The National Association of Federal Credit Unions issued the following news release:

Sen. Daniel Akaka, D-Hawaii, last week introduced a bill that would help bring more unbanked consumers and those with low and moderate incomes to credit unions and other mainstream financial institutions.

Introduced July 31, the Improving Access to Mainstream Financial Institutions Act of 2008 is cosponsored by Sens. Charles Schumer, D-N.Y., Joseph Lieberman, I-Conn., and Daniel Inouye, D-Hawaii, and endorsed by NAFCU.

The bill would create two grant programs within the Treasury Department. The first would authorize grants to help low- and moderate-income, unbanked individuals open credit union or bank accounts. It would also provide consumers with alternatives to rapid-refund loans, check cashing services and lower-cost remittances.

The second program would encourage the development of affordable payday loan alternatives at mainstream financial institutions. Consumers who apply for these loans would be provided with financial literacy and educational opportunities. The loans would also be subject to the usury ceiling set under the Federal Credit Union Act, now at 18 percent.

Akaka said these financial resources will enhance financial institutions' ability to bank the unbanked. "This bill will also encourage banks and credit unions to provide an affordable alternative to predatory payday loans which typically carry exploitative fees," he added.

In related news, Akaka last week joined the line-up of speakers for NAFCU's Congressional Caucus, scheduled Sept. 14-17 at the Grand Hyatt in Washington. Credit unions attending this year's Caucus will be involved in lobbying Congress on credit union regulatory relief - which includes greater access to credit unions - and other financial services issues.

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