The $2.1 billion Municipal Credit Union announced it would launch a program that would help roughly 2,000 of its members break away from using payday loans.
The New York City based, 367,000-member credit union did not specify a date the “Step Line of Credit” will become available for members, but a July 9 statement about the program said it would become available this month.
Municipal said it will commit $1 million to the program and offer members fixed rate loans of between $250 and $750 to help them pay off existing payday loans and break the payday loan cycle. The Step Line loans will also carry a 15.99% interest rate, Municipal said in the announcement.
Municipal also put the program in the context of the Clinton Global Initiative, a program run by the Clinton Foundation, to bring leaders and corporations together to launch innovative programs to address economic development challenges in the United States and other nations. Municipal announced the program at a meeting of the Clinton Global Initiative America in Denver.
“By offering the Step Line of Credit program to our members, and formalizing this commitment with the Clinton Global Initiative, we hope to improve our members' financial well-being. Our program will help to break the predatory lending cycle they are trapped in and provide guidance to better manage their finances and prepare for future emergencies,” said Mark Brantley, Municipal chairman, when announcing the program.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.