I was 19 and I was scared. I had a new baby on the way and had saddled myself with an entrepreneurial spirit. I wanted to build something myself; it was a mission. My wife, who adored me, gave me the powerful love and support of a solid timber, anchored by her “old soul” determination. I needed a piece of equipment for my work, but it was expensive. I needed that equipment to begin my journey and fulfill my dream of being an independent, self-employed man.
I stopped into the Pipe Fitters Credit Union my grandpa told me about. He said, “They will help you, James. Don’t be shy about it! All they can do is say no.” We didn’t have a lot growing up, and I knew I couldn’t ask for help from my parents or any other relatives. That credit union took a chance on me.
Thirty-five years later, I have the life I once only hoped for: three successful sons and a marriage that has stood the test of time. I am a lucky man. Throughout those years of challenges, the greatest lesson I learned was the importance of adaptability. As a long-time credit union member, I have seen the beauty of what it means to be part of a community. I have invested in commercial properties through the CU ecosystem, and my mortgage in Colorado is held by a local credit union.
Probably the most challenging time in my journey was when I realized the need to pivot my small business. I repair cars. Dealing with insurance claims daily, I saw a massive, predatory shift in how claims were processed. Long-time clients of mine were being put in precarious situations due to systemic changes in the industry.
My clients are falling victim to a “bait and switch” culture:
- Hidden high deductibles: Internet insurance policies are often shopped by monthly price alone. Deductibles are frequently raised without explicit consent to keep premiums low. Because of rising costs elsewhere, people hunt for lower rates, resulting in massive sticker shock when an accident happens. In fact, 80% of Coloradans polled don’t even know the cost of their own deductibles.
- Omitted rental coverage: Rental coverage is often stripped away when policies are updated or replaced, frequently without a mention. This is a byproduct of many policies being bought online without agent assistance.
- Massive insurance underpayments: My client, Alex, held onto an insurance check for a hail-damaged vehicle for over a year because he knew the payment was too low. The original check was for $3456; after our help and adjustment, the actual cost was just under $12,000.
The question is: Are your CU portfolios in jeopardy?
I have seen a race to the bottom in claims handling, especially since the pandemic. I used to see an adjuster come to my repair shop for every claim from every insurance company. Now, I only have one company that consistently shows up. Everything else is “desk adjusted” via a screen.
Credit unions need a simple forensic firewall—a white-labeled system that gives members “teeth” when facing these challenges. It is time to stop referring your members to the companies that claim they are “in good hands” or “like a good neighbor,” because, unfortunately, the bottom line now rules above all else. The current system does not favor the member who doesn’t know the rules of the game.
You can change that for your credit union today. You can decide that proactive education and a five-minute “Report Receipt” will protect tens of millions of dollars in assets, even for small credit unions. ClaimStinger.com is the answer. Let’s make a shift that protects your members and attracts new ones.
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