Credit unions not “willing or able to fill the entire void.”
November 18, 2008 | alternatives, industry | Comments (0)Wait. What? Credit unions can’t serve all payday lending customers if payday lenders are forced to close? Who knew? From the Arizona Republic…
If payday lending becomes more scarce down the road, credit unions won’t be willing or able to fill the entire void.
Payday-loan customers tend to be higher-risk, lower-margin borrowers. Credit unions can’t afford to serve everyone in this market if it undermines their strength. As it is, about 40 percent of Arizona’s credit unions are losing money.
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