BRANCH OF THE VINCENTIAN FAMILY INVOLVED IN THE PROJECT: SSVP, East St. Louis
NAME OF SYSTEMIC CHANGE PROJECT: Banking for the Poor (Payday Lending)
PROJECT ADDRESS: #13 Vieux Carre Drive, PO Box 3310, East St. Louis, MO
CONTACT PERSON: Pat Hogrebe
LENGTH OF TIME THE PROJECT/PROGRAM HAS BEEN IN EXISTENCE: one year
Catholic & Community Credit Union and the Society of St. Vincent de Paul, Belleville Office partner to offer payday loans up to $300 for persons in need. They started this partnership to address the needs of the working poor, many of whom need payday loans of up to two weeks at low interest rates. Payday loans offered privately are expensive and prey on people who feel trapped. The SSVP program offers 3% interest rate, flexible repayment and finance education.They raised $15,000 to start the program, then reached out to the Catholic & Community Credit Union for implementation.
Potential borrowers go to St. Vincent de Paul and fill out an application. SSVP reviews the application with the assistance of the credit union loan officers. If approved, SSVP pays the $25.00 savings account fee or share fee of the credit union and a $300 loan is made to the borrower from the $15,000 fund. Borrowers participate in a budgeting class and are taught how to save money. The program also provides mentors for borrowers so they can learn new habits. After successfully completing the budgeting class, the borrowers receive a $5.00 grocery gift card. The 3% interest goes back into the loan fund with the hopes of creating greater resources for more loans. For those who do not qualify due to enormous debt, lack of or insufficient income or dishonesty, they are directed to consumer credit counselors and other sources of assistance.