Underserved = Underfunded and Other Words of Wisdom
Published August 14, 2015 3:51 PM
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Updated June 1, 2021 1:22 PM
1 Min Read
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<p><a href="http://www.cujournal.com/news/opinions/serving-underserved-calls-for-new-options-1024824-1.html"><strong>Serving Underserved Calls for New Options</strong></a></p>
Underserved are usually underfunded. A secured credit card requires funds to secure the balance, something lacking in this group. We chose to start with a short-term, unsecured loan with an attached savings function. Then the member can build up the amount for a secured Visa, or give the person an unsecured Visa after showing a sufficient payment history. Our program goes from payday alternative (with a mandatory savings function), to a signature line of credit ($ and # advance restrictions apply), to an unsecured Visaall without ever running a credit report.
Note: All members can have a fully underwritten loan with an accompanying credit report any time they want. It's not like we are forcing anyone into this program. Our goal is to move more of our "payday" members into full service members. Most payday programs don't take the member to a better financial position. Ours does.
Unsecured has worked for us. I hope your program does the same for your members. We're all just trying to be a better CU for our members.
Posted by gdstockdale Monday, August 10 2015 at 9:31AM ET
<p><a href="http://www.cujournal.com/news/compliance/warren-pushes-ban-on-credit-reports-in-job-screenings-1024810-1.html"><strong>Warren Pushes Ban on Credit Reports in Job Screenings</strong></a></p>
Let's see, you'll be handling cash (opportunity), and you're behind on your bills (need), so we should turn a blind eye to this OBVIOUSLY PREVENTABLE DEBACLE by not checking you out? Is that right? Only someone who never in their entire lives had to work for a living would come up with something so stupid!!!!!
Hello! Reality checking in!!!! Anyone home?
Posted by gdstockdale Friday, August 07 2015 at 4:20PM ET
<p><strong><a href="http://www.cujournal.com/news/compliance/mbl-rule-is-about-shifting-power-from-ncua-to-cus-metsger-1024814-1.html">MBL Rule Is About Shifting Power from NCUA to CUs: Metsger</a></strong></p>
Credit Unions were founded to loan money to MEMBERS and not to invest in a piece of a strip mall loan or a large rental complex.
Posted by timb Friday, August 07 2015 at 11:04AM ET
<p><strong><a href="http://www.cujournal.com/gallery/from-nuptials-to-nose-jobs-marketplace-lendings-odd-niches-1024632-1.html">From Nuptials to Nose Jobs: Marketplace Lending's Odd Niches</a></strong></p>
It's great to see the Credit Union Journal calling this out. Credit unions can offer better rates and terms than most of these new entrants. However, if credit unions do not take notice, they will quickly lose market-share. Lending Club posted nearly $2 BILLION in unsecured personal loans in Q2 2015. Wow.
Posted by Brian H Wednesday, August 05 2015 at 4:44PM ET
<p><strong><a href="http://www.cujournal.com/gallery/10-data-security-lessons-of-2015-1024804-1.html">10 Data Security Lessons of 2015</a></strong></p>
You had me at "Data Doesn't Disappear."
This is a terrific synopsis, well-presented of the scope of the threats faced in the digital age.
Posted by 1brucejolly Wednesday, August 05 2015 at 11:21AM ET
