Losing Streak, Park 2

CONTRADICTIONS

Priority One Credit Union has begun selling postage stamps. In a memorandum dated June 2, 2009, issued by AVP, Rodger Smock, disclosed that then newly hired COO, Beatrice Walker, would be introducing "new streams of income." Is the selling of postage stamps an example of one of her new streams of income? If so, what's next, a lemonade stand? 

At a time when the credit union requires well hones strategies that succeed in reaping large amounts of profit, the selling of stamps hardly seems consequential and it's certain, will have absolutely no impact on resolving the credit union's increasing inability to offset its monthly overhead.  

Beatrice Walker created solutions like those of President Charles R. Wiggington, Sr., tax members. Courtesy Pay, the credit union's version of overdraft protection, charges members a fee each time they inadvertently or intentionally use Courtesy Pay. The service has subjected increased numbers of members into collection proceedings. What's more, unethically, Ms. Walker had all member accounts coded for Courtesy Pay when she was supposed to "ask" if they wanted to enroll in Courtesy Pay. 

The President implemented E-Statements without first gauging members if they wanted the implementation of online account statements. The reason why members should have been asked, is because the majority of members are employees of the U.S. Postal Service. The postal service has reported a decline in the use of mail service which has in turn, forced the closure of facilities and laying-off of a large number of members. E-Statements will inarguably contribute to the decline in mail delivery service.  Having first asked members if they wanted to service would have demonstrated that the credit union cares about members who are also employees of the postal service. Evidently, under President Wiggington, members hold little importance and postal employees mean even little. 

OBSESSED WITH TITLES

In January, we noticed a comment posted by the South Pasadena Branch Manager, Gema Pleitez, on her Facebook page, announcing she had been promoted to the position of Assistant to the Assistant Vice President (AAVP). A few days later, the credit union posted a notice on the Intranet informing employees that Mrs. Pleitez had been promoted to the post of AAVP  and would be overseeing operations for the Riverside branch and the Call Center located at the main branch in South Pasadena, California. 

We don't understand how Mrs. Pleitez, who is assigned to the South Pasadena branch will oversee operation of the credit union's small and insignificant branch in far-off Riverside county. What is Mrs. Pleitez going to do to oversee operations of that branch when she physically located far from that branch? Mrs. Pleitez is also known for being lazy, often spending a great portion of her workday, playing on the Internet and purchasing products online and having her purchases delivered to the main branch. 

A week and a half ago, the credit union also announced the promotion of the Director of Project Management (whatever that means) to the post of Vice President of Support Services (whatever that means). 

As for Mrs. Boutte, don't expect her new, upgraded title to in anyway change what she currently does. We do know that in 2008, she was hired because at the time, the President believed that Associated Management Company, Inc., the credit union's collection agent was recuperating sufficient delinquent monies due to the credit union. He also disparaged the company's honesty which seems more than a tad hypocritical. Here is a copy of the June 17, 2008, letter handed to Associated Management Company, Inc.'s owner, Mike Lee, which advised him that his company's contract with the credit union would effectively end in May 2009. 

Mrs. Boutte was hired several weeks before Associated Management Company, Inc. vacated their offices at the South Pasadena branch. Mrs. Boutte was not only hired to help implement a less costly new in-house collections department but to reduce write-offs and increase the amount  of delinquent payments due the credit union. Thus far, Mrs. Boutte's achievements have been slow in being realized and delinquencies remain high. 

After her arrival on June 1, 2009, Beatrice Walker quickly forged a relationship with Mrs. Boutte and a few months later promoted Mrs. Boutte to Director of Project Management. 

We don't believe Mrs. Boutte's has fulfilled the President's vision of what he hoped an in-house collections department would achieve. What's more, she's proven to be a narcissist like the COO and President and wields an iron rod demanding subservience of all employees. 

Clearly, the fascination and obsession with titles continues to thrive under President Wiggington. The titles are actually empty and childish appointments that realistically mean absolutely nothing because the recipients of titles are mostly inept, self-serving louts who have more concern with their status than they do for the credit union's well-being.

RATINGS

As shown below, Bauer Financial financial assessment of Priority One Credit Union rated it two stars. So what do two stars indicates:

http://www.bauerfinancial.com/btc_ratings.asp.

Two stars is defined as "Problematic." That is one-star above "troubled" and only two tiers above ZERO. It's a low rating. 

Just to put things into perspective. On December 31, 2006, the day William E. Harris retired, the credit union was rated four-stars which assesses the credit union's overall performance as "Excellent." 

NOV/DEC 2010 FINANCIALS

ASSETS

November 2010

$103,039,647.00

December 2010

$103,644,634.00

LESS ALLOWANCE for LOSSES

November 2010

-$2,840,340.00

December 2010

-$3,817,664.00

NCUA DEPOSIT

  November 2010

$1,417,073.00

December 2010

$1,417,073.00

NOTES PAYABLE

November 2010

 $10,000,000

December 2010

 $10,000,000

SUPERVISORY COMMITTEE

EDUCATIONAL EXPENSES

YTD

-$2,153.00

TRAINING EXPENSE

November 2010

 898.00

December 2010

$2061.00\

YTD

$21,336.00

BUSINESS 

DEVELOPMENT

November 2010

 $0.00

December 2010

$0.00

YTD

$2,684.00

LEGAL 

EXPENSES

November 2010

$1823.00

December 2010

$11,109.00

YTD
$90,000.00

CONSULTANCY FEES
November 2010
$6700.00

December 2010
$7543.00

YTD
$168,820.00



LOSS/GAIN 
SALE OF LOANS
November
$0.00

December 
-$45,967.00


NET INCOME/OSS
November
$11,528.00

December
$85,358.00

YTD
-$563,830.00

PROMISES & ASSURANCES

Bauer Financial's assessment prompted us to revisit the credit union's 2009 Annual Report, inappropriately titled Reaching New Heights Together to review the statements made by some of the credit union's key officers. What they wrote is the best testament to their commitment to the credit union and to their integrity. Remember, the report was made public in May 2010 and also provides a forecast of the credit union's future performance. 

We also thought it appropriate to share the following comments posted by readers of this blog.

COMMENT 1

Anonymous said…..

"John

How do you know so much in regards to their complains? How did you get copies of the letters? Is way too much confidential information out there. It does make me wonder if my information is secure. I should be afraid to say or write anything at priority one and later have it publicized. We asked Darlene and Suzanne why were they leaving and Suzanna keep on saying the same thing over and over and she seemed sad though. Oh well they're gone! So John or blog[g]ers leave us employees alone stop the gossiping half of your story is or have been made up.

November 17, 2010 2:56 PM"

COMMENT 2

"Anonymous said...

Good morning Priority One people

I wish you all a Happy New Year!!

I hope this disappears by 2011. You people need to find a job and leave us in peace. We have enough hell up here and this blog doesn't help us. Happy New Year everyone!!

December 31, 2010 6:57 AM"

The credit union's would-be defenders reveal just how terrible things are within Priority One's working environment. In the first comment, the writer contradicts him or herself and admits to the accuracy of our reporting and even expresses concern about the security of the credit union's most confidential information. However, the writer concludes rather confusedly that we should "stop gossiping half of your story is or have been made up." So is our information confidential pointing to a problem with Priority One's ability to guard the confidentiality of it's information or is it made-up? We'd suggest the writer reread his/her comment. 

The second comment urges we leave the credit union "in peace" and that employees of the credit union "have enough hell up here." How can a person be in peace of their being subjected to "hell"? We also advise the writer rethink his opinion which is riddled with inconsistencies. 

Before reading the officer addresses from the credit union's 2009 Annual Report, keep the following information in mind. 

• As of 3/31/09, the credit union reported its asset size at $181,441.854.

• As of 12/31/10, that amount decreased to $154,486,639. 

• Deduct $10 million for the remaining unpaid balance due on the $20 million loan borrowed in mid-2008. This reduces Priority One's asset size to $144,486,639

• Total losses since January 1, 2007, the date Charles R. Wiggington, Sr. began his appointment to President exceed $37 million. 

Report of the

SUPERVISORY COMMITTEE

The principal function of the Supervisory Committee is to make sure Priority One Credit Union (POCU) is adhering to established state and federal laws and credit union Bylaws. The committee confirms and validates that the financial information reported to the Board of Directors and members accurately reflects the fiscal condition of POCU.

The Committee is pleased to report that the Board of Directors has worked carefully to perform their duties and responsibilities. Additionally, President/CEO, Charles R. Wiggington Sr., and staff have carried out their duties and obligations to be your “Financial Fitness Center” and help you win with money.

The Committee members sincerely appreciate the opportunity to serve and look forward to serving you again in 2010.

Cornelia Simmons
Chair, Supervisory Committee

Cornelia Simmons' address suggests she is far more than a little dull. According to her report, "the Board of Directors has worked carefully to perform their duties and responsibilities." We invite Ms. Simmons to explain why if the Board has carried out is appointed responsibilities, has Priority One lost $37 million. 

For those who may not recall, Ms. Simmons is also one of four officers who in 2008 and in spite of evidence proving Charles R. Wiggington, Sr. sexually harassed a former employee, she deemed it prudent and for that matter, ethical, to vote for his reinstatement. That is sufficient to impugn the veracity of any of Ms. Simmons' observations.   

She also states that the Board and President have carried out their duties to be every member's "Financial Fitness Center." She is able to state this despite the loss of more than $37 million bringing into question her faculties as Chair of the obviously incompetent Supervisory Committee. 

Message from the

BOARD CHAIRPERSON and PRESIDENT/CEO
May 2010

We are committed to financial fitness not only for your credit union but also for you, as individual members. Last year we promised to help members weather the “great recession”. Loan modifications and workouts, along with adding a free financial education and counseling service (Balance Inc.), exemplify our commitment to your financial fitness.

Shared Branching dramatically enhanced member convenience by way of our network of over 6,400 locations nationwide. No matter where our members’ plans take them, we are there. The many new conveniences, along with our exceptional array of products and superior services, have yielded a significant growth in membership over the past year.

In spite of the financial crisis that engulfed our industry, we are already in the early stages of a turnaround. In the past three months, several key indicators are improving with net income increasing, delinquencies down, and consumer loan growth resuming, in addition to our capital gradually trending upward. It is with a sense of great privilege that we embrace working together in partnership with you towards a future characterized by exceptional financial fitness for each of us.

Charles R. Wiggington, Sr.             Diedra E. Harris-Brooks  

The two horrible officers should have stopped at "We are committed" or maybe, "should be committed."  These two either believe their own lies or are trying to dupe readers into believing their inane distortions of the truth. 

President Wiggington does understand financials. That's shy he exerts so much effort and time trying to hide the credit union's actuarials. Diedra Harris-Brooks on the other hand, is ignorant about the credit union's financials relying on the President to provide her and the Board with "his" interpretations. Did some say, "Conflict of interest"? 

Shared Branching is a convenience but what these two fail to describe is how Shared Branching has benefited the credit union financially? Has it created profit and if so, how much has been reaped from the service? And the "exceptionalness" of the credit union's products and services is purely subjective and open to personal opinion. 

pièce de résistance

Report of the

TREASURER

As the worst economic recession in decades nears the end, we are seeing signs of improvement and stability all over again. Assets, once on a downtrend, have leveled off around $165 million and Member loans are maintained above the $100 million mark. Income from continuing operations appear to be improving and are projected to be positive for the calendar year 2010.

Loan charge offs remain a challenge but are expected to moderate over time. Members in financial distress are encouraged to seek credit counseling and are offered solutions by a dedicated staff.

Management has a renewed commitment to make operational efficiencies a top priority, as the credit union moves toward lowering operating costs over the next few months. We have begun the year with an emphasis on financial prudence and practice of sound business decisions. We expect all efforts currently underway will result in a better financial performance this year and beyond.

Joseph Marchica

Was it mere oversight that the Treasurer and for that matter, the President and Board Chair, all failed to mention that late last year the credit union was forced out of necessity, to close the Redlands and Valencia branches and with the closures, laying-off a large number of employees? Mr. Marchica's address like that of Cornelia Simmons, brings into question his faculties and ability to properly assess Priority One's performance.

The pièce de résistance   

It's actually Training and Education Manager, Robert West's address, that overshadows the reports signed by the President, Board Chair, Supervisory Committee Chair, and Board Treasurer. Mr. West, normally insipid, boring and inconsequential to the betterment of the credit union, provided an address that is both presumptuous and one-year after being published, proven to be untrue. If you know Mr. West, then you realize that he writes to please himself. No one is more impressed by what he says and writes than himself. 

Mr. West's is lengthy. Because of this, we've decided to only provide excerpts. His statements are mostly vacuous and though intended to impress he fails to provide anything of substance that could lend some credence to his assertions. . 

Priority One Credit Union

YOUR FINANCIAL FITNESS CENTER    

THE TRAINING/EDUCATION MANAGER’S ADDRESS 

The philosophy of the credit union industry is a simple three word phrase, "People Helping People." For more than one and-a-half centuries this phrase has attempted to communicate to the world what credit unions are all about, and what is the major difference between credit unions and banks (i.e., "members helping members" vs., "bankers helping themselves").

While all credit unions, everywhere around the world have received direction and inspiration from the high ideals embodied in this simple statement, Priority One Credit Union has decided to make a bold move with regard to it: a move we believe will help you to better understand how we are different from other credit unions, as well as banks.

Our bold move does not involve departing from the spirit of the "people helping people" message. It involves our attempt to redefine it, and as a result, reinvent ourselves and improve our value position with you—our loyal membership.

Recently, we revised our mission statement and tag line to more clearly define what we are in the business of "helping people" to do, and communicate to the world how we want our members to think about us.

Mission: To help our member-owners and employees achieve financial fitness. We are committed to offering quality products and services that help you win with money.

Tag line: Priority One Credit Union - Your Financial Fitness Center.

By making these changes, it is our intent to tell you in a way that maybe we
haven't before, that we are passionately committed to your total financial wellbeing, and to transforming the credit union into a place where you will feel
uniquely connected and celebrated.”

The address is the epitome of arrogance. Mr. West makes reference to the "bold move" allegedly made by the credit union but fails to provide a tangible piece of evidence that might lend some credence to his outlandish statement. Inarguably, less than one year after publishing his address, the credit union has lost millions of more dollars dispelling his declarations that Priority One is a "financial fitness center" capable of helping anyone 'win with money." 

President Wiggington and Board Chair, Diedra Harris-Brooks have expended tremendous energy to dupe people into believing that Priority One is doing well. Losses of $37 million reveal that Priority One is far from doing well. Like street magicians, they want anyone who will listen to look at what they're holding in their hand while deterring attention from the failures that surround them. Their stories are continually contradicted by the credit union's Monthly Income Statements and quarterly Financial Performance Reports. It is the contents of the credit union's financial reports that have continually motivated the two corrupt officers to hide reports and at times, refusing to make these public. 

Supervisory Committee Chair, Cornelia Simmons, has frequently aided their plots but the messages contained in her annual addresses are not only impugned by the credit union's financial reports but bring into question her competency and integrity. 

It is also the President and Board who sanctioned COO, Beatrice Walker's unbridled spending. The undisciplined COO contributed to the credit union's losses indulging spending on superficial trappings like wall-to-wall carpeting for the main branch and the left-overs of which were delivered to her home in Santa Clarita and charged to the credit union's account. In the midst of losses, the President and Board Chair allowed the COO, a frustrated interior decorator, to indulge in her love of interior decorating using the skills she picked up while attending the College of the Canyons in Valencia, California. In 2010, she spent weeks visiting the reception area in the main branch, watching as workman painted and raised a custom made emblem of the credit union's logo which she commissioned, all at the cost to the credit union. While standing and staring at her handiwork, she would exclaim indiscreetly, "Just beautiful, just beautiful”. Did she think she was building the Great Pyramid? 

Losing Streak, Part 1

FAILURE = FAILURE

It shouldn't come as a surprise to anyone whose kept abreast of Priority One Credit Union’s financial performance in 2010 ended at a negative -$500,000. Evidently, the losses may be more than what President Charles R. Wiggington, Sr. can bare to deal with because recently he exclaimed, "That's last year and this is this year!" Evidently, he is neither prolific nor a wonderful orator. Nonetheless, the President is trying to deter attention from the massive losses that have occurred each year since 2008 and which were all caused by his gross ineptitude as President. 

And though he is partially correct that this is a new year and thus, the credit union begins with a clean slate, the pragmatist in us considers no profit to be no profit and indicative of failure. Sadly, no matter how much the President tries to spin the facts, failure is failure and can't be construed to be anything else. 

According to its December 2010 Monthly Income Statement, Priority One generates positive income in the amount of $85,358. Though clearly a positive, it proved insufficient to offset the amount of monthly losses occurring during earlier months in 2010. What's more, the credit union would have ended 2010 in the negative even without having to pay the NCUA assessment required under the Stabilization Act. 

The $85,358 was not due to a resurgence in business. The credit union's Monthly Income Statements confirm account closures increased during the months of October and November 2010 while loan funding decreased. The positive influx of money was the result of the following: 

• Closure of the Redlands and Valencia branches which eliminated more than $10,000 a month formerly paid to rent each location.

• Branch closures also eliminated the costs of paying utilities and maintenance for each location.

• The credit union also laid-off employees at those branches, thus reducing the amount spent by the credit union on salaries and benefits. 

• The credit union reduced salary and benefit payments in 2010 when they converted several full-time employees to part-time status. 

• Marketing and Business Development budgets were also dramatically reduced. 

President Wiggington has transformed Priority One into a credit union whose survival is dependent upon divesting resources and almost addictively, reducing spending. In the past, Training and Education Manager, Robert West, has said that "Loans are the business of any credit union." Surprisingly, he is correct. On the other hand, President Wiggington understands that loan development is critical to generating profit he just lacks all understanding of how to create business amongst new and existent members and how to retain relations with the member sector. Since January 1, 2007, the date Charles R. Wiggington, Sr. began his appointment to President, Priority One become a smaller, less competitive credit union. 

Recently, President Wiggington boasted that the credit union opened a large number of new accounts. What he didn't say is that a sector of the accounts were opened with the minimum required $5 deposit and free-checking accounts were opened with no monetary deposit. He also includes accounts "approved" to be opened but where no deposit has been made.  

Neither the President or AVP, Rodger Smock, or COO, Beatrice Walker, possess the talent, business savvy or imagination needed to implement strategical planning that actually achieves its intended purpose. 

Months ago, COO, Beatrice Walker boasted during a meeting with Branch Managers and AVP's that she could bring in more business than the entire business development team, combined She has yet to prove that her statement is true. We'd suggest, President put her in the field so she can starting bringin in the fabulous amounts of new business she says she is capable of clinching.    

 A PREDICTABLE START

We recently decided to look at Priority One's reported financials for the months of November and December 2010. During our review, our attention was drawn to the immense amount the credit union spent on litigation. Prior to January 1, 2007, the date Charles R. Wiggington, Sr. began serving as President, Priority One annual expenditure on "legal" approximated $19,000 to $22,000. However, starting in late 2009, spending increased sharply. For the entire year of 2010, Priority One reported a total of $90.000 spent on litigation. Since Charles R. Wiggington, Sr. was appointed, the amount more than quadrupled. The $90,000 cannot be attributed litigation of the lawsuit filed by the former Burbank Branch Manager. So why has spending on legal quadrupled?    

The credit union's spending on consultants is nothing shore of astronomical. The President and his COO are desperately seeking solutions to offset the effects of their blundering business decisions but no amount of consultants can put a stop to the President's and COO's abuses. Though the President often blames the national economy for the cycle of losses impacting the credit union but he never mentions the effect his imprudent decisions have had upon business, the immense amounts spent annually on consultants, and litigation. President Wiggington is either ignorant about how spending impacts the credit union's bottom line or he's lying. 

We've also noted that the credit union is spending more and more money on temporary personal. According to their December 2010 report, $43,755.00 were spent on temporary staff. What this indicates that his cost-cutting efforts have, as we've reported in prior posts, replaced full-time staff with part-time staff who are not recipients of benefits. President Wiggington's so-called solutions are designed to impact employees and ensure his salary and benefits remain intact and unaffected. 

RENEWING HIS CONTRACT

There is no arguing, Priority One's Board of Directors is made up of ignorant and unethical Directors. There is also no doubt that President Charles R. Wiggington, Sr. is bad for Priority One Credit Union. Beginning in 2007, net income began to decline in the millions of dollars though it was not until mid-2008 that the President's ineptitude as a strategist began tearing away at the credit union's once secure financial foundation. 

Despite their widespread failures, the credit union continues to describe itself as a "financial fitness center" that possesses the ability to help members "win with money." Undeniably, Priority One has proven it cannot help itself "win with money." 

In 2008, Charles R. Wiggington, Sr. was accused of sexually harassing a former employee. He was suspended with pay during which a six-week investigation was conducted by EXTTI, Inc. The credit union was eventually provided evidence that President Wiggington had indeed sexually harassed the former employee. What's more, the investigator recommended his termination. 

Over the past few months, the President has entered yet another of his personal and disingenuous driven-campaigns and told some members and representatives at other credit unions that he is thinking of retiring. Believe us, he's not. It's just another concoctions. He has said he wishes to spend more time with his children. His only child who still lives at home is about 19 years of age.  

Despite his tainted history, the Board of Directors has renewed his agreement with the credit union. One has to wonder about the Board's intellectual capacity. It is apparent the Directors are all ethically bankrupted but what in his failed performance did they see that justified renewing his agreement? 

THEY MADE ME DO IT!

Avoiding to allude to his history of failures, last November President Wiggington admitted that he was "ordered" by the NCUA to close the Redlands and Valencia branches. What he fails to state is why the NCUA would have allegedly ordered the closure of the Redlands and Valencia branches. We don't believe he was ordered to close the two branches. He may have been told that he needed to reduce spending and possibly close a branch or branches. Being lazy and looking for quick fixes, he decided to close the Redlands and Valencia branches. In July 2009, COO, Beatrice Walker, disclosed that she intended on closing the Burbank, Redlands and Valencia branches, sometime in the near future. Subsequently, his latest excuse is another of his stories which are intended to help him escape accountability and portray himself as the victim. 

The NCUA informed the President that net capital had declined to 6.06% and that if fell to 6%, the credit union would be taken-over by them. We suggest President Wiggington consider hiring a writer who can at least make-up excuses that appear credible and that possess some semblance of intelligence.  

THE 2011 ELECTION 

Recently, members received copies of Priority One’s Winter newsletter in accompaniment of their account statements.  On the backside of the newsletter, is a notice inviting "qualified" candidates in "good-standing" to submit their self-nominations to vie for a seat on either the Board of Directors or Supervisory Committee. :

Winter 2011

NEWS                                                                                       

VOLUNTEERS NEEDED

We’re seeking qualified candidates for four (4) seats on the Board of Directors and two (2) seats on the Supervisory Committee for the 2011 elections.

Interested members* in good standing must submit their credentials in writing by midnight February 28, 2011 to:

Nominating Committee

                                                                                 

Priority One Credit Union 

PO Box 3270                                                                                              

South Pasadena, CA 91031-6270

The Annual membership meeting and election of officers will be held in May 2011.

*Must be 18 years or older

We of course have no faith in the corrupt Board and in particular, it's heinous Director, Diedra Harris-Brooks. It was after all, Mrs. Harris-Brooks with her accomplice, the President, who has interfered in recent, past elections, destroying the integrity of what had been a fair and impartial system. Their motivation was simply to ensure that the Board's and Supervisors, the majority of who are Black, remain in place. The current herd of Directors and Supervisors have proven to be the ultimate "yes" men to the Board Chair's every whim. 

During the past two elections, Mrs. Harris-Brooks and President Wiggington both dishonestly and uncleverly mailed ballots to only members who have checking accounts and thus excluding the much larger sector of members who only have savings accounts.  

THE PRESIDENT MAKES ANOTHER TURN ABOUT FACE

On January 2007, President Wiggington ordered increased focus on developing new business amongst Select Employer Groups ("SEGs") and decreased efforts made to acquire new business from employees of the United States Postal Service (USPS). His reason was that he wanted to change the credit union's demographics by converting the credit union's membership from blue-collar workers to white collar workers, business owners and professionals. He would never achieve his purpose. 

In September 2010, the President and COO, Beatrice Walker, ordered immediate cessation of SEG development. She informed the business development team that the credit union could not afford to exert efforts trying to develop businesses amongst SEG's admitting that employees of SEG's did not seem interested in the products and services offered by the credit union. She also urged increased efforts to develop new business amongst employees of the United States Postal Service who once made up more than 70% of the credit union's member base. 

Recently, incompetent AVP, Rodger Smock, try to diminish the importance of employees of the USPS, denying that they represent the majority of the credit union's membership. Did the chronically dull AVP forget that Priority One was founded by postal carriers or that it wasn't until the 1990's when the credit union expanded its scope of eligible members, to include families of USPS employees? 

Though the credit union references approximately 200 SEG's on records, a large percentage of these are businesses that no longer exist as a result of sales and closures. In 2010, AVP, Rodger Smock was informed that the list of SEG's should be amended and all no longer existent SEG's removed. He refused and said, "Well, it [the SEG list] makes us look good." Yes, Mr. Smock, an inaccurate list of SEG's makes the credit union look good- in your eyes only. Contrary to what the misinformed Mr. Smock thinks, misrepresentation never makes any business look good.

The President's efforts to replace employees of the USPS with employees of SEG's demonstrates his disdain for postal employees. It also reveals that he has absolutely no concept of what sectors contribute most to the development of new business. There is a serious disconnect when it comes to what President Wiggington knows about the credit union's membership. 

TRYING TO REBUILD BRIDGES

President Wiggington has been expending a lot of time lately, trying to rebuild bridges he obliterated. If you visit the credit union's website, you'll find the following message:

UNIVERSAL AUTO LEASING AND SALES

Following COO, Beatrice Walker’s arrival to Priority One on June 1, 2009, she and the President decided to end the credit union’s relationship with Universal Auto Leasing and Sales, who according to the President, were failing to bring in the amount of business needed by the credit union. He also told some staff members, that the auto broker was not providing acceptable service. The President evidently didn't realize that Priority One has become the subject of increasing complaints citing unacceptable member service.  The President and the COO ordered the Loan Department staff to only refer members who were in search of an automobile, to Auto Alliance, the broker introduced to the credit union by Ms. Walker. 

Despite the long relationship between the credit union and Universal Auto Leasing and Sales, in early 2010, Ms. Walker assigned a desk within the Loan Department in South Pasadena, where a representative would sit during business hours and meet with members who expressed an interest in buying a car. 

Auto Alliance, unlike Universal Auto Leasing and Sales, charges $75 to search for an automobile. The fee serves to further undermine the credit union industry's motto of "people helping people." At Priority One, the motto is "People helping themselves." 

WHOLESALE INVESTMENTS, INC.

In 2008, Priority One, through one of its business development representatives, entered into a business relationship with  Wholesale Investments, a broker located in the city of Van Nuys, California. 

The owner, who was enthusiastic to develop a relationship with Priority One and paid for all marketing costs used to promote his company and asked if he could place one of his representative at Priority One's main branch in South Pasadena, California. At the time, hew as told the credit union could not provide a desk because it would create a conflict with it's relationship with their other auto broker, Universal Auto Leasing and Sales. Furthermore and according to President Wiggington, there was no physical space to setup a desk. That was a lie.  

In 2010, the owner of Wholesale Investments, Inc. was informed that Priority One had chosen to promote the services of Auto Alliance who would serve as the credit union’s ONLY auto broker. Incensed, the owner accused the credit union of being disingenuous and pointed out that his company paid for all marketing materials promoting his brokerage. He also complained because he had been denied a request to assign one of his employees within the credit union’s main office. Angered he demanded the name of a person he could complain to at the credit union and was immediately provided with the name and cellular and telephone numbers of Senior Vice President, Rodger Smock. Several calls failed to garner a response from the Senior Vice President. 

As reported here previously, Auto Alliance has to date, failed to  produce the level of business Ms. Walker said would be attained. The recent efforts to re-establish working relationships suggest that the President has possibly taken an introspective look at his huge mistake in severing relations with Universal Auto Leasing and Sales and Wholesale Investments, Inc. 

To be continued......