The National Federation of Community Development Credit Unions on Monday unveiled a new program designed to help CDCUs in the New York City area offer payday loan alternatives.
The “Borrow and Save” loans will be at two CDCUs in New York, the $8 million Union Settlement FCU in East Harlem and the $138,000 Love Gospel Assembly FCU in the South Bronx, the National Federation announced at a press conference.
According to Melanie Stern, senior program officer at the Federation, "the goal of the new program is to get consumers on the right track to financial health through responsible products that enhance positive financial behavior and builds assets.".
Audia Williams, CEO at Union Settlement FCU, said, "Our goal in participating in 'Borrow and Save' is to turn people into savers, so that they don't need to borrow when an emergency expense pops up in the future.
“It's a common misconception that low-income people can't save, and through this product we hope to offer a much-needed product that also incentivizes positive behavior and shows our members that they can save."