The prospect of big loan demand from state employees resulting from Illinois' current budget crisis has one credit union prepared with revised procedures "so we don't waste a lot of staff time with inactive accounts."
"Two years ago when this happened we were inundated with 1,000 applications but 20% were never activated," explained Paul Simons, president/CEO of the $575 million Credit Union 1, a Rantoul-based CU with a large number of state employees as members.
Under the new rules on special low-rate loans, non-member apps will be turned away, said Simons noting also that employees must have direct deposit, payroll and have a minimum 600 credit score.
Credit Union 1 is also imposing a $2.5 million cap on the loans, said Simons. "We simply made our whole program wide open last time around and we've learned our lesson."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
