UFOs: They don’t come in peace

UFOs are back in the headlines and our federal government has released two tranches of disclosures. Most people when they hear about “UFOs,” think of Unidentified Flying Objects. Some eyewitnesses have testified seeing strange lights or mysterious orbs in the sky. There are even videos of UAPs (Unidentified Aerial Phenomena) and reports about aliens of different types.

These events have sparked debate among those of faith and those who believe in scientific evidence about what they are and why they appear. However, the big question that always follows the topic of alien life is: Do they come in peace? The answer is—we honestly don’t know. If extraterrestrials do exist (and I’m not saying they do), some might be harmless and some might not be. But there is another kind of UFO that financial services professionals see far more often and there is much less mystery about their intent. They are called Unidentified Financial Objects.

UFOs of this sort never come in peace. Unidentified Financial Objects are the financial products and storefronts that show up in communities under economic stress and present themselves as “lifelines.” They may look friendly and humane, but their negative impact is predictable. Friends, I repeat, they don’t come in peace! They show up on your “Main Street” and arrive to extract resources from those who can least afford to lose it. UFOs come under the guise of providing credit quickness and convenience. But, they are not the least bit friendly.

All UFOs are not created equal, but their mission is the same. Invade vulnerable neighborhoods! “Unidentified Financial Objects” are high-cost, high-fee financial options that target people of modest means—people who are living paycheck to paycheck. The most common examples include:

These products are often designed to feel easy: fast cash, quick approvals, and minimal requirements. They are marketed as solutions for emergencies, but many are built in a way that makes continued and repeat use highly likely. For many victims, it’s not irresponsibility to fall prey to this debt trap. They just have to be under financial duress.

Unidentified Financial Objects are strategic how they spread across urban centers. They tend to target places where people have fewer choices, such as neighborhoods with:

In those moments, when rent is due, the car breaks down, or a medical bill is due, speed feels like safety. That is why these products are so effective at luring people in. When a family needs a solution by Friday, the safest, financially healthy option is often not the easiest option to access quickly. Predatory lenders realize this and take advantage of that gap. Fast food spots provide similar quick, easy, and convenient options, but the long-term impact is detrimental. But that topic is for another time and another place.

High-cost UFOs do not only harm one borrower. Over time, it can weaken whole communities. Excessive fees and usurious interest rates drain money that could have gone to savings. Cyclical borrowing turns short-term problems into long-term problems. Car repossessions can lead to job loss or missed work. Damaged credit can also reduce options for housing, transportation, and even employment. Finally, mental wellness is put to the test due to financial stress that spreads across families, caregivers, and households.

That is why “predatory lending” is not only a consumer issue. It is a community stability issue. When enough families suffer financially, local economies suffer. Neighborhoods become more fragile. And the debt cycle becomes harder to break.

While we can debate the existence of Unidentified Flying Objects and whether they come in peace, we do know the incontrovertible truth that Unidentified Financial Objects are harmful and do not. Their intent can be measured by their impact on consumers and to communities.

This is why credit unions exist. Credit unions were created because communities needed financial services that were local, fair, and focused on people helping people. Not siphoning profit from emergencies and vulnerable circumstances. The credit union mission was built to address this problem. When the marketplace offers fast and easy “solutions” that quietly make things worse, credit unions can combat the invasion of UFOs by doing what predatory lenders cannot do.

They can provide safe and affordable deposit accounts that reduce reliance on check cashers.  Offer small-dollar, low interest Payday Alternative Loans (PALS) loans with realistic repayment terms. Create credit-building pathways rather than credit traps. Educate members with dignity about managing their finances and serving with a human touch and not just with AI. In short, credit unions can provide safety nets for unbanked and underserved communities.

If we want to push back against predatory UFO invasions, it will take more than messaging. Designing and delivering safe and affordable financial products to meet the demands of people in need is essential. Therefore, credit unions must offer real alternatives that relate to real life situations. Members in crisis need speed tethered with clarity. If the credit union alternative takes too long or is too hard to access, the predatory option wins by default.

Complex account openings, high minimum balances, or fee structures to offset risk, lead people back to the high-cost marketplace. Also, partnering with reliable and proven fintech companies can help credit unions serve more people faster with current technological advances. But this must be a balanced approach, as automated decisions without appeal paths can feel cold and unfair, especially for not so credit-worthy individuals. In other words, loan denials should be accompanied by a path forward, not a dead end.

Unidentified Flying Objects and extraterrestrials may or may not come in peace. But Unidentified Financial Objects for sure do not. They show up when people are under financial pressure, offer quick money, and often leave borrowers with worse credit and higher stress. Over time, they can weaken whole communities. They promise “To Serve Man,” but actually man is served on the predatory menu.

That is why credit unions play such an important role. Credit unions are not just competing for market share. They are in the marketplace for community well-being. When credit unions provide safe alternatives, they do more than just win members. They protect people and neighborhoods from financial harm that invades quietly and quickly. Without a doubt, credit unions not only come in peace, but foster goodwill and financial well-being. They are “not for profit, not for charity, but for service.” Let your credit union be of heavenly service to someone today?