Pittsford FCU Featured Online

Recently, Pittsford FCU was approached by Matt Walker of CardRates.com to learn more about the Credit Union and its differentiating factors. After a conversation with Pittsford FCU General Manager Brian Scudder, Matt decided that he wanted to spread the word regarding the Credit Union’s unique outlook on products and member service.

The following is an excerpt from the article Matt Walker wrote. For the full article, please visit: PittsfordFCU.org/Feature.

Pittsford Federal Credit Union Offers a Unique Take on Loans and Keeps Member Needs in Focus

The Credit Union’s Approach to Lending Sets It Apart from Many of Its Peers

One of the characteristics of Pittsford Federal Credit Union that caught our attention was its approach to lending. While credit unions tend to offer lower rates and fewer fees than their bank counterparts, Pittsford FCU goes a step further.

“If you look at our call report, you’ll see our fee income is very low against our peers. Our net loan yield is low, which means we charge our members less on loans,” [General Manager, Brian] Scudder said. “Our cost of funds is high, which means we pay our depositors more.”

In fact, the credit union’s fee income is about one-third or less than what many of its peers see, Scudder explained.

“So we’re just a little bit different in that regard, we don’t have risk-based pricing,” Scudder said. “With all of our loans, if you can be approved that day, everybody gets the same rate that day whether your score is 510, or 810. We just don’t believe that our evidence suggests that we can charge someone more just because of their credit score.”

And the institution’s charge-off ratio is one-tenth of charge-off ratios seen in peer institutions, Scudder said.

“There are a whole bunch of things we do that we think are different, like collections reports to me. Lending reports to me, and I have a direct conduit to both,” he said. “Our collections process is not the typical ‘you get a percentage of what you collect.’”

Instead, the credit union takes a more human approach when it comes to members who are having trouble paying their loans.

“We call them and see if they’ll talk to us. We ask, ‘Is everything ok? Do you have food? Do you have the heat on? How’s your medicine? Now, let’s talk about worrying about your loans,’” Scudder said. “We get that mindset change from ‘We’re going to attack you until you give us money,’ to ‘We are actually here to help you.’”

This more caring and tactful approach pays off in the end. Not only do many Pittsford Federal Credit Union members stay for life, but they don’t forget the ways in which the credit union helped them.

“It creates situations where people five years after their loan has been charged off and long forgotten are able to walk in with a check and say, ‘Thank you. You helped me when I needed it most. I couldn’t pay you until now, but here’s your money back,’” Scudder said. “And that’s the kind of environment we like to create.”