CU Rolling Out Payday Lending Alternative Nationwide
November 18, 2008 | alternatives, industry | Comments (0)While the Payday Pundit is all for MORE choices for consumers, all the hype about the GoodMoney payday loan fails to mention one thing…the fee is $9.90 per $100 for two weeks. THAT’S A 252% APR! Even GoodMoney cannot be offered under a 36% APR.
CU Rolling Out Payday Lending Alternative Nationwide
November 17, 2008
APPLETON, Wis. — The $145 million Prospera Credit Union has begun to offer the model for its successful payday alternative lending program to other credit unions nationwide.
Prospera has partnered with Goodwill Industries of North Central Wisconsin to offer GoodMoney, an alternative to payday loans at Goodwill store locations, which also provide check cashing and wire transfers at affordable rates. From its first location that opened in 2005, the program has grown to five locations.
So far, two other credit unions, Superior Choice Credit Union, Superior, Wis., and Delta County Credit Union in Escanaba, Mich., have also started to GoodMoney programs with Goodwill organizations in their areas.
“GoodMoney provides lower cost alternatives to consumers looking for a short-term loan. More importantly, the program encourages financial education, creating a more informed borrower, and access to other financial products to increase their financial stability,” said Lois Kitsch, national program director for the National Credit Union Foundation’s REAL Solutions program.
The National Credit Union Foundation gave Prospera credit union $75,000 in 2006 to help the CU further develop and promote the program.
“We didn’t make any money on it” says credit union
April 10, 2008 | South Carolina, The Herald (SC), alternatives, industry, media coverage, states | Comments (1)Can you guess what the IT is? Their short-term payday loan “alternative” of course. The Herald Newspaper of South Carolina discusses the Family Trust Federal Credit Union’s experience with short-term loans briefly in this story.
Credit Union official tells truth about small loan program
April 7, 2008 | Milwaukee Journal Sentinel, Wisconsin, alternatives, industry, media coverage, states | Comments (0)In the interesting article in the Milwaukee Sentinel, Eric Richard of the Credit Union National Association, argues against regulating credit unions like banks. One of the reasons?
Richard said credit unions sometimes will provide services to members even if they know they won’t necessarily make money. Fast-cash loans as an alternative to payday lenders is one example.
“We are not profit maximizers,” Richard said. “We don’t try to maximize our return on assets or returns to investors. There are different ways you regulate the different kinds of institutions.”
Of course, the payday lending industry happily competes with all comers, even against credit unions that offer unprofitable services.
Do Ohio credit unions offer cheaper short-term loans?
March 1, 2008 | Ohio, Springfield News Sun, alternatives, industry, media coverage | Comments (0)The story below describes how credit unions in Ohio are getting into the short-term loan business. One credit union is offering an 18% loan, BUT with a $35 sign-up fee. The reporter didn’t bother to calculate the total cost of that type of loan compared to a payday advance. Lisa Ferguson of Checksmart Financial, a CFSA board member company, is quoted giving the industry point of view.
http://www.springfieldnewssun.com/hp/content/oh/story/news/local/2008/03/01/sns030208loans.html
