Confused about credit union alternatives in Nevada
April 15, 2009 | alternatives, industry | Comments (1)An article in the Las Vegas Review Journal criticizes payday lenders and applauds credit unions for offering payday loan alternatives.
“The problem with payday loans is that every payday you’re broke again,” said Brad Beal, president of Nevada Federal. “It’s a vicious cycle.”
- Nevada Federal Credit Union offers “ADVANCpay.” All loans, regardless of size, come with a $60 application fee ($70 if you don’t have direct deposit) for the two-week loan.
- Community One Federal Credit Union offers PayDayCHOICE. These loans range from $300 to $700 and come with a fee of $15 per $100 loaned PLUS an 18% APR. Direct deposit is required.
In comparison, for-profit payday lenders in Nevada typically charge $15 to $17 per $100. While payday lenders are happy to compete for business, why do these alternatives deserve applause?
Comments»
These sound like good alternatives. Competition is the best regulator.