JPMorgan Chase, Bank One to Work With Credit Unions on Alternatives to Payday Loans
June 23 2004 - 10:00AM
PR Newswire (US)
JPMorgan Chase, Bank One to Work With Credit Unions on Alternatives
to Payday Loans CHICAGO, June 23 /PRNewswire-FirstCall/ -- The
Foundations of JPMorgan Chase and Bank One today announced a
$400,000 grant to work with community development credit unions to
create and expand alternatives to high-cost "payday" loans for
consumers. The grant will enable the banks to work with the
National Federation of Community Development Credit Unions to
identify member credit unions in Illinois, New York, Texas and two
other states in a pilot program to help low-income consumers who
need short-term loans to carry them over until their next paycheck.
Currently, they have few choices beyond paying high fees and rates
to check cashers and finance companies for loans as short as a week
or two. "We want to help consumers keep more of their hard-earned
money," said Lewis Jones, president of The J.P. Morgan Chase
Foundation. "We are committed to finding workable alternatives and
making them available for consumers." The grant was announced today
at the convention of the National Community Tax Coalition, which
helps working families work their way through the complicated
earned-income tax credit to receive the valuable tax refunds they
are due. The Bank One Foundation has been a long-time supporter of
the Center for Economic Progress, which convenes the Tax Coalition
convention. "Payday loan alternatives will help many of these same
consumers get a better deal through both more affordable loans and
financial education," said Cliff Rosenthal, executive director of
the Federation. "Working with a long-time partner, JP Morgan Chase,
and a new partner, Bank One, we will make a major financial
difference for these consumers and families." Later this summer,
the Federation will seek proposals from member credit unions to
develop alternative loan products in five states. Each of the five
selected credit unions will receive $50,000 -- half for a loan-loss
reserve and half for financial education and counseling and other
expenses. They would launch yearlong programs in early 2005, with
full results and analysis expected in the spring of 2006. The
Chicago-based North Side Federal Credit Union, which has made
affordable short-term loans to its members in Chicago, will receive
$50,000 from the grant to provide technical assistance to program
participants. The remaining $100,000 will cover startup and
monitoring costs, as well as third-party analysis. The National
Federation of Community Development Credit Unions is a nonprofit
organization representing more than 225 credit unions nationwide
that specialize in serving low-income communities. The holding
companies of JPMorgan Chase Bank and Bank One plan to complete
their merger July 1. Bank One Corporation (NYSE:ONE) (
http://www.bankone.com/ ) is the nation's sixth-largest bank
holding company, with assets of $320 billion. Bank One currently
has more than 51 million credit cards issued, nearly 7 million
retail households, and approximately 20,000 middle market
customers. It also manages $188 billion of clients' investment
assets. J.P. Morgan Chase & Co. (NYSE:JPM) (
http://www.jpmorganchase.com/ ) is a leading global financial
services firm with assets of $801 billion and operations in more
than 50 countries. The firm is a leader in investment banking,
financial services for consumers and businesses, financial
transaction processing, investment management, private banking and
private equity. A component of the Dow Jones Industrial Average,
JPMorgan Chase is headquartered in New York and serves more than 30
million consumers nationwide, and many of the world's most
prominent corporate, institutional and government clients.
DATASOURCE: Bank One Corporation; J.P. Morgan Chase & Co.
CONTACT: Tom Kelly of Bank One, +1-312-732-7007, or ; or Catherine
Keary of JPMorgan Chase, +1-212-270-7171, or Web site:
http://www.jpmorganchase.com/ http://www.bankone.com/
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