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First Family FCU CEO Offers Tips for Growing Your Loan Portfolio this Holiday Season
Friday, November 15, 2013 6:50 AM

While a survey from the National Foundation for Credit Counseling finds that the majority of consumers will spend less this holiday season, and an Edward Jones study reveals much the same [with 37 percent of survey participants expressing that they in fact plan to spend less on holiday shopping in 2013 than they spent in 2012], a Discover Holiday Shopping Survey finds the opposite, with twice as many Americans saying they plan to increase their spending during the 2013 holiday season. Realizing that some members may reign in their spending this holiday season, David Dykes, Jr., president and CEO of First Family FCU says they are running a number of promotions to attract borrowers.  

“A holiday time tradition that First Family FCU offers is a Christmas loan special and a Christmas loan deferral program (Skip-A-Payment),” Dykes says.

According to Dykes, the Christmas loan is an unsecured loan with an interest rate of 6.96 percent and repayment terms of 18 months. Qualifying members can borrow up to $5,000.

“Our Christmas loan deferral program is a win-win situation for our members,” adds Dykes. “Members win by having some extra cash for the holiday season and the credit union wins with the loan staying on the credit unions balance sheet a little longer, which results in additional interest income and we generate non-interest income through the fee.”

Dykes explains that members pay the credit union a $25 fee to process their Christmas loan deferral. 

“We have offered the Christmas loan special and a Christmas loan deferral program for years,” notes Dykes. “Members start calling us in September to inquire if we are going to continue the tradition and when will we start offering the specials.”

Although the amount being borrowed on a consumer loan may drop during the holidays, Dykes says the actual number of consumer loans remains fairly even. The credit union’s Christmas loan tends to be the most popular loan during the holiday season.

Dykes offers the following five tips for growing your credit union’s loan portfolio this holiday season: 

  1. Provide Santa like customer service – not Grinch service
  2. Know what your type of loans your members want
  3. Process the loan in a timely fashion – members are busy this time of year also
  4. Develop your holiday loan special into a tradition
  5. Have fun with your members!