NEW YORK–( COMPANY WIRE )–Nov. 10, 2004–JPMorgan Chase & Co. as well as the nationwide Federation of Community developing Credit Unions have selected six credit unions in five states to generate and develop options to high-cost “payday” loans for customers.
Beginning year that is early next the financial institution will continue to work with all the credit unions in Ca, Illinois, Louisiana, nyc and Ohio to assist low-income customers whom now utilize short-term loans to hold them over until their next paycheck. These customers are faced with high fees and rates for loans as short as a week or two with few choices.
” by way of an approval that is rigorous, we selected these credit unions for their strong documents of enhancing the communities they provide,” stated Lewis Jones, president regarding the J.P. Morgan Chase Foundation. “These brand new lovers will continue to work difficult within the year that is next find practical alternatives that can help customers and their own families keep a lot more of their hard-earned cash.”
The funds totaling $225,000 goes to (in alphabetical purchase):
ASI Federal Credit Union (Harahan, Los Angeles) $25,000 – ASI FCU serves people, families and 
companies from five parishes in Louisiana. The credit union will introduce “APPLE” consolidation loans to greatly help people pay back debts as high as $1,000 which are owed to predatory loan providers. Borrowers could have as much as eighteen months to cover straight right right back these low-interest loans, at A apr that is fixed of 10 %. ASI could also be helpful their people develop assets while paying down their loan; a percentage of each loan that is APPLE will likely to be positioned in a new checking account, to simply help the user through future emergencies. Borrowers will also be expected to pledge to not borrow money from any payday or lenders that are predatory the extent of these APPLE loan.
Bethex Federal Credit Union (Bronx, NY) $25,000 – For 34 years, Bethex FCU has offered communities into the Southern Bronx, where there are many more check cashers borough-wide than just about virtually any financial solutions provider. Bethex use their APPLE grant to enhance their “Cash-in-a-Flash” system, which offers emergency loans as much as $500 without a checking account or good credit score. Loans are usually available the day that is same are required and they are designed to bring individuals to the credit union where they get credit counseling, funding literacy training, along with other development solutions.
Faith Community United Credit Union (Cleveland, OH) $50,000 – for over fifty years, Faith Community United Credit Union happens to be providing affordable services that are financial low income residents of Cuyahoga County, Ohio. Presently, very nearly 30 % of this credit union’s users have actually incomes underneath the federal poverty line and many people that meet with the minimum demands make use of the credit union’s “Grace” pay day loans. Faith Community United use their APPLE grant to help ease these needs for more recent people while increasing their Grace Loans by 30 %. The most for a Grace Loan is $500 in every and the credit union requires borrowers to save a minimum of $10 per month and show proof of employment month. Faith also encourages brand brand brand new individuals to make use of their other asset-building programs, including monetary literacy and homeownership classes.
Lower East Side individuals Federal Credit Union (nyc, NY) $25,000 – Reduced East Side individuals Federal Credit Union had been chartered in 1986 and it is a community that is full-service credit union whoever objective is always to provide use of affordable monetary solutions to all the residents and companies when you look at the Lower East Side of brand new York City. In accordance with the 2000 Census, over fifty percent of all of the households in this region reside in poverty and roughly 27 per cent of this regional populace are foreign-born. The credit union will make use of their APPLE grant to supply crisis, non-renewable loans all the way to $500 to any used user whom gets compensated by check. The credit union expects to create at least 500 loans that will assist as options to high-cost payday and income income income tax reimbursement expectation loans. The credit union additionally expects that 250 borrowers will join monetary literacy classes and 200 will get counseling that is financial financial independency.
Northeast Community FCU, Mission region FCU and Patelco CU (bay area, CA) $50,000 – Northeast Community FCU, Mission region FCU and Patelco CU have actually created a consortium to jumpstart monetary task and solutions one of the most underserved populations in san francisco bay area. The consortium promises to refine Northeast’s “Grace Loan” program and expand it to Visitacion Valley, Excelsior and Bayview-Hunters aim. Research reports have shown why these two linguistically and culturally diverse areas are particularly at-risk to payday lenders. The 3 credit unions will contact these communities by making a Credit Union provider Organization (CUSO) in accordance with a satellite branch workplace and industry workplaces when you look at the target communities.
Southern Side Community Federal Credit Union (Chicago, IL) $50,000 – South Side Community FCU is a newly chartered credit union that features skilled significant development since starting its doorways in November 2003. Serving a location of Chicago more targeted by payday loan providers than just about just about any, the credit union has introduced the payday that is first alternative into the Southern Side of Chicago. The credit union has modeled its approach regarding the Payday that is successful Alternative (PAL) item of Northside Community Federal Credit Union, and can make use of its APPLE grant to a lot more than triple the sheer number of PALs offered in 2005.
JPMorgan Chase as well as the Federation continue to seek an associate credit union to produce options in Texas as an element of a $400,000 grant announced because of the lender previously this present year. Complete results and analysis are required into the springtime of 2006.