LAS VEGAS -
And while most can gamble and walk away from the tables when they're tapped out, others cannot, creating financial problems for many people. For others, the low-wage workers in a market where costs can be high, they face other risks.
Not surprisingly, Brad Beal, CEO of Nevada Federal Credit Union said his CU occasionally comes across people with gambling problems, but he does not think a large number of people find themselves in need of assistance due to gambling.
"If people are low-income, they simply have little money," he said. "We do see people with substantial income who don't manage money well, which sometimes includes gambling, and we help those folks, too."
Beal said Nevada FCU is the only financial institution in the state that sponsors the Nevada Council on Problem Gambling. He said the credit union prints the Council's telephone number on all of its statements and ATM receipts.
"If they hit the ATM in the casino for $100, they have the hotline number right in their hands-that's the reason we did it."
Of greater import than gambling, Beal believes, is what he termed the "preponderance" of payday lenders and title loan companies in the area.
"They are everywhere, in all cities, but there is a pretty significant population here that is not low-income but does not do a good job of managing their money. That is where we come in."
Nevada FCU offers its members a second-chance checking program and other products such as a payday loan alternative-in amounts ranging from $500 to a few thousand dollars for emergencies-at what Beal described as a "reasonable" rate.
"It is a lot better than payday loans. Also, we do car loans for 'B' and 'C' credit. These are for people who haven't managed their accounts well in the past and need help," he told Credit Union Journal. "One of the most significant ways credit unions can help is to help people who have not managed their money well. People are getting ripped off."
Beal said he is aware Las Vegas has attracted many affluent residents. "The other side is, there are a lot of low-wage jobs such as room attendants and busboys who don't make as much money as other folks in the industry," he said. "There is a disparity, and there is a significant population of unbanked."
To help those in need, Beal said Nevada FCU has a full-time outreach manager on its payroll who works with 30 local social service agencies.
"We provide financial services such as a first-time homebuyer program and special checking accounts for the underserved. A household income of $45,000 per year or less qualifies members for 'essential checking,' which has no monthly service fees."
In addition, Beal said Nevada FCU works with five elementary schools in at-risk areas and participates in food drives and holiday gift drives. "In many cases, employees participate on their own, which is good. Every other month, we do a blood drive."
Dave Rhamy, CEO of Silver State Schools CU helps the underserved population here through schools that are in low-income neighborhoods.
"We've adopted several elementary schools," he reported. "We do fundraisers, we give backpacks to students, serve meals, and send Santa Claus to the schools at Christmas. Many students in these schools won't get many presents, so our employees buy gifts for them. All year round, our employees read to students. We keep everything education focused, because that is our area."
As recently as six months ago, Cumorah Credit Union's membership was limited to members of the Latter Day Saints [Mormon] Church throughout the state. In December, Cumorah merged with a small credit union in neighboring Henderson, Nevada, which allowed it to add anyone who lives or works in the city.
"Since we now have the city of Henderson, we are looking at opportunities to become involved in the revitalization of downtown said CEO Henderson," said CEO Tony Mook. "Other opportunities include urban renewal areas in Henderson where businesses closed and a new commercial district is being created."
CEO Dan Paulson of WestStar CU noted his credit union serves gaming employees, not the entire community, but added, "That means people sweeping the floors on up to the casino executives. We have some credit-challenged members, and we offer them second-chance checking or Visa accounts in an attempt to get them back on their feet and back to regular products. Some of our members are not making much money. We are not in every walk of life."
READER RESOURCES
For more information on the credit unions featured in these two stories:
* Silver State Schools CU at www.silverstatecu.com
* Nevada FCU at www.nevadafederal.org
* Cumorah CU at www.cumorahcu.org
* WestStar CU at www.weststar.org
For other CU Journal stories on these credit unions, go to www.cujournal.com and type in the name of the credit unions in the search function.
