CACU Gets Publicity for Grant-funded Auto Loan Refinancing Program (Misc News: February 22, 2012)
A Detroit credit union is taking advantage of a $1.5 million grant to help credit-challenged members refinance high-interest car loans.
Dubbed the Auto Bailout Loan, Communicating Arts CU in Detroit is helping people who are paying interest rates as high as 25 percent to save on their auto loans.
"A lot of people don't think they have other alternatives," Hank Hubbard, president and CEO of Communicating Arts CU, told The Detroit Free Press.
Last summer, CACU was awarded $1.5 million from the U.S. Treasury’s Community Development Financial Institution Fund, the third year in a row that the credit union has landed the grant.
As of last week, Communicating Arts had made 19 Auto Bailout Loans totaling nearly $313,000.
One Detroit woman had been paying 20.95 percent for a car loan rate but was surprised to learn that she qualified for a rate of 3.5 percent under the refinancing program, Hubbard said said.
Another customer cut a car loan rate by more than half from nearly 25 percent to 11 percent.