WASHINGTON — The federal government would make grant and loan money available to encourage financial institutions to reach out to low-income consumers who do not have credit union bank or credit union accounts, if a bill introduced Thursday by Sen. Daniel Akaka (D-Hawaii) passes.
One program would fund outreach efforts by credit unions and banks among communities in which there are large numbers of individuals who don't have accounts at financial institutions.
The other program would help financial institutions develop affordable alternatives to payday loans. Consumers who apply for loans under this grant program would also receive financial literacy education. Loans would be subject to the NCUA's loan interest rates, which for those loans currently cap the rate at 18%.
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:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 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.
