Harassing Mica won't eliminate predatory lending

Predatory lending is a new name for the ancient practice of ripping off those who can least afford it. It's the kind of nasty business that helped spawn credit unions in the first place. It is diametrically opposed to everything credit unions stand for. No credit union person feels more strongly about these self-evident truths and is working harder to rid it from the face of the earth than Jim Blaine, CEO of State Employees Credit Union in North Carolina. Blaine has taken on the elimination of predatory lending as a personal crusade on behalf of himself, his credit union, all credit unions, and every man, woman, and child who has been or could possibly be victimized by predatory lending. Over the years, Blaine's outspoken views, his credit union dedication, and his strong feelings regarding credit union philosophy have become well known. Also, because he manages one of the nation's most successful credit unions, at $6 billion plus, the second largest credit union in the country. Blaine has his own strong ideas on what a credit union should and shouldn't be-lots of branches, no indirect loans, an employee pay structure that keeps the staff's pay within striking distance of the CEO's, no frills, top-of-the-line member convenience, and an unwavering dedication to the financial needs of each and every member. This stamp-out-predatory-lending-at-all-costs crusader is also one of the smartest individuals ever to be involved with credit unions. The story is told that when he became irritated with CPAs talking their own mumble jumble, he decided to study and take the exam. He passed on his first try, becoming a CPA who could speak their language. It has even been rumored that if the lawyers bug him enough, he'll become one of them, too. Put all this together and it is easy to see why when Jim Blaine talks, credit union people listen. When he shouts long and loud, as he has been doing lately, about the evils of predatory lending, he especially gets the attention of credit union leaders. Blaine is on a one-man mission to get CUNA's Dan Mica to lead credit unions into battle to defeat and destroy predatory lending. His devotion to the cause has made him come across like a dog with a bone. He won't let go. Not for a moment. Therein lies the problem. Blaine doesn't know when to stop nagging, no, make that harassing, Mica, long enough to let the man do his job. Blaine has gone from pushing his worthy cause to attempting to micromanage CUNA, something that should be anathema to him as it is to all credit union CEOs. Mica knows how things get done in the association business. Blaine doesn't. Mica shouldn't tell Blaine how to manage his credit union. And he doesn't. Blaine shouldn't tell Mica how to manage a credit union trade association. But he is! Over and over and over again! Blaine has been bombarding Mica with a steady steam of videos, letters, and newspaper clippings and magazine articles, chastising him for not leading credit unions out of the predatory lending wilderness. They started out as thoughtful, serious, persuasive missives imploring Mica to make the elimination of predatory lending his number one (and maybe even his only?) priority. That's not the way it works in the big leagues of lobbying and legislative representation. As head of the largest credit union trade association, Mica has a lot of priority balls in the air. Predatory lending, as important as it is, is not the only thing on Mica's "to do" list on behalf of all credit unions. Blaine should know that. Instead, he continues to put unrelenting pressure on Mica, determined to get Mica to act the way Blaine thinks he should. Some of the latest faxes have been downright silly. One even went so far as to compare the Pope's recent plea for world-wide forgiveness for past sins of the most serious nature with a position Mica would find himself in if he doesn't jump through Blaine created hoops post haste. There is no question that Blaine's cause is a good one, and that it should be dealt with at every level of the credit union industry before an already serious predatory lending problem goes from bad to worse. But his methods do not justify the desired results. At one point Blaine said, "Add my vote of despair over CUNA's (Mica's) inattention to a movement-sponsored rule prohibiting predatory lending in credit unions. We seem to be all talk and no action." A "movement-sponsored rule?" Since when does the so-called credit union movement have the authority and power to promulgate rules for credit unions to follow? I think not! Would Blaine and his CU be as receptive to other "movement-sponsored rules?" Or would he prefer to manage his credit union according to policies set by his board? By the way, since Blaine is all over CUNA's back, perhaps he needs to be reminded that CUNA is not the movement, but only a part of it. For the record, CUNA is not "all talk and no action" as Blaine charges. Mica and CUNA are well aware of the importance of dealing with the abuses of predatory lending and are working diligently on the problem. Even if Blaine doesn't realize it, legislation is not created through harassment. Mica knows how the game is played and is solidly involved in possible legislative solutions. Anti-predatory lending legislation has already been introduced and CUNA is very much involved in it. No one should fault Blaine for his commitment to all things credit union. I certainly don't. But there comes a time in every battle when the front line troops need to leave the tactical decisions to the generals in charge. Meanwhile, Blaine needs to get on the backs of his CEO colleagues to make certain they are practicing what he is preaching. Comments? Call 1-800-345-9936, Ext. 15, or Fax 561-683-8514, or E-mail mwelch@cutimes.com.