US Federal CU to participate in non-prime auto lending pilot
Hispanic Business © 04/21/2014 – WASHINGTON, D.C. – The National Credit Union Foundation, (NCUF) in partnership with Filene Research Institute, announced today that the product incubator for Non-Prime Auto Loans, is full with 14 credit unions across the country participating. Non-Prime Auto Loans, an NCUF product, is one of five products in the Filene Research Institute’s accessible financial services incubator funded by theFord Foundation.
“Credit unions have a long history as being the proving ground for consumer centric, innovative financial products,” said Cynthia Campbell, director of innovation labs at Filene, “and partnering with the NCUF to test the viability of Non-Prime Auto Loans with mainstream financial institutions was a natural fit since their experience in working with low-to-moderate income consumers is extensive.”
88% of Americans drive to work. Without a car, options for work, food, childcare and healthcare become limited. Economic mobility is strengthened through the mobility that comes with affordable, reliable wheels. This product increases access to affordable auto loans to those who have credit challenges.
“Estimates say that families can increase their income by as much as 25% with access to reliable transportation,” said Gigi Hyland, NCUF Executive Director. “We’re excited to work with not only Filene on this project but also such a wide array of credit unions across the country to give affordable, safe and reliable used cars to those that need them most.”
The following credit unions will be testing the Non-Prime Auto Loan product:
- CALCOE FCU in Yakima, Wash.;
- Cy-Fair FCU in Houston, Texas;
- Denver Community CU in Denver, Colo.;
- EECU in Fort Worth, Texas;
- Freedom First CU in Roanoke, Va.;
- Laramie Plains Community FCU in Laramie, Wyo.;
- Missoula FCU in Missoula, Mont.;
- SchoolsFirst FCU in Santa Ana, Calif.;
- Seasons CU in Middletown, Conn.;
- Shreveport FCU in Shreveport, La;
- Soo Coop CU in Sault Ste Marie, Mich.;
- Summit CU in Madison, Wis.;
- University CU in Austin, Texas; and
- US FCU in Burnsville, Minn.