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News Release
Texas Access to Justice Foundation AUSTIN, Texas – North
East Texas Credit Union is the newest member of the Texas Access to Justice
Foundation’s
Prime Partner Bank
program. Prime Partner banks and credit unions voluntarily pay higher
interest rates on Interest on Lawyers’ Trust Accounts (IOLTA) and have a
direct impact on the amount of money available to help low-income Texans
with their civil legal issues. The Texas Access to
Justice Foundation receives funding from IOLTA accounts—a method to fund
legal aid by collecting interest on client trust accounts—and uses this
money to distribute grants to legal aid providers in the state, which help
more than 100,000 Texas families each year. Prime Partner financial
institutions currently pay 1 percent on IOLTA accounts, which is above and
beyond the eligibility requirements for banks participating in the IOLTA
program. “By making the choice to
pay higher interest rates on IOLTA accounts, North East Texas Credit Union
and our other Prime Partners help ensure that low-income Texans will have
access to basic civil legal services,” Richard L. Tate, chair of the board
of directors for the Texas Access to Justice Foundation, said. “Many Texans
face serious legal issues, such as foreclosures or domestic violence
situations, and simply do not have the funds to hire an attorney.” North East Texas Credit
Union serves six communities through seven locations in Daingerfield, Diana,
Hughes Springs, Jefferson, Lone Star and Mt. Pleasant. It is now one of
nearly 60 financial institutions that participate in the Prime Partner
program throughout the state. “North East Texas Credit
Union is committed to serving and helping our local community,” President
Kay Stewart said. “We are proud to become a Prime Partner and hope the
additional funds generated will make a significant difference in the lives
of disadvantaged Texans in need of civil legal services.” More than 5.8 million
Texans qualify for legal aid, and the increasing civil legal needs of the
poor continue to outpace the funding available for civil legal services.
Legal aid offices assist in matters dealing with family, housing, employment
and consumer law, and those recovering from the effects of natural
disasters. Lone Star Legal Aid and
Disability Rights Texas are among several legal aid programs in the area
that receive funding from the Texas Access to Justice Foundation. The Texas Access to
Justice Foundation has seen more than a 75 percent decline in IOLTA revenue
since 2007 due to the impact of low interest rates. Prime Partners help to
mitigate the decline in revenue available to fund legal aid. See a current list of
Prime Partner banks in Texas at:
http://www.teajf.org/financial_institutions/prime_partners.aspx
-30- The Texas Access to
Justice Foundation (www.teajf.org), created by the Supreme Court of
Texas in 1984, is the leading state-based funding source for the provision
of civil legal aid in Texas. The organization is committed to the vision
that all Texans will have equal access to justice, regardless of their
income. The Foundation administers a variety of funding sources, which are
earmarked to assist nonprofit organizations in providing legal aid to
more than 100,000 Texas families each year.
Contact: Kimberly Schmitt512-320-0099, ext. 104 kschmitt@teajf.org
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