Transcript

Money Monday · Chuck Douglas

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Speaker 1: We're in the Monday, We're in the money. We've got
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Speaker 1: it on on what of cakes to get it on.
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Speaker 2: The first Monday of the month, of course, is a
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Speaker 2: money Monday in studio with me right now, Greg Kidwell,
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Speaker 2: who is a presidente the president at Pathway's Financial credit Union,
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Speaker 2: right in the big Guns, because there's so much to
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Speaker 2: talk about right now, so many things going on, and
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Speaker 2: I know one of the things that's been on your
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Speaker 2: mind is the Trump talk about credit card interest which
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Speaker 2: on the surface sounds really good. However, if you delve
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Speaker 2: into things, rarely do they sound as good as they
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Speaker 2: do on the surface. Absolutely, this is not a good idea.
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Speaker 2: I mean, I think most peak thinking people realize you
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Speaker 2: can't artificially control something like an interest rate on a
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Speaker 2: private entities credit card.
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Speaker 1: No, that's correct. You know, price controls really never really
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Speaker 1: have had a history of working in throughout the time
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Speaker 1: of the United States in our great country. Now, you know,
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Speaker 1: one of the problems you have when you have something
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Speaker 1: like a ten percent interest rate cap on credit cards
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Speaker 1: is that sounds great. What could go wrong? Well, what
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Speaker 1: could go wrong is the fallout from that could be
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Speaker 1: that maybe a third of America's consumers no longer have
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Speaker 1: access to credit cards because their rates get cut or
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Speaker 1: the credit line gets eliminated altogether. Credit card is not
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Speaker 1: a big money making product for financialations historically, and the
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Speaker 1: reason for that is because it's an unsecured loan. Essentially,
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Speaker 1: there's no collateral behind it. So when you get a
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Speaker 1: credit card from a credit union, from a bank, that's
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Speaker 1: being underwritten basically on your on your credit score and
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Speaker 1: your your ability to repay. And if you know, if
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Speaker 1: you have marginal credit or if you struggle, you know
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Speaker 1: you're going to have a higher interest rate. Generally. Even
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Speaker 1: at Pathways, our lowest rate on our credit card, and
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Speaker 1: we pride ourselves on being a low cost financial services provider,
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Speaker 1: is eleven point four to nine percent. So you know,
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Speaker 1: if we have to cut interest rates down to the
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Speaker 1: point where ten percent is the highest rate you can
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Speaker 1: charge on a credit card by the time you factor
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Speaker 1: in the operating costs, the fraud which is a big deal,
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Speaker 1: and we could have a whole separate conversation about fraud someday. Shuck.
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Speaker 1: But you know, we're not hardly making any money on
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Speaker 1: a credit card at all to begin with. And you know,
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Speaker 1: even though we're not for profit financial institution. Our job
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Speaker 1: is to maximize our return to our members as we operate,
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Speaker 1: so we can't operate as a loss leader. So, as
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Speaker 1: you said, what would happen is credit lines are going
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Speaker 1: to get cut. Credit lines are going to get do
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Speaker 1: at the end of the day. The tragic part of
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Speaker 1: this is the only people who are going to be
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Speaker 1: able to have a credit card are the people that
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Speaker 1: don't need them. People that need them for occasional emergencies
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Speaker 1: or even occasionally every day necessities, they'll no longer have
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Speaker 1: access to it.
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Speaker 2: Yeah, if your financial institution, bank or credit union, it
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Speaker 2: doesn't matter if they are at a position where they
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Speaker 2: can't make any more than ten percent on a card.
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Speaker 2: Even if you have, you know, just the worst possible
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Speaker 2: credit just ten percents all they can charge you, They're
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Speaker 2: going to say, you know what, no, you can't have
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Speaker 2: a credit card. That doesn't necessarily help people when they
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Speaker 2: start getting denied, or when you've got you know, a
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Speaker 2: five thousand dollars limit and well now we can only
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Speaker 2: charge ten percent. We're going to have to drop your
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Speaker 2: limit down to twenty five hundred dollars. That doesn't help people.
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Speaker 2: All of these things can happen when you've got this
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Speaker 2: artificial control. And you know, bless the president's hard for
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Speaker 2: trying to make things better. I just think he's going,
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Speaker 2: as they say, bass akwords on this one, and as
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Speaker 2: you and I were talking off the air, much more
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Speaker 2: practical way to help people do something like this, if
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Speaker 2: you really want to do it, is to allow them
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Speaker 2: to deduct at least in part their credit card interest,
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Speaker 2: which we used to be able to do. They would
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Speaker 2: that to what the eighties I think somewhere maybe during
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Speaker 2: the Reagan administration that was taken away from us. Yes,
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Speaker 2: but you used to be able to deduct credit card
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Speaker 2: interest from your taxes. That is much more of a
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Speaker 2: role of government as far as I'm concerned than forcing
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Speaker 2: private entities to you know, you can only make this
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Speaker 2: much money. It's just that's very Unamerican, quite honestly.
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Speaker 1: Absolutely, And you have to think about access over optics.
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Speaker 1: I mean, when you look at restrictions that are intended
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Speaker 1: to improve affordability, what really often happens is it reduces
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Speaker 1: access for those people that need credit the most at
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Speaker 1: a time when they need it the most.
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Speaker 2: Now this is at this point, is that still an
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Speaker 2: idea is it still just something they're floating. Is there
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Speaker 2: anything going on politically that we need to be watching?
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Speaker 1: Well, I think you know where it started was that
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Speaker 1: the President talked about doing an executive order on it.
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Speaker 1: Then later on he pivoted toward asking Congress to do it.
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Speaker 1: And there are there is legislation that's floating in Congress,
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Speaker 1: you know, looking for a cap I've heard anywhere from
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Speaker 1: one year up to five years of a ten percent
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Speaker 1: interest rate on credit cards hasn't found a home in
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Speaker 1: the form of a standalone bill or an amendment to
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Speaker 1: an existing bill that's going through Congress yet. But you know,
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Speaker 1: we're just trying to educate people that, well it sounds
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Speaker 1: great on the surface, the unintended consequences are just not good.
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Speaker 1: And I even heard on your station a couple of
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Speaker 1: days ago from wallet hub that almost twenty percent of
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Speaker 1: Ohio credit card accounts were delinquent in the second quarter
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Speaker 1: of twenty twenty, right, and that was a that's a
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Speaker 1: twenty nine percent increase from the prior year. So people
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Speaker 1: aren't having problems with affordability. And you know, what we
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Speaker 1: encourage people to do is to visit their local credit union,
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Speaker 1: visit pathways, we have certified financial coaches on our staff
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Speaker 1: that can help people manage their debt and find ways
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Speaker 1: to start to pay their debt down.
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Speaker 2: I wanted to bring this up because this is again,
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Speaker 2: this is a wonderful service. I mean, if you want
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Speaker 2: to get a credit card, if you want to get
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Speaker 2: a car load, if you want to get a home
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Speaker 2: mortgage and you're not in shape to do it, this
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Speaker 2: is something Pathways does. Another reason, it's great to be
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Speaker 2: a member of the family man, you can go in
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Speaker 2: and sit down with someone who will actually show you
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Speaker 2: the route to get from where you are to where
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Speaker 2: you need to be. That's a beautiful, wonderful thing.
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Speaker 1: That's correct. That's correct. It's it's not a band aid approach.
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Speaker 1: It's a holistic approach.
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Speaker 2: And it's something that is ongoing. It's not a limited
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Speaker 2: time offer or anything like that, which, as you just
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Speaker 2: said about this, this idea of lowering credit card rates
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Speaker 2: from DC one year, maybe five years, anything that has
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Speaker 2: a time limit on it like that is generally a
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Speaker 2: bad idea as well, because it's for show. It's not
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Speaker 2: for change.
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Speaker 1: Correct. Correct, It's again it's all about for us. It's
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Speaker 1: access over optics. You know, we serve people in all
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Speaker 1: walks of life, and we're proud to do that, and
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Speaker 1: that's our mission. And we want to make sure that
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Speaker 1: we have open access to credit for everybody, and a
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Speaker 1: ten percent cap on credit card interest rates will do
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Speaker 1: exactly the opposite. It will restrict credit for people that
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Speaker 1: Edith the most.
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Speaker 2: This is a great kid. Well, by the way, he's
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Speaker 2: president at the Pathway's Financial Credit Union. Last time you
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Speaker 2: were in the studio, we were all hyped up and
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Speaker 2: talking about that CD. You want to update me on
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Speaker 2: that and you selling lots of CDs, lots of people
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Speaker 2: coming in there and get that's a great return.
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Speaker 1: Yes, yes, we still have our four percent annual percentage
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Speaker 1: yield CD available for ten months and that promotion is ongoing.
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Speaker 1: And we also have a new promotion that we're doing
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Speaker 1: right now for new and used vehicle loans as well
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Speaker 1: as four point three percent annual percentage trade.
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Speaker 2: So yes, this and that's new and used. And we
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Speaker 2: were joking through email this past week about the fact
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Speaker 2: that after getting through all this crappy weather, the number
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Speaker 2: of people dreaming about a four wheel drive is probably
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Speaker 2: pretty high right now in central Ohile.
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Speaker 1: So and driving that four wheel drive out of the
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Speaker 1: state into someplace warm for a little while.
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Speaker 2: And the empowerment part of this thing, too is that
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Speaker 2: you know, if you go to Pathways, you sit down,
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Speaker 2: you do your paperwork, you walk into a dealership with
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Speaker 2: the here, this is my pre approval on this car loan.
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Speaker 2: I know I got this, I know I'm okay. That
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Speaker 2: that makes the car buying process so much more pleasurable
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Speaker 2: for the buyer. You don't have to sit at a
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Speaker 2: desk in a dealership and worry about, Okay, are they
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Speaker 2: going to get me financed? And are they going to
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Speaker 2: send me out the four hundred and seventy two lenders
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Speaker 2: and my credit scores are going to go in the
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Speaker 2: toilet because everybody's checking me and that kind of stuff.
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Speaker 2: You go to Pathways, you get the approval and it's
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Speaker 2: a done deal. All you have to do is go
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Speaker 2: find the car. And that's that's got to give you
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Speaker 2: some pleasure seeing people walk out of there with that
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Speaker 2: kind of confidence.
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Speaker 1: Absolutely, I think that's the right way to go when
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Speaker 1: you buy a car. When you buy a car, go
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Speaker 1: to your credit and go to your financial institution first
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Speaker 1: and get pre approved. That way, you know exactly what
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Speaker 1: you're looking for in terms of price range, and then
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Speaker 1: you can start narrowing down your choices, you know, based
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Speaker 1: on that.
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Speaker 2: I'll tell you many many, many million years ago, when
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Speaker 2: I had to have a job, I ended up selling
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Speaker 2: cars for a while at a dealership. And I love
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Speaker 2: to tell this is the personal touch that again I
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Speaker 2: find it Pathways, that I enjoy so much. This guy
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Speaker 2: wanted to buy the car. Our finance manager at the
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Speaker 2: dealership send him, he said, he this is my bank.
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Speaker 2: I want to go to my bank. We sent the
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Speaker 2: application to his bank. He was denied. He said, give
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Speaker 2: it to me. He went to his branch, sat down
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Speaker 2: with the manager, came back two hours later with his
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Speaker 2: cashier's check. Because it was a small town branch of
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Speaker 2: a big bank, but they knew him. They knew him
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Speaker 2: as their member, as opposed to just sending his application
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Speaker 2: to some generic approval place. That's something else that you know.
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Speaker 2: I can't hammer that home enough. That's what you get
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Speaker 2: at Pathway's Financial Credit Union. You walk in, they know you,
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Speaker 2: and you know what's on a piece of paper doesn't
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Speaker 2: always determine everything. And that is a very very valuable
10:47
Speaker 2: tool in your toolbox of life. So another reason. I'm
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Speaker 2: just so happy to have you guys on board. Anything
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Speaker 2: else that's going on. We got the car loans, we
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Speaker 2: got the CDs, and we got the admonition about the
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Speaker 2: ten percent rates. Don't jump for joy yet. Anything else
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Speaker 2: you want to make sure we talk about while you're here.
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Speaker 1: I think just what you said that is a very
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Speaker 1: important point. Banking local is in banking with people that
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Speaker 1: know you and that you know, makes all the difference
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Speaker 1: in the world. Absolutely that way, you're not a number,
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Speaker 1: You're a person, and you know who you're dealing with.
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Speaker 2: Before we wrap up this edition of Money Monday, Kim
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Speaker 2: Venis is the vice president of marketing at Pathways. In
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Speaker 2: the studio, go ahead and do your legal stuff.
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Speaker 1: Kim.
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Speaker 3: Hey guys, Happy Money Monday. It's Kim from Pathways and
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Speaker 3: I've got a couple things going on right now that
11:37
Speaker 3: are actually kind of amazing. First, we're running a radio
11:41
Speaker 3: only share certificate special and just to translate, that is
11:45
Speaker 3: what most people know as ACD And because we love
11:48
Speaker 3: supporting local radio and our WTVN listeners, this one's just
11:52
Speaker 3: for you guys. It's a ten month CD earning four
11:55
Speaker 3: percent apy available on balances from five hundred up to
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Speaker 3: two hundred fifty thousand. It's for new money only, meaning
12:02
Speaker 3: that money is not already on deposit at Pathways, and
12:05
Speaker 3: we're running it until we hit our goal. Second, if
12:09
Speaker 3: you're tired of sliding around on the snow covered roads
12:12
Speaker 3: like I am, we actually might be able to help
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Speaker 3: you with that too. We're offering auto loan rates as
12:17
Speaker 3: low as four point three percent APR on twenty twenty three,
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Speaker 3: and newer vehicles for terms up to forty eight months.
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Speaker 3: It's going to work whether you're buying something new or
12:26
Speaker 3: refinancing what you already have. That auto loan promotion runs
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Speaker 3: February first through March thirty. First, just make sure you
12:33
Speaker 3: use the promo code four for four and now, because
12:37
Speaker 3: I know someone's listening with a clipboard, here comes the
12:39
Speaker 3: fine print. Both offers are subject to terms and conditions.
12:43
Speaker 3: Rates may change. Auto loan rates depend on credit and underwriting,
12:47
Speaker 3: and all loans are subject to approval. Learn more at
12:49
Speaker 3: pathwaycu dot com or stop buy a Pathways Financial Credit
12:53
Speaker 3: Union branch. And yes, we are federally insured by the NCUA.