has since improved the ratio.
A Very Scary Month
One tired CEO shared his personal horror story about a horrible September: "The regulator arrived on September 1, and September 8 my internal auditor came in for two weeks. On the 19th the board met, and on the 22nd my call report was due."
