* From a press release…
In 1995, Credit Union 1 introduced an “Employee Loan Assistance” program designed to provide payroll gap assistance for its members facing the threat of a missed or delayed paycheck. In June 2007, this program was utilized for the first time to assist state employees that incurred a delayed paycheck due to the Illinois budget crisis that occurred. Most recently, Credit Union 1 offered the program to their members of the Illinois General Assembly and staff to assist during an interruption in the legislative payroll cycle.
Credit Union 1 is stepping up once more to help their members as the threat of a delayed paycheck for State employees looms again. While fortunately this program has only been needed on a limited basis since its inception, Credit Union 1 members are afforded great comfort and security in knowing that their credit union is there for them whenever the need arises.
For more information about the terms and conditions associated with the program please contact your local Credit Union 1 branch. Credit unions are “People Helping People” — dedicated to serving the needs of their membership as well as providing “peace of mind” that the credit union is always there. And that’s the credit union difference.
*** UPDATE *** This should help clear up some questions…
Illinois State Employees Loan Assistance Program
Credit Union 1 is pleased to provide assistance to the Illinois State employees should the State of Illinois budget issues temporarily delay payroll for the employees, through our Loan Assistance Program (LAP).
• Credit Union 1 will offer members a loan with an interest rate of 0.00% APR1 during the Assistance Period.
• The Loan Assistance Program does not apply to State contracted individuals or agencies.
• You must be a Credit Union 1 member as of 5/1/15 to be eligible for the LAP. New members, and existing members after 5/1/15 can apply for a loan under our normal rates and terms.
To apply, stop by a Credit Union 1 branch or call our Member Service Dept. at (800) 252-6950, option 3.
APR= Annual Percentage Rate. Rates, terms and conditions are subject to change and may vary based on creditworthiness and qualifications. All loans subject to approval.
LAP Loans may not exceed 50% of the member’s gross salary that has been delayed. The interest rate will be 0.00% APR during the Assistance Period. At the end of the Assistance Period, the interest rate shall become 9.90% APR and member will have 30 calendar days to repay the entire balance owed. If the entire balance is not paid within 30 calendar days after the Assistance Period has ended, the entire balance owed shall convert to a repayment term no greater than 48 months at 9.90% APR and requires a minimum monthly payment of $100.
The “Assistance Period” is defined as the time period that a member is not receiving a paycheck from the employer and until the 31st calendar day after their payroll is reinstated by the employer.