Real Results of Credit Union Do-Gooding

It is not uncommon for someone dealing with a difficult financial situation to come to a credit union seeking help. On those days when work can be difficult, hopefully these stories will remind you why you do what you do for your credit union and your members. It’s people helping people.

Real people are at the end of the phone line or the other side of your website who need help, and while it may sometimes only feel transactional, helping someone with their financial situation is so much more than that. My credit union helped me out of jam when I was younger. Saved me a lot of money, but also a lot of stress and possibly my marriage. It’s never just about the money.

When operating in financial deserts and low-income areas, credit unions often have even more opportunity to truly change lives. CU Strategic Planning, a Community Development Financial Institutions consulting firm, hears these life-changing stories every day from its client credit unions.

Orange County’s Credit Union

“Somebody actually believes in me. You have no idea how important that was to me… to know that somebody believed in me.”

One middle-aged woman, who moved to Orange County, Calif. some years back, was struggling due to poor credit as a result of being victimized by identity theft. When she got her new apartment, the deposit she had to pay was 4x the normal amount!

She attempted several times to open a checking account at different banks, but she was unable to despite earning a decent living and explaining why her credit score was so low. Instead, she was forced to use a check cashing shop for her paychecks at a ludicrous fee. As she worked to rebuild her credit, she could only get a secured credit card with a 20% interest rate!

Eventually, she found help at Orange County’s Credit Union and was not only able to open a checking and savings account, but also she was approved for a much-needed car loan for $16,000. The credit union representatives listened to her story and gave her the loan, so she wouldn’t have to bike to work anymore.

The woman subsequently contacted Orange County’s CU to thank them. This was the last part of her message: “Somebody actually believes in me. You have no idea how important that was to me… to know that somebody believed in me.”

Sometimes, that’s all it takes. We treat the whole person when credit unions offer them that little bit of help they need.

We Florida Financial

“They all deserve commendation for the wonderful customer service they provided. Wonderful staff and great services are the reasons why I love this credit union.”

In another instance of credit troubles, a 52-year-old woman with a credit score of 655 was having trouble paying off her loans. She applied for a $5,000 unsecured holiday loan, but it was denied due to excessive obligations relative to her income. The credit union counter-offered for her to add a co-applicant to provide additional income to support the loan. During the back and forth with this member, she was approved for $10,000 so that she could consolidate this loan, plus four other unsecured loans and credit cards, into one payment. She refused, not wanting to close her credit cards.

We Florida Financial worked with her and ultimately approved a loan for $12,000 to pay off her car loan and all five unsecured loans, closing those accounts. One credit card remained open.

Not only did the credit union eliminate a lot of debt but her cash flow improved, her debt-to-income ratio dropped from 60% to 47%, and instead of being strapped for cash she now keeps an extra $500 per month of her income.

The member was thrilled and so thankful that she was able to get out from under the debt. She wrote a thank you to the credit union that read:

“I just want to let you know and give many thanks to your staff, and the underwriting staff that worked on my account. All these employees went above and beyond to help me. They were also very patient with me. I know this is their job, but they deserve more than just a thank you. They all deserve commendation for the wonderful customer service they provided. Wonderful staff and great services are the reasons why I love this credit union.”

El Paso Area Teachers FCU

Throughout the COVID-19 pandemic, credit unions have offered different kinds of financial assistance for members and small businesses, including PPP loans. El Paso Area Teachers FCU’s Yaisa Hallback worked with a small business owner who was struggling to get their PPP loan application filled out and submitted before the deadline passed. Hallback stayed on the phone with them, and when they were still struggling to get all the information to apply just a little before the deadline, she asked the business owner to forward all the information and proceeded to complete and submit the application in time for her.

NorthPark Community CU

A single mother was struggling to make payments on her auto loan after the pandemic caused her to lose her job. She turned to NorthPark Community CU in Indianapolis. The credit union helped her rework her budget and learned in the process that she’d been using her mother’s debit card to make her payments. The NorthPark Member Solutions team issued her a checking account while also coaching her on how to use it, including how to put the cash from her tips in the ATM so she wouldn’t be tempted to spend it. They even showed her were the closest ATM to the restaurant where she worked so she could deposit the money right after her shift.

Southern Security

“You’ve made a truly faithful member out of me today and I’m grateful beyond comprehension!”

Actual email to the Southern Security from a member:

Thank you guys so much! It means the world to have help in a time of need like this.

Here I was, stressing financially about how I am gonna pay this… and that while being quarantined and out of work for two weeks… but you guys stepped up to the plate and went above and beyond!

Thank you for treating me like family and truly caring about my wellbeing.

The world needs more businesses and banks like you all.

You’ve made a truly faithful member out of me today and I’m grateful beyond comprehension.

Stories like these prove how much credit unions can make a true difference in every day people’s lives! Remember your why.