Triangle Latino Credit Union Opens With Over $2.5 Million in Backing From Local Financial Institutions, Churches, and Community Groups.

Business Editors

DURHAM, N.C.--(BUSINESS WIRE)--June 26, 2000

A new credit union opened in Durham today to provide affordable financial services to the area's growing Latino population.

The Latino Community Credit Union (LCCU) will be the first financial services institution in North Carolina aimed at Latinos and only the second such credit union chartered in the Southeastern U.S.

At a grand opening celebration today in Durham, credit union organizers described the challenges faced by Latinos in accessing financial services.

"Latinos are often locked out of the economic system because of language and cultural barriers," said Ivan Parra, Executive Director of El Centro Hispano. "Then they become victims of theft or fraud, pay too much for check-cashing and other services, and can't establish the credit histories they need to buy a home. The new credit union will be a way to build wealth in our community." El Centro Hispano, which is one of LCCU's founders and will operate the credit union, is a nonprofit providing support and education to Latino residents in the Triangle.

The new credit union will provide savings and checking accounts, worldwide ATM and money order services, wire-transfers, and consumer loans to its members. Fees for these services will be low, especially important to low-income families struggling to gain an economic foothold.

For example, check cashing and statewide ATM access for members is free, and wire transfers cost $10 for amounts up to $5,000 (compared with charges as high as 10% of the amount wired charged by some other firms). LCCU also will offer a financial literacy program to introduce its members to mainstream financial services.

The credit union has a bilingual staff and materials available in both English and Spanish, and membership is open to all people in the Triangle.

"Today we're celebrating a "commencement" of sorts," said Rep. David Price during the grand opening celebration. "Today's festivities are the culmination of two years of effort by Latino leaders to establish a financial services institution that meets the community's needs. The opening of the Latino Community Credit Union represents an opportunity for the Triangle's Latino residents to share in the area's prosperity and create a better life for themselves and their families."

Local Latinos have been enthusiastic about LCCU's start. "For me, this is peace of mind," said Durham resident Laticia Sota. "I feel better about my family's safety, and now we can start saving for a more secure future, too." Sota submitted her LCCU membership application yesterday at a fiesta organized by El Centro Hispano to introduce the new credit union to the Latino community.

An array of foundations, banks and credit unions, community groups, and churches have supported the effort to launch LCCU, and collectively have committed over $2.5 million in deposits to the credit union. "The extraordinary breadth of partners has enabled us to accomplish together what none of us could have done alone," said John Herrera, chair of LCCU's board of directors. "We think our experience can be a model for building Latino credit unions across the nation." In addition to garnering deposits and in-kind support from over thirty organizations, El Centro Hispano received significant assistance in organizing LCCU from the NC Minority Support Center, NC State Employees' Credit Union, and Self-Help Credit Union.