Some methods your credit union may use to mitigate the risks include:
  • Your credit union may wish to have procedures in place to ensure that secured holds are placed on certificates opened by your member. 
  • Your credit union may restrict a member from opening a CD Secured loan online by restricting the member from having online banking access.
  • Your credit union may opt to make a special certificate product for CD Secured Loans and limit those members who may open these types of certificates.
  • Your credit union may wish to consider the range of balances for your certificates using table MEMBER3 before allowing CD Secured Loans for a 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 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.