Educators Credit Union shares how one loan officer looked at the numbers to change the life of a member.
I occasionally receive emails from credit union leaders or representatives telling me about an initiative or action that defines the credit union movement. Off the CUff readers always respond positively to such posts, encouraging the system to uphold its cooperative vales.
Here is a member story from Linda B. Hoover, SVP of lending at Educators Credit Union ($1.3B, Racine, WI):
"One of our representatives had a distraught member come into the office for her advice. The member, a single dad who had recently joined the credit union, had a history of using the services of payday lenders and now wasn’t able to pay his other debts. Our member financial representative (MFR) sat down with the member and looked at his credit history. The member had an automobile loan with Wells Fargo that had an interest rate of 19.6%. He also had a couple of credit cards with interest rates of 22.9% and 26.99%.
"The MFR worked with the member to tally everything he owed to the payday lenders, Wells Fargo, and the high-interest credit card providers. The MFR was able to use the equity from the automobile and combine all of the member’s debts into one auto loan with an interest rate of 5.95%. The new arrangement reduced the member’s monthly payments by more than $680 and will save him a total of $13,988.57 in interest. He will also be able pay off his debts in three years."
Hoover is happy to report the member is now out of the payday lender cycle. He’s done with high-rate credit cards. He has only one debt — the auto loan — and one low-limit credit card with a rate of 8.9%. And who provides that credit card? Educators Credit Union.
Keep sending your testimonials to email@example.com.
Read Other Member Stories
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Credit Unions' Modern Role
Go Above and Beyond
Member Service … And Then Some
Small Gestures Make Big Differences
Originally published April 20, 2011.