Rock Island Arsenal Credit Union

Press release submitted by Quad Cities Interfaith

Quad Cities Interfaith will host an event to introduce its latest effort to combat predatory lending in the Quad Cities: a brochure that warns against payday loans and offers viable alternatives for affordable credit. The new brochure will be unveiled Thursday, November 20, 2008 at 4:30 pm at Café on Vine, 932 West 6th Street, Davenport, Iowa. Light refreshments will be served.

Five credit unions have joined Quad Cities Interfaith in developing this brochure: Ascentra Credit Union, DHCU Community Credit Union, The Family Credit Union, IH Mississippi Valley Credit Union and Rock Island Arsenal Credit Union. These credit unions have joined QCI to do all what they can to help people in our communities gain access to fair credit.

In recent years, many low and moderate-income people in this community have relied on payday or other high interest rates loans for their short-term needs. Usage of these types of loans will likely increase with the growing economic crisis and the tightening of access to credit. The brochure educates the public about high interest rate loans and highlights loans available through these credit unions with interest rates of up to 21% as compared to predatory loans in which interest rates can exceed 350%.

“This is our first step to helping people who are in a state of confusion and depression concerning their funds. The next would include urging our legislators in both Iowa and Illinois to limit the interest any entity can charge on a payday or other loan, ” says Rita Cunningham, coordinator of this project. Currently five states: Arkansas, Maine, South Carolina, Ohio and Arizona limit interest rates on pay day loans.

The project includes plans to distribute the brochures to local social service agencies throughout the Quad Cities.

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