Prospera CU Is Rolling Out National Payday Lending Program
November 24, 2008 | alternatives, industry | Comments (0)The Credit Union Times article quotes Prospera’s CEO, Ken Eiden, “We believe firmly that every credit union that has a payday loan store in their community should begin to offer GoodMoney or some other payday loan alternative.”
While the Payday Pundit agrees that having more choices is a good thing for consumers, we do think all lenders should have to follow the same rules. GoodMoney charges a fee of $9.90 per $100 for their payday loan (252% APR). How can GoodMoney be legal in Oregon and Ohio and other states that have instituted double-digit rate caps on payday loans?
Well…by law, federally chartered credit unions cannot charge more than 18 percent APR. BUT, unlike payday lenders, credit unions do not have to include fees in their APR calculation.
