Employees in California are facing a gigantic pay cut since the budget has yet to be passed. California's governor has asked that all salaries be cut to federal minimum wage until a budget is passed. Some banks and credit unions are offering a pay day to these employees, including no-interest installment payday loans.
Source of article: California state employees offered low cost loan opportunities by Personal Money Store
Cutting pay in California
The state of California hadn't passed a spending budget when their fiscal year began on July 1. Without actually passing a budget, California is going to have a $ 19.1 billion spending budget deficit . Until the spending budget for California is passed, the governor has asked that all state employees have their wages reduced to the federal minimum. The state budgeting and payroll system, though, needs an overhaul and state Controller John Chiang said the reduction wouldn't be possible.
Banks and credit unions offer employee "impasse" loans
Bank of America and Wells Fargo have began offering no faxing payday loans called “budget impasse” products. The loans are quite much offered without a credit check and no interest. These loans either provide money or extended credit to state employees. When a state budget is passed, eventually, the employees will get a retroactive payment they can use to settle these loans.
Qualifying for impasse loans from banks
Employees who need to get a personal loan aren’t quickly qualifying for zero-interest loans from these banks. The financial institution has to have an existing account with the employee. Given that California has only passed a balanced budget by the beginning of the fiscal year in 10 of the last 34 years, it is not surprising that many banks have created solutions to help employees that are left within the dust.
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