Diane Powell, Communications Director for the Pennsylvania
Credit Union Association (PCUA), told RTO Online the $20 million
would be used in part to cover credit union losses.
Diane Powell, Communications Director for the Pennsylvania
Credit Union Association (PCUA), told RTO Online the $20 million
would be used in part to cover credit union losses.
The taxpayer funded deposit will be reviewed by the state
annually and can be withdrawn anytime, reinforcing the view that
this unprecedented use of tax dollars is purely political in
nature. Credit Union National Assn (CUNA) is the 7th largest PAC
contributor to federal candidates in 2005 - 2006.
There is little or no oversight for use of the $20 million. There are no
requirements issued by the state as to how many loans must be
made. In fact, according to Powell, there are no state
requirements whatsoever. It is up to state credit unions to
decide how to use the funds. In addition to covering consumer
loans, Powell said that interest on the $20 million would be
used for marketing the program to Credit Union members.
Powell stated that, in her memory, there has never before been a
deposit of taxpayer funds in a private institution to cover
consumer loans of this type.
Credit unions around the country have been eagerly developing
convenient, short-term credit products to cash in on the quickly
growing payday lending market. After having found themselves
without the ability to fairly compete, Pennsylvania credit
unions dipped into the election year taxpayer piggy bank for backing - and
Treasurer Robert P. Casey, running
against Rick Santorum for the Senate, was only too eager to
comply.
