Credit Union “payday loan” toolkit
April 7, 2009 | Uncategorized | Comments (0)A new toolkit created by the National Credit Union Association helps credit unions offer payday loan alternatives. We in the payday lending industry are all for competition and support these efforts, but do think credit unions need to be clearer about their fee structure for payday loans. For example, with few exception, they claim to offer payday loans at 18% APR. But…they don’t include the application fees or annual fees in that calculation. When comparing a credit union payday loan to a traditional payday loan, it’s important that the TOTAL cost of the loan be fully transparent to the customer. Customers need all of the term and fee information to make an informed decision.
Of note, one of the model payday loan alternatives featured is the Prospera Credit Union’s GoodMoney loan. For the two-week loan, customers pay $9.90 per $100 (252% APR).
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