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CUs assist as California cuts state workers pay
SACRAMENTO, Calif. (7/30/08)--Credit unions in California are preparing to help their members as Gov. Arnold Schwarzenegger plans to sign an order to reduce pay for state workers to federal minimum wage until the state budget passes. About 22,000 temporary workers and retired annuitants also will be laid off until the budget is passed (Sacramento Bee July 28). To help its members who are employed as state workers, the Golden 1 CU, Sacramento, is offering loans at 0% annual percentage rate (APR) and 4.99% APR, depending on when members signed up for direct deposit. Members with direct deposit as of June 30 are eligible for the 0% APR loan, Teresa Halleck, Golden 1 CEO, told News Now. The credit union has about 100,000 state workers in its membership of 700,000. Since the executive order was reported in the press on Thursday, members have been calling the Golden 1. “Calls are up 5%,” Halleck said. “That’s 200 extra calls.” The credit union is prepared to handle the budget impasse, she emphasized. “Members know they can rely on us. We’re here for them.” Aside from the loans, the Golden 1 also offers Lifeline Advance, a payday loan alternative, Halleck said. Sacramento (Calif.) CU, also is preparing a special program to help its members who work for the state, Jim Kelly, vice president of retail and lending operations, told News Now. About 400 of the credit union’s members work for the state. Sacramento CU is creating a loan product at 0% interest for members who have direct deposit. The program is designed to help them for a few months until the budget passes, he said. The credit union also offers a skip-a-loan-payment program, which provides members with a one-time loan extension at no charge. Sacramento CU also is willing to work with members who don’t have direct deposit at the credit union on loans. “There are a number of programs out there,” Kelly said. “We make sure we’re here to take care of our members.”
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