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).

The Feds are serious.  Apparently, big announcements will be made today regarding new rules for credit card companies to end deceptive practices.  The Washington Post is playing it big, making it the top story of the day.  From the piece:

The proposed regulations, which could be finalized by year’s end, would label as “unfair or deceptive” practices that consumers have long complained about. That includes charging interest on debt that has been repaid and assessing late fees when consumers are not given a reasonable amount of time to make a payment. When different interest rates apply to different balances on one card, companies would be prohibited from applying a payment first to the balance with the lowest rate.

“It’s stronger than what has been issued in the past,” said William Ruberry, a spokesman for the Office of Thrift Supervision, which has joined the Fed and the National Credit Union Administration in backing the proposals. “What they proposed is a significant set of rules governing credit card practices and overdraft protection.”