Credit Union “alternatives” under scrutiny
August 3, 2009 | USA Today, alternatives, industry | Comments (0)USA Today picks up an an issue we’ve been discussing:
In recent years, hundreds of credit unions have introduced short-term loans for members who face a temporary cash crunch. But some of the loans “are only marginally cheaper than traditional payday loans,” says Lauren Saunders, an attorney with the National Consumer Law Center.
The National Credit Union Administration, which regulates federal credit unions, last week issued guidance to its members, alerting them to the “risks, compliance issues and responsibilities” associated with a short-term loan program.
Perhaps they can’t make them cheaper without losing money.
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