Virginia program not a moneymaker
January 22, 2010 | alternatives, industry | Comments (1)From today’s Washington Examiner:
One of Virginia’s largest credit unions has received a boost lately thanks to state employees who must join its ranks under a new state loan program.
Operating the Virginia State Employee Loan Program, the Virginia Credit Union has seen an uptick in membership partially because state workers must join the group to access the short-term aid. The initiative, touted as an alternative to traditional payday lenders, has provided more than $1.3 million in loans to nearly 2,800 state employees — at a 25 percent interest rate.
Virginia Credit Union officials say the programis a way to meet the financial demands of state employees, not pad membership.
When asked if the program stimulated the credit union, spokesman Glenn Birch said, “Absolutely not,” adding, “The program is not a moneymaker at all.”
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Glenn Birch says “Absolutely not….The program is not a moneymaker at all.”
The 36% cap people should take notice of this b/c it’s true. The people that want to cap rates at 36% have not idea of the defaults in this industry.