Rules are Made to be Broken

Auto Loans - 1.99% APR Special!

Yes, this is a promotional rate that is currently being offered by Priority One Credit Union. The rate, which became effective on January 1, 2009, will continue to be offered indefinitely, at least according to President Charles R. Wiggington, Sr. Of course, amongst his staff, he's disclosed he will terminate the offer without prior notice. 

The rate is being offered in the midst of our national economic crisis. According to Senior Vice President, Rodger Smock, the rate offers an opportunity to those applicants who qualify, to purchase a new or used vehicle at a phenomenally low APR, but the act is hardly a gesture of kindness, at least based on a statement made by President Wiggington in March of 2008. At the time, he offered sagely advice, stating, "When their APR's and yields are too low, that tells you the institution is in trouble." So is Priority One in trouble?  

To qualify for the 1.99% APR, an applicant must satisfy the following requirements:

• Must have a FICO score of 680 or higher
• Must make a minimum down payment of 10% of the total cost of the vehicle
• Must open an allegedly free checking account  
• Must enroll for electronic payroll deposit

There are two other stipulations, actually disclaimers. These are: 

"CURRENT POCU LOANS DO NOT QUALIFY"

This means that if a member has another loan currently financed by the credit union, then that loan cannot be refinanced for the purpose of obtaining the lower APR. 

Members obtaining funding will have to "cash out"

This means that if the amount of the loan exceeds the amount actually being financed, then the overage in funds must be deposited into the member's Priority One account.

This past month, Board Director, O. Glen Saffold refinanced his current Priority One automobile loan so he could obtain the lower APR. Of course and based on the current requirements, Mr. Saffold's loan did not qualify for refinancing, yet his request was readily approved by President Wiggington. So what happened to the credit union's stipulation that "current loans do not qualify"?

Furthermore, Mr. Saffold refused the "cash-out" despite the fact the promotion clearly states a member must accept the cash-out. So what happened? 

Mr. Saffold found exemption because he serves as a voluntary Director of Priority One's Board of Directors. However, the exception violates the terms of the promotion. Mr. Saffold like the President and the Board Chair, is Black. Under Charles R. Wiggington, Sr., skin color has been an issue alluded to by the Black Directors of the Board. In 2006, O. Glen Saffold and Directors, Janice Irving and Thomas Gathers, disclosed they selected Charles R. Wiggington, Sr. to serve as the credit union's new CEO because what Priority One needed "is a Black president." Really? 

Though the Directors on the Board all serve in a volunteer capacity, granting Mr. Saffold exemption to the requirements of the 1.99% APR promotion amounts to a perk. There are state laws that clearly delineate the responsibilities, qualifications and limitations of Board Directors but at Priority One, abiding to the law is a choice not a requirement. When Mr. Saffold financed his automobile, he dis so as a Member of the credit union, not an officer.

What's more, President Wiggington would not have made an exemption for any other member. Isn't that discrimination? 

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