Similar risks apply to both CD and Share secured loans.

Some methods your credit union may use to mitigate the risks include:
  • Your credit union may restrict a member from opening these loans online by restricting the member from having online banking access.  
  • Your credit union may opt to make a special certificate product or savings product for CD/Share Secured Loans and limit those members who may open these types of accounts.
  • Your credit union may wish to consider the range of balances for your savings accounts/certificates querying table MEMBER1/MEMBER3 before allowing Share/CD Secured Loans for a savings/certificate product. 
  • Your credit union may limit members from opening a loan online by using the membership-level controls of Personal Internet Branch (PIB), accessed in Member Personal Banker.  Unchecking the “Apply for Loan” box blocks the member from opening a loan online.  NOTE: This blocks the member from opening any loan online; it does not apply just to CD Secured or Share Secured loans. 
  • If your credit union allows members to adjust their PIB profiles themselves, you can elect to turn off this feature on a membership by membership basis. 
    • Additionally, it is a good practice to evaluate this change periodically. For example, if a member is no longer a minor, you may wish to check this setting to allow the member to then open loans online.