GoodMoney product to be rolled out nationwide
October 21, 2008 | alternatives | Comments (0)The press release states: Prospera Credit Union, headquartered in Appleton, Wis., now offers its nationally recognized GoodMoney(R) not-for-profit payday loan alternative as a turnkey solution to credit unions nationwide.
Goodwill, a non-profit, tax-exempt charity, in partnership with Prospera Credit Union charges customers almost $10 per $100 borrowed (i.e., 252% APR) for their “Good Money” payday loan. For-profit payday lenders typically charge $15 per $100 borrowed while also paying taxes, employee salaries and health care, rent and overhead costs. The $5 more they need to break even, pay taxes, make a profit and keep their businesses running makes sense for borrowers, employees and the tax coffers.
Even though Prospera/Goodwill is only trying to break even, they could not offer the product under the 36% annual rate cap being pushed by the Center for Responsible Lending.
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