LAS VEGAS — It's not exactly shocking news that Nevada is a mecca for payday loans, but for the state's credit unions the alarming statistics–200,000 payday loans a week–are proving an industry wake-up call that something has to be done to protect members.
"It is certainly true for us and others in the league that we are looking at several models on the market," commented Dan Paulson, chairman of the Nevada Credit Union League and president/CEO of the $180 million Westar Credit Union of Las Vegas, who acknowledges that up until now many CUs have been reticent about entering the field because of loss factors.
Still, the $800 million Nevada Federal Community Credit Union, which is the state's second largest CU, but not a league member, said in the last two months it has stepped up its program of offering payday alternative products. "We saw those payday shops crop up on every corner and now we find from our own surveys that 25% of our own members use payday services," declared Brad Beal, president/CEO.
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