Pennsylvania CU Payday Loan Alternatives Save Members Millions

Credit Union Times
September 2, 2010
Morrison, David

The Pennsylvania Credit Union Association has extended $16.7 million in Better Choice loans since introducing the payday loan alternative in 2006, saving members more than $12 million in fees. Eighty credit unions have participated in the program, offering loans at 242 locations statewide. "I'm pleased that credit unions stepped up to the plate and are meeting the small dollar borrowing needs of Pennsylvanians. Just as important, credit unions are also providing financial counseling to help assist borrowers with managing their money," said Jim McCormack, CEO of the Pennsylvania Credit Union Association. Treasurer Robert McCord added, "Many Pennsylvanians need their dollars to stretch further in these tough times – to help them avoid a costly 'debt trap,' Treasury is proud to support the unique Better Choice payday lending alternative." A typical $500 payday loan costs consumers approximately $450 over 90 days, whereas a $500 Credit Union Better Choice loan costs consumers approximately $42.50 for the same 90 days and leaves the consumer with $50 in a savings account once the loan term ends.
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