Well, do you?
August 14, 2009 | Center for Responsible Lending, Wisconsin, local issues | Comments (0)Lisa Kaiser over at the Express Milwaukee claims to ponder whether Wisconsin needs payday lenders, but actually just recycles every misguided and CRL-fueled argument in the book. What particularly interests me is when she finally gets around to discussing alternatives. I’ll applaud her for actually looking out for consumers who do need short term credit, but this doesn’t really sound like an alternative to me:
Those seeking a loan must become members of a credit union, which typically means opening an account and depositing $25. Credit unions provide financial counseling and, like banks, will consider one’s ability to pay off the loan. Henzig said credit unions offer loans as little as $500, and some will even issue a loan of $100 if someone truly needs that money.
So how long does it take to become a member of a credit union? Are there fees associated with that beyond the $25 initial deposit? CFSA payday lenders offer financial counseling and of course they consider a borrower’s ability to pay off the loan–having the loan paid off is how they get their money back. Apparently if you need a $100 loan, you have to convince someone that you really really really need it–certainly the kind of decision I prefer for someone else to make for me. But, at least in the event that you can’t convince someone you need a $100 loan, you’ll be welcomed to borrow more than you need in the form of a $500 loan. I assume this $500 loan has some sort of interest or fees associated with it, but certainly there’s no need to include that in the story. After all, had the story included those interest and fees, we could see if the credit union actually saves consumers money…particularly while they’re forcing consumers to borrow more than they need.
Nothing like good reporting to start your Friday.
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