DURHAM, N.C.-Celebration was the order of the day here as the Latino Community Credit Union, La Cooperativa Communitaria Latina de Credito- en Espanol, por favor- opened its doors for the first time here on June 26. It is the first credit union to bring affordable financial services to the area's growing population of Latinos; the first credit union specifically aimed at serving the financial needs of Hispanics in the Tar Heel State, and only the second such credit union chartered in the Southeastern United States. The emergence of the Latino population in America may be the flavor of the month discussion for presidential candidates, but here in the towns of Raleigh, Durham and Chapel Hill, the Triangle Area, many Latinos were unable to find banking services; and they were (are) distrusting of financial institutions, and as a result were victimized. Being courted as a voting bloc is one thing, getting robbed quite another. Inspiring the faith that led to the creation of this new credit union took many months of hard work, and many people deserve the credit for it, none less than that Ivan Parra, executive director of El Centro Hispanico, LCCU's sponsor organization. It is a non-profit that provides all manner of support and educational services to the Latino community. The lack of banking services left a big void here, Parra said. "Latinos are often locked out of the economic system because of language and cultural barriers. Then they become victims of theft or fraud, pay too much for check cashing and other services, and can't establish the credit histories they need to buy a home. The new credit union will be a way to build wealth in our community." When John Herrera, of the Community Self Help first got involved in starting the effort to form a credit union, he said his faith in the cooperative spirit was rewarded by the outpouring of assistance he found. Everyone, he remarked, from the state regulator, to the sponsor group, to the NC Minority Support Center, to State Employees Credit Union, to First Carolina Corporate to the Central Carolina Bank were willing to lend a hand. Self Help Credit Union, Tri-County Credit Union, Saint Luke CU, School Worker's FCU and College Heights CU all came forward too, he said. Together, they contributed $2.5 million in deposits. LCCU also has some $200,00 in grant money to cover start-up costs. In record time they got a charter and settled in to find and remodel an office location inside the Center. Next step was to think about employees. They found a manager in Tanya Reimer, a recent graduate of the University of North Carolina (political science, with a specialty in Latin American studies) who previously worked at a bank. She has become baptized in the credit union philosophy and thinks it will be a natural attraction to Latinos. "Credit unions are owned by their members. Latinos will respond to that. It's what credit unions stand for, and the commitment is 100% here." Reimer was gladdened by the day's events. "We opened 40 accounts on opening day, and today (day two) we've opened 21 more (by noon) so I'm very excited. The CU will be open Monday and Friday from 12 p.m. until 7 p.m. and on Tuesday, Wednesday and Thursday from 9 a.m. until 2 p.m. "We have two employees and an MBA intern who is helping with the financial literacy program and with marketing. Everyone is bilingual," she said. One teller is from Mexico, the other from El Salvador. Reimer's mother is from Honduras. "There is an enormous demand for services," she said, "and we're ready for the challenge. Best of all, she said, is the full array of solutions to the problems faced by the membership that the credit union can provide. "Our rates are affordable. Money orders are 25 cents, versus $1 in most other local places. Wire transfers are $10 for amounts up to $10,000. Our checking account fees are $2 per month. Savings accounts are complimentary with only a $10 minimum." The power brought to the table by State Employees CU means that LCCU has access to its statewide ATM network ( surcharge-free, of course). And check cashing is free as well. Already, that represents a real savings for most members. Teaching them to have faith in the US banking system will be a learning curve (see related story on El Paso, Texas CUs, on page one) but one that is achievable, said Reimer. Jim Blaine, president of SECU is rightfully proud of what a small dedicated band of believers has been able to accomplish. "Isn't this happening in other states? Are we such an example?" he asked dismissively. The grand opening brought Durham Mayor Nick Tennyson and Rep. David Price (D). "Today we're celebrating a `commencement' of sorts," said Price. "The opening of the Latino Community Credit Union represents an opportunity for the Triangle's Latino residents to share in the area's prosperity and create a better life for themselves and their families," he added. Perhaps best of all, members are now free to join the financial mainstream of America. All together, it was a reason to have a fiesta, which they did. -
caburger@cutimes.com
