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On October 10, University Federal Credit Union in Austin, Texas, kicked off a second-chance lending promotion aimed squarely at members who had recently financed through dealerships.

Part of the credit union's new"Wheels101.com" member education program, the second-chance promotion has taken off like a rocket and energized the entire credit union staff:

* In just three months 131 members refinanced their vehicles with the credit union-that's $2.3 million in loans.

* These 131 members collectively saved more than $207,000. The average savings per member was $1,508.

* Nine of these members were so happy about their inexpensive car loans they borrowed an additional $93,000 from the credit union for other purposes.

* Five members were so happy they took out $35,000 worth of new credit cards.

* One member was so pleased the credit union was trying to help him that he converted his car loan-even though the credit union loan cost $24 more than the dealer loan.

"The second chance program has the loan officers wildly excited," says Bill Berglund, head of the Wheels101.com program. "And the excitement is contagious. Cross sales of our gap and mechanical breakdown insurance have more than doubled."

The credit union pays a $25 incentive to any staff member who refers a member for refinancing-and those checks are going out in droves.

"Members are closing loans with us directly in record numbers," says James Nastars, lending senior vice president. "Members, more than ever before, are also calling us from the dealership asking for their approvals."

And the credit union is certainly finding out some interesting things when talking to members who financed through dealerships. Until Jan. 1, University Federal had an indirect lending agreement with more than 100 dealers. The credit union has had excellent relationships with many of these dealerships, Berglund says.

"But as we called our 'approved-but-not-funded loans' list, we found in many cases the dealer had not told members they were approved through their credit union-when they were. In some cases, they were told that we had denied them when in fact we had approved them-at lower rates."

Marisol Cantu, one of two fulltime loan funding specialists assigned to the recapture program, has the enviable job of telling members how much money they'll save. "I can't tell you how many times I've talked to members who can't believe how much they've saved. It's unbelievable how happy saving a couple of thousand dollars can make people."

As part of Wheels101.com, University Federal is also making a concerted effort to encourage members to purchase vehicles from local dealers rather than from other cities or via the Internet. The credit union has found that educated members generally can buy locally as cheaply or cheaper than by going to another city or by using an online or brokerage service. Buying locally is good for the local economy, too, another plus for the program.

Burton Eubanks, for 24 years the chief executive officer of this 100,000-member credit union, couldn't be happier. The Wheels101.com program is driven entirely "by doing right by the member," Eubanks notes. "The entire program, from our new member education Web site to the extensive training of all our staff in Wheels101.com philosophy, has energized all our lending and member counseling efforts. It's a wonderful undertaking for the credit union. I am proud of the program and what it's done both for our members and our staff."

University Federal's efforts, from the Wheels 101.com program to its recapture program, work dramatically well because employees work hard to put members' financial well-being first.