Six Credit Unions Selected to Seek Payday Loan Alternatives
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 alternatives to high-cost “payday” loans for customers.
Beginning early the following year, the financial institution will continue to work utilizing the credit unions in Ca, Illinois, Louisiana, nyc and Ohio to simply help low-income customers who now utilize short-term loans to transport 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.
” Through an approval that is rigorous, we selected these credit unions for their strong documents of enhancing the communities they provide,” stated Lewis Jones, president for the J.P. Morgan Chase Foundation. “These brand new lovers is going to work difficult on the the following year to find practical options which will help consumers and their 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 individuals, families and organizations from five parishes in Louisiana. The credit union will introduce “APPLE” consolidation loans to greatly help members repay debts as high as $1,000 which can be owed to predatory loan providers. Borrowers could have around eighteen months to pay for straight right back these low-interest loans, at A apr that is fixed of ten percent. ASI could also be helpful their people develop assets while settling their loan; a percentage of each APPLE loan payment is supposed to be put in a brand new checking account, to greatly 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 length of these APPLE loan.