http://www.washingtonpost.com/wp-dyn/co ... 01881.html

Credit Unions Open Branch For Latinos

By Krissah Williams
Washington Post Staff Writer
Saturday, February 25, 2006; D01

Three local credit unions will open a joint branch tomorrow to serve the Latino community in Mount Pleasant in an effort to lower prices for financial transactions in the neighborhood.

District Government Employees Federal Credit Union, the Organization of American States Staff Federal Credit Union and IDB-IIC Federal Credit Union, a credit union affiliated with the Inter-American Development Bank, are calling the branch Acceso, "access" in Spanish. They want to draw Hispanic customers from the fee-charging check cashing and money transfer companies that many immigrants rely on.

"Our mission is to bring those folks who are under-banked and underserved to the financial mainstream," said OAS credit union president Carlos R. Calderón.

The credit unions -- which are nonprofit -- said they are trying to adapt their prices and policies to meet the needs of Latino immigrants in the neighborhood. For example, Acceso will accept foreign identification cards, such as those issued by Mexico's consulate, so undocumented immigrants can become members and open savings accounts. Loan officers will evaluate credit risk for auto and home loans not just through credit reports, but by taking into account if applicants pay rent on time or send money home regularly.

Mount Pleasant and nearby Adams Morgan and Columbia Heights are about 25 percent Hispanic and at least half of the residents there do not have bank accounts, according to estimates by the District Government Employees Federal Credit Union based on a neighborhood survey conducted in 2004.

Yet, about three-fourths of the District's Latino immigrants send money to relatives regularly, according to the Inter-American Development Bank. For about $9, members will be able to send up to $1,000 to Mexico, a fee lower than the industry average. Western Union charges $30 to send that amount, according to the company's Web site.

If this branch is successful, credit union officials said they would like to expand Acceso into other Latino communities in Virginia and Maryland.

Money transfer and check cashing firms say established customer relationships and longer business hours will make them competitive despite lower credit union prices.