The Case for Payday Lending Alternatives at Your Credit Union
Several of the credit unions that we work with have recently either started offering payday loan alternatives or have started the investigative process. At first look, a conservative credit union exec would hold their hand and say “not my credit union.” In fact, the first thing that might come to your mind is “that’s just one more thing for my examiner to hassle me with.” Rex Johnson put it best when he said this at a recent lending seminar in South Carolina: “Do you exist to satisfy the NCUA or to help your members?”
The Pew Charitable Trusts recently did an in-depth study of Payday Lending in America, and released some it’s findings in the first of a multi-part series. The study provides some great insight into payday lending such as:
- Who uses payday loans?
- Why do borrowers use payday loans?
- What would borrowers do without payday loans?
- Does payday lending regulation affect usage?