DEARBORN -
Dearborn Village Community FCU, a $17.1-million CU in Dearborn, and Communicating Arts CU, a $23.5-million CU in Detroit, are providing staff to a temporary center near State Rep. Steve Tobocman's Detroit office, where they will help residents prepare their tax returns through April 14.
"This doesn't really focus on our members directly, but it does have some influence on people within our community," said Hank Hubbard, CEO at CACU. "The idea is to help people that are unbanked learn about services that will help them become more financially stable."
He said among the specific goals of this program is to ensure that people get the federal Earned Income Tax Credit, which is estimated to range from $412 to $4,536 this tax season for lower-income working families and individuals who qualify.
Both CACU and DVCFCU created incentives to help lure residents to their CUs. Their offers were put into a coupon book for participants that also included information on where to get legal aid, how to get assistance with utility bills, and who to talk to about education financing.
Hubbard said his CU's coupon promised to deposit $10 into a checking account to anyone who uses the Community Tax and Resource Center. So far, he said, 10 people have taken advantage of the offer.
Terry Denmark, CEO at DVCFCU, is offering $5 to new members.
In addition, his CU has a special 10.47% 1-year CD available to new members with a $1,000 deposit.
"It encourages them to join us and save their tax refund," he said.
Denmark said Rep. Tobocman's program fit nicely into DVCFCU's business plan to partner with Southwest Detroit.
His staff that is working at the tax office five days a week is promoting several products and services. Among them, the credit builder program, designed for people who have messed up their credit or have no credit. Members can borrow $1,000 or $2,000 at 3.75% interest. However, the money has to remain in a share account for the duration of the loan period, either 12 or 24 months. During that time, the member has to make payments.
"It costs them about $44 a month," Denmark said. "But, in the end, they have a down payment on a house or a car, or whatever else they might need. And, they've built up good credit."
While DVCFCU doesn't offer courtesy pay, he said they do give their members an overdraft line of credit up to $250 at .05 cents at day for each $100.
The Community Tax and Resource Center is a test site funded by a $114,600 grant from the Skillman Foundation's Good Neighborhoods Initiative. In addition to free tax preparation services, participants can receive financial advice from the mix of its community partners.
