LITTLE ROCK, Ark., and SALEM, Ore. (6/4/15)--Add Arkansas and Oregon to the list of states that now allow credit unions to offer prize-linked savings (PLS) programs to their members.
In Arkansas, Gov. Asa Hutchinson recently signed the Cornerstone Credit Union League-supported HB 1642, or the Arkansas Savings Promotion Act (Leaguer June 3).
As a result, credit unions can offer a program that encourages positive savings behavior by giving members chances to win cash prizes for each time they put a set amount of money into a savings account.
Not all members win the cash, of course, but they are guaranteed to come away with a sturdier savings account and improved savings habits.
“ACT 589 of 2015 adds a new dimension to the bingo and raffle law that was enacted in the state of Arkansas several years ago, legalizing raffles and bingo for nonprofit organizations,” said Arkansas Credit Union Association President Reta Kahley (Leaguer). “This act now allows credit unions and other financial institutions the opportunity to create for their depositors savings incentive programs that offer prizes and other promotional items for specified savings programs.”
Late last month, Oregon also joined the list of now 14 other states that have authorized credit unions to offer PLS accounts.
The law, supported throughout the legislative process by the Northwest Credit Union Association, becomes effective Jan. 1, 2016 (Anthem June 1).
A bill authorizing PLS accounts in Texas awaits the signature of Gov. Greg Abbot, while similar legislation is pending in New Jersey, Pennsylvania, Illinois, Massachusetts, North Carolina and South Carolina.