I would like to get anyone’s opinion that they care to share! Here’s the scenario. What if the credit union that you work at has had an indirect lending program for more than 10 years, you had spent a lot of blood sweat and tears to make it successful, you found out that a large CUSO from a town over 2hrs. away had partnered with a smaller credit union within your field of membership? How would you feel when they went around to “your” dealerships slamming your program? I would really appreciate your thoughts since it is not “what if” for me!
September 3, 2007
September 4, 2007 at 10:31 am
Sounds like they’ve seen the success you’re having in that market and want a piece of the action! It’s pretty low that they’d go around and slam your program. But, that’s life, so now it sounds like it might be time to start visiting dealers and repairing some of the relationships. Find a way to make them pick your CU over the incoming competition. Up the dealer reserve, let them sell mbp for you and offer a cut, monkey with your rates, take ‘em out to dinner….
September 4, 2007 at 11:16 am
Exactly my original thoughts….. BUT the CUSO has a clause in their contract with the dealership that excludes the dealership from doing any indirect loans with any other credit union program, and while the CUSO was quick to tell how they were better than us they did not disclose the exclusionary clause to any of the dealerships that they visited. I guess I am mad b/c I would never expect this type of behavior from a credit union, but then again I guess a CUSO is not a credit union (my point for writing this post!!!)!
September 5, 2007 at 8:40 am
Travis, I am aware of the CUSO you are speaking in regards too. I would visit with your dealers and ask them what you could do to continue to capture their business. You will either find out that they are more than happy with you or that there are some areas for improvement. Both are good scenarios for you. Additionally, I would find out more about the CUSO’s funding process. This is typically a very weak area for CUSO’s. Often the funding of deals is slow, akward, or clumsy. I would continue to do what you are doing.
Additionally, maybe its worth approaching the local CU to let them know that the CUSO reps are doing business in a manner that portrays the CU in a different light from which they are trying to communicate to their members…I have always found it of value to go straight to the source.
September 5, 2007 at 4:25 pm
My conversations with the dealerships has led me to believe that none of them will sign on with this CUSO, but my concern is that if one of them had not taken the time to call me about the exclusionary clause…I could have lost more than one due to their methods (and contract). My initial reaction was (like most Americans) “BRING IT ON!” I love competition and I can deliver personal service that blows all of the other lenders in my area out of the water, BUT to me there is a BIG difference in someone coming to play in my backyard and someone kicking me out of my backyard!