Bank Giant To Fund CU Payday LoanProject
CHICAGO - (06/24/04) -- JP Morgan Chase announced itsnon-profit foundations will provide a $400,000 grant to theNational Federation of CDCUs to work with community developmentcredit unions to crate and expand alternatives to high-cost paydayloan programs. The grant, announced Wednesday during the annualconvention of the National Community Tax Coalition, will help theFederation identify credit unions in five states and help thembuild programs to assist low-income consumers who need short-termloans to carry them over to their next paycheck. "I think this isan important step in our ability to intervene in some of thesecommunities," Clifford Rosenthal, head of the Federation told TheCredit Union Journal. "We've seen an explosion of these paydaylenders across the country the past few years and it's been painfulfor our members to watch. They don't have the resources to competeand offer alternatives." Plans call for the funds to be distributedin $50,000 awards, half to supply loan-loss reserves and the otherhalf to finance financial education, counseling and other expenses.The grant is being provided by the JP Morgan Chase and Bank Onefoundations, charitable arms of the two banks in the process ofmerging.