Name of your credit union:  ASI Federal Credit Union

Name of innovative program:  Stretch Program

Brief description of program: ASI Federal Credit Union was receiving several calls per day from pay day lenders asking about their member’s checks.  In an effort to provide their members with an alternative to pay day lending they instituted the Stretch program.  The member is provided a loan up to $200 and is assessed a periodic fee for participation in the plan.  Members who have demonstrated they will repay can have their limit increased to $500.

They also have an asset builder loan the member can receive after 12 months of satisfactorily paying on the stretch loan.  The fee charged on the stretch loan goes into the member’s savings account which he or she may withdrawal once the balance on the loan is equal to the amount in the savings account.  The credit union has found that members using these loan products are not just low income members but members from varying income levels.  They have continually monitored the program and made changes to ensure the member is getting a product of value for the fees paid.

Contact person for program:  Sarah Taylor

     Phone number:  504-733-1733, ext. 2607