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CHOICES FEDERAL CREDIT UNION by fanzhongqing

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									CHOICES FEDERAL CREDIT UNION
5029 Northrup Avenue
CHOICES FCU
• Alternative Financial Services:
  –   Check Cashing Stores
  –   Pay Day Loan Stores
  –   Title Loan Stores
  –   Pawn Shops
  –   Used Auto Dealerships
  –   Predatory Lenders

• Drain Resources from the Community
  –   High Fees
  –   High Interest
  –   High Penalties
  –   Credit Life Insurance
CHOICES FCU

• Results:
  – Overleveraging
  – Delinquencies & Defaults
  – Foreclosure
  – Damaged Credit
  – Bankruptcy
     • Chapter 7 (no assets)
     • Chapter 13 (debt reorganization)
CHOICES FCU
• Credit Unions
  – Associative or Community Membership
  – Share Deposits
  – Loans (secured and unsecured)
     • Signature
     • Auto
     • Home
  – Financial Services
     •   Savings
     •   Check Cashing
     •   Credit/Debit Cards
     •   ATM
CHOICES FCU
• Organized by 8 Housing and Financial
  Counseling Organizations
  – Better Family Life
  – Beyond Housing/NHS
  – Community Action Agency of St. Louis County
  – Catholic Commission on Housing
  – Good Samaritan Service Center
  – Habitat for Humanity St. Louis
  – Justine Petersen Housing & Reinvestment
  – Urban League of Metropolitan St. Louis
CHOICES FCU
•   Received NCUA Charter – Feb. 2005
•   Opened Doors – July 2005
•   Members to Date: 76
•   Deposits to Date: $93,814
•   Loans to Date
    – Auto: 2
    – Signature: 6
• Grants Received
    – Annie E. Casey Foundation: $25,000
    – CDFI Technical Assistance: $49,500
CHOICES FCU

• Challenges
  – Membership
  – Facilities
  – Staffing
  – Operating Funds
  – Loan Origination
  – Reserves
  – Positive Net Worth
CHOICES FCU
• Measures of Success
  – One Person at a Time
    • Habitat client: unable to qualify for program
      because of high debt to income ratio. Auto loan at
      21% interest. Able to refinance auto loan to lower
      rate to bring her in line with debt ratio requirement.
      She is on her way to purchasing a Habitat home.
  – Long Term
    • Improve Credit
    • Build Assets
    • Strong Communities

								
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