Payday Pundit wants to shout from the rooftops…
May 27, 2008 | alternatives | Comments (1)
Even credit unions and charities could not offer payday loans under annual percentage rate caps of 24%, 28% or 36%!!!!
Take, for example, the model, award-winning payday loan alternative being offered by GoodWill in partnership with Prospera Credit Union. From Michelle Singletary’s recent column:
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.
GoodWill/Prospera charge $9.90 per $100 for the two-week loan. That’s a 252% APR. Yes, it is a few dollars cheaper than a traditional payday loan ($15 per $100), but they don’t have to pay taxes or make a profit. Makes sense they can charge a few dollars less. That said…an annual rate cap bans this “alternative” as well.
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[...] We’re also curious as to just why you feel other services haven’t “step[ped] up” on this issue. It would seem fairly obvious to us that it is because payday lenders offer a financial service that is competitively priced. [...]