Payday Pundit

In her latest column, Michelle Singeltary of the Washington Post writes about a new initiative encouraging Americans to be thrifty and save.

Note that one of the recomendations listed in her column is to “Encourage financial institutions to locate in low- to moderate-income neighborhoods and provide low-interest consumer loans. For example, in Appleton, Wis., the Prospera Credit Union has teamed up with Goodwill Industries of North Central Wisconsin to create GoodMoney, where consumers can get short-term loans much cheaper than they can get from a payday lender.”

Payday Pundit wants to point out that the Goodwill/Prospera credit union ( non-profit, tax-expempt) charge $9.90 per $100 borrowed (252% APR) for their “Good Money” payday loan.  And this is only to break even.  

Even the Goodwill payday loan alternative could not be offered under the rate caps being proposed in states like Ohio.