Monday's USA Today has a front-page story on some credit unions’ payday loan alternatives, however the news wasn't all positive. The article is titlted “Some credit union loans are not a good deal”, and reports that “short-term loans offered by some credit unions as alternatives to high-cost payday loans are as risky and deceptive as those they’re supposed to replace.”
The article cites a payday loan alternative from Nevada FCU as example, stating that a $400 14-day loan with a $70 application fee effectively carrries a 455% APR. Lois Kitsch of the National Credit Union Foundation is quoted as saying that while some credit union payday loan alternatives may look like traditional payday loans, “there are a huge number of others that don’t look like them at all."
That's All Folks!
5 years ago
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