Every day credit unions cause miracles to happen for members. You and I may not always see it from the recipient’s point of view. It may seem like just another transaction. But these events are miracles for persons often in extended circumstances and feeling without options or hope.
Following is a miracle story. It may seem small in the overall scheme of things, but it is everything to this member’s family.
Being Treated “Like a Human”
(Used with permission)
This story is about Corey who was assisted by our Financial Coach Ashley, who works at the Wilmington Member Center. While working the lobby on a busy Monday, Ashley met with Corey who had come into to talk about a car loan.
When they started talking about the loan details, Corey told Ashley that he was not even sure if this would be possible. He stated they had some life altering changes a while back and their credit took a major turn for the worse. He was not in desperate need of a new vehicle, but he wanted to try. Corey had been working on their family’s credit for a while and wanted to see where they stood.
Ashley encouraged the member, and after pulling his credit report she took a deep dive. The report showed his credit score of 536. (Note: this is a “below average” credit rating; the average American consumer has a 714 score.)
She recognized that Corey was hesitant to even talk about the credit score and that it was weighing on his mind.
She explained that if we have a reason “Why” behind what happened, that can give us the full picture. We are aware that “life happens.” She asked him to clarify what life changing circumstance occurred. Let us just say the member and their spouse were put though something we hope no one will ever have to go through.
While typing up her notes, Corey asked if she was putting the details of what happened in the loan file. Ashley realized that Corey had just re-lived a traumatic event in his life.
When they were finished with the application, Corey got up, shook Ashley’s hand and said thank you. Ashley replied, “No problem, it is what we are here for.” The member responded with, “No, thank you for treating me like a HUMAN.” Corey stated he had been to several banks and was just given a hard no. Without asking questions, without seeming like they care, they just saw a terrible credit score and not a person and valued member.
The next step was for Ashely to review the details and give the full picture of the situation to the underwriter. The next day Ashley learned the loan was approved. She was so excited to call Corey and share the great news. When Corey came into the member center for the loan closing, he gave Ashley a big hug and thanked her repeatedly. Ashley is now working on a share secured credit card to help him improve his credit even more!!
To quote Ashley, “This is one of the most genuine interactions I have ever had with a member. I will most definitely be their person at the credit union going forward!! Even when we learned a tough “why” as to what happened, we were able to serve with the best possible solution. “
This story represents the hope we provide through our caring financial partner-employees. I love that Ashley recognized bad things happen to good people. Congrats and thank you Ashley for demonstrating why we exist!
Some Financial Context
This midwestern credit union serves a market that largely lives paycheck to paycheck. In other parts of the CEO’s staff update, he reported on the increase in charge-offs this year:
For the year, we have expensed $52.3MM for credit losses which is $16.6MM more than we budgeted for the year and $26.8MM more than in the same period of 2023. Credit loss expense remains one of our primary concerns for the short and longer term. It is the #1 reason we are missing our net income target in 2024.
Even with this drag on financial results, the credit union reported loan growth of 8.3% and share growth of 8.8% or almost three times the national average at September 2024. ROA is .80% and networth 10.9%.
Most importantly, this increase in defaults did not stop employees from doing the right thing for members, especially those in financial difficulty.
Taking care of members, even those on the financial margins, is good business. And that’s how cooperatives make real miracles happen in people’s lives every day.