How it Works:
- The Credit Union will define a list of pre-approved memberships, using soft-pull credit scores and / or our default query. Details of parameters below.
- The credit union will use CU*BASE tools to flood loan offers into the lending queue and It’s Me 247 for all accounts.
- When a member logs in to online or mobile banking, an offer will be presented in a way that makes it clear the loan is theirs for the taking, and that a simple click will open the account so they can immediately assess the available funds. Credit unions have the option for defined sales text will explain the account and terms to the member as part of making the offer (including links to a web page, PDF terms & conditions document, etc.).
- If the member says “no thanks” to the offer, then the application will simply be deleted from the queue, with no further action.
- If the member clicks to accept the loan, the credit card is opened immediately or they will be directed to the forms for signatures. The member will be directed either to the transfer wizard to make their first withdrawal, or to the account summary showing the new loan in their list of accounts.
- The app record status will be changed in the queue, showing which accounts need follow-up by credit union employees, printing forms, ordering the cards, etc.). Employees can use the electronic checklist as usual; when all tasks are complete the employee uses a “Mark Completed” command to remove the record from the special area and show it in the regular list of booked loans.
- Credit union staff member will order physical card.
Contact Lender*VP for assistance or gain access to tool #1340 to proceed if and when you are ready to begin making offers.
- Age 18 or older – age determined by CU
- Their membership has been open 180 days or longer – length of membership determined by CU
- We have a credit score available on the member, and their score is in a range or greater then X
- Exclude Members with Invalid Mailing Address
- Exclude memberships code as MO (organizational accounts)
- Exclude all members with a currently delinquent loan
- Exclude all members with a current or historical WO/CO loan
- Exclude deceased members
- Exclude members who are below $5.00 par in their 000, or any negative balance share – dollar value determined by CU
- Exclude members who already have an ONLINE credit card
- 1 per SSN
NOTE FOR CONSIDERATIONS REGARDING MLA
MLA grants a number of protections for active duty service people and imposes specific requirements on the credit union in granting credit. At the heart of the matter is the calculation of the Military Annual Rate (MAPR) and the disclosures required prior to or at the time of extension of credit. The act requires that a unique APR be calculated incorporating things such as fees and credit life or disability. The MAPR may not exceed 36%. CU*Answers published a document in November of 2016 outlining the nuances of this calculation along with a flow chart for lenders to use when granting credit to active duty personnel. Also, for credit cards there are additional statement disclosures including the calculation of MAPR in the event credit life and disability would increase the rate above 36%. CU*Answers does not support this disclosure and in 2016 recommended credit unions not include the sale of credit insurance products to active duty military personnel. One click credit cards does not allow the member to elect credit insurance products and it is not recommended that any type of application fee be assessed that may drive the MAPR above 36%.
The act also requires certain disclosures including the following. “Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an annual percentage rate of 36 percent.” This rate must include, as applicable to the credit transaction or account: The costs associated with credit including fees for ancillary products sold in connection with the credit transaction; any application fee charged (other than certain application fees for specified credit transactions or accounts); and any participation fee charged (other than certain participation fees for a credit card account). Oral disclosures are also required which can be done in person or by providing a toll free number where the disclosure is recorded. Such disclosures can be included either in the configuration of the sales messages or providing the member with a link where the disclosure and 1-800 number can be found. The member may not complete the offer without agreeing that such disclosures have been read.
In the event the credit union feels it may violate any of the above it is recommended that one click credit cards be offered only to those not in active duty. The active duty data element can be pulled with the consumers soft pull credit report and can be used to create the population of members you wish to make the offer too while excluding any individuals with a positive active military status on their credit report.