From Divorce Disaster to Financial Rebound

By ERIN WHITE Several years ago, I was a Branch Manager at a local Credit Union when a nonmember came in to request a notary out of convenience. I offered to help with this seemingly simple and quick interaction and little did I know at the time, it would lead to one of the best relationships and most heartwarming experiences of my career.

I invited the gentleman into my office and asked what we would be notarizing. He handed me a stack of papers and said, “My divorce documents and parenting plan.”

I expressed my empathy for the divorced dad and asked how old his kids were and what they liked to do. He began telling me a long story detailing the events that led up to the divorce. I listened intently through his recap of highly emotional circumstances. In the “conclusion” part of his story he shared why he was now in Montana and what he was looking to do as part of his rebuilding process.

My heart was incredibly moved by his resiliency, dedication to his children, and his eagerness to start a new life journey as a single dad to very young twin daughters—while battling feelings of hurt, loss, and uncertainty—not sure how to rebuild his life I let him know I would serve as his backseat driver in his financial life if there was any way I could help. This led into a conversation about his personal financial situation which was in complete disarray.

He was the sole financial provider for his family—upon being left by his wife, she maxed out the credit cards in his name (she was an authorized user) leaving him in a mound of debt. The past due payments resulted in a subpar credit score below 520. She also took the new vehicle they’d recently purchased—leaving him without a car—his biggest concern amid all of this was how he was going to be able to transport his little girls safely.

He wanted to apply for a car loan. We did, but unfortunately I couldn’t approve the loan request due to his insufficient credit score and recent delinquencies being reported. I shared that while I couldn’t approve his loan at this time, this was not a dead end—we could work together to position him so that next time he applies, I am in a position to approve it.

I reassured him we could sort this out, work together to devise a plan, a budget and most importantly, a banking relationship so I can leverage the products and services offered through the CU to help him re-establish himself financially.

He went on to purchase a used vehicle for a small cash price, and subsequently, made appointments to visit me with me every month to follow up. On our first meeting, we called the creditors together. I was there to help talk to them, to say the right things, to take the burden off the member and leverage my knowledge to make the best plan in support of this gentleman.

We opened a checking and savings account, set up his direct deposit from his new employer, and established monthly payment plans to repay the past due obligations. We established a budget, allocating funds to pay the debts, cover his living expenses, and his daily spending money. Month after month, he visited with me and month after month I watched his tears turn to smiles. This was the most resonating experience—to see him transform with confidence.

One day, he visited me, this time he was feeling defeated again. He said the car he purchased all those months ago was starting to give out. I said, let’s look at an upgrade. I had a nearly year-long relationship with this member at this point. His direct deposits had come in consistently, he took every piece of advice I provided and used it diligently, paid off all of the delinquencies, had good job stability, and most importantly, he put forth a tremendous amount of work. I felt confident in matching his efforts.

He was looking for a safe vehicle for his kids, and reliability was the goal. We completed the loan application (I was conservative, asking for a small dollar amount under $10,000 to ensure the monthly payments wouldn’t become burdensome). Unfortunately, his credit score still fell short of minimum requirements.

I proposed an exception loan. I submitted a credit memo detailing the events this member has gone through and highlighting the actions he took to better himself and the integral relationship he had built with the credit union. I was able to get approval to grant the exception and I approved the loan. Now, this was a higher interest loan so it was not the end goal. The end goal was to continue to build credit so he could purchase or refinance at a lower rate and be well positioned financially to do so.

I continued to see him regularly and fast forward, we decided it was time to see about options to get him at a lower interest rate and slightly newer vehicle. This time, I input the loan application, pulled credit, and he qualified having a credit score over 720! He was able to purchase a newer truck at a lower rate and qualified as a traditional borrower. This story really is about a divorce disaster averted and financial recovery completed.

What we learned. This story speaks not just for myself, but for the credit union industry as a whole. We are always looking for ways to support members through all of life’s events, which inevitably center around finances. It also speaks to the culture of credit unions, empowering of staff and coworkers through knowledge and resources that are then shared with the membership to navigate their unique financial lives. This story highlights the dedication and compassion of staff who work in an environment where they are supported, confident, and always seeking ways to help. It’s not just about saying ‘no,’ but about understanding that while we can’t always accommodate the members immediate request, we can provide resources, education, and create alternative options and support to build long-term relationships and improve the financial lives of our neighbors in the communities we serve.

• Excerpt from "The Credit Union Way" (2025)