Taking advantage of a need and the season, a few years ago, the $961 million Cheyenne, Wyo.-based Blue Federal Credit Union introduced a holiday loan program that worked almost too well.

The terms required no credit check, membership for at least 90 days, a $1,200 maximum and a 12-month term. “We greatly underestimated the popularity of this product,” Blue FCU COO Andrew Shaw, said. “Members loved it, but it soon became an operational nightmare for us.”

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Roy Urrico

Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).

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