Company Chartering a Credit Union to Finance Loans to Its Customers Raises Policy Concerns "Credit News 24"
A clean energy company is looking to charter a new credit union to fund clean energy loans for its customers.According to BizWest, Namasté Solar, an employee-owned solar-energy firm, has been working about three years to secure a federal charter.
Blake Jones, co-founder of Namasté Solar, stated that the he expects "to receive our charter sometime this summer."
Part of its motivation to start a credit union is due to the difficulty its customers have in securing loans for clean-energy projects.
Namasté Solar designs, installs and maintains solar-electric systems throughout the United States for commercial, nonprofit, government and residential customers.
If a charter is granted, the credit union will finance residential and commercial solar installations. Also, loans will be made for purchases of used electric vehicles and energy-efficient home-improvement projects.
While the credit union will be located in Colorado, it will operate nationwide.
However, it seems that the primary purpose of the credit union is to finance Namasté Solar projects to future customers.
Unfortunately, being a customer of this clean energy company is not a valid common bond.
But I suspect the National Credit Union Administration can creatively identify an association that would allow customers of the company to become eligible for membership.
Moreover, this proposed credit union charter raises a policy concern as it appears to breach the separation between banking and commerce.
In closing, this proposed credit union should not be allowed to become nothing more than a captive finance company of this clean energy company.
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