The National Credit Union Foundation, in partnership with Filene Research Institute, highlighted that 14 credit unions across the country are participating in a product incubator for non-prime auto loans.
The following credit unions will be testing the non-prime auto loan product:
—CALCOE FCU in Yakima, Wash.
—Cy-Fair FCU in Houston
—Denver Community CU in Denver
—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
—US FCU in Burnsville, Minn.
These non-prime auto loans are one of five products in the Filene Research Institute’s accessible financial services incubator funded by the Ford 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.”
NCUF noted that 88 percent of Americans drive to work. Without a vehicle, NCUF executive director Gigi Hyland acknowledged that options for work, food, childcare and healthcare become limited.
Hyland insisted economic mobility is strengthened through the mobility that comes with affordable, reliable wheels, and this product increases access to affordable vehicle loans to those who have credit challenges.
“Estimates say that families can increase their income by as much as 25 percent with access to reliable transportation,” Hyland said.
“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,” she went on to say.