I was recently helping on the teller line when I had the opportunity to assist a Redwood Credit Union member, who was depositing a check that I thought looked a little suspicious. I asked additional questions to ensure it wasn’t fraudulent. In doing so, I discovered it was a loan proceeds check from Bank of America with 30% interest and a $75 fee.
I politely asked how soon she would need the funds and said I would love the chance to see what Redwood Credit Union could do for her before depositing the check. She stated that she didn’t need the money at the moment but wanted to have the funds on hand for emergencies. As I was reviewing her account, I saw she was pre-approved for a line of credit that was $3,000 more than what she had been approved for with a large bank.
I explained the benefits of accepting the line of credit offer over the personal loan. It took some time for her to see the difference between the two, so I was patient and let her know we only want the best option for her to thrive financially. After a 20-minute discussion, she agreed that the line of credit was the way to go. I helped process the pre-approval, gave her my business card, and said I would keep in touch.
The next morning, I had an email from her letting me know the loan had already been funded. She was super thankful I took the time to explain the differences, how she would benefit from one versus the other, and how it would save her a lot more money in the long run. I knew if I deposited the check without letting her know what options she had, I would not be living our service standard of demonstrating trust and respect by providing her with sincere recommendations for enhancing her financial wellbeing.
This story was submitted by an employee of Redwood Credit Union.
