Credit Union Better Choice said it has now made 53,714 loans totaling nearly $26 million through 79 participating Pennsylvania credit unions.
In addition, the program, launched in 2006, has saved borrowers more than $18 million over using a traditional payday lending product, its sponsors said.
The Credit Union Better Choice loan, which was developed through a collaboration of the Pennsylvania Credit Union Association, Pennsylvania Treasury Department and the Pennsylvania Department of Banking, is a payday lending alternative product where credit unions offer borrowers a 90-day loan with a $500 limit.
“The continued growth of the Credit Union Better Choice program indicates that consumers need access to short-term loans,” said Jim McCormack, president/CEO of the PCUA. “Through a voluntary program, credit unions across the Commonwealth are meeting the needs of their members.”
A typical $500 payday loan costs consumers $15 for every $100 borrowed for two weeks, or approximately $450 over 90 days, the PCUA said.
A $500 Credit Union Better Choice loan costs consumers approximately $42.50 for the same 90 days and, at the end of the loan term, the consumer has $50 in a savings account, which encourages them to develop a savings habit, program sponsors said.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
