Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Crains Ohio CUs program a payday loan alternative
CLEVELAND (4/17/09)--Ohio credit unions' StretchPay program is featured in Crain's Cleveland Business (April 13) as an alternative to payday lenders. "Ohio's credit unions--long considered a conservative bunch--say they are seeing growing interest in their StretchPay program, which is geared to short-term borrowers," said the article. In Northeast Ohio, 11 credit unions offer the program, with terms varying and with an annual rate of 18%. Crain's interviewed three credit unions: TeleCommunity CU, Akron; Community United CU, Strongsville; and Eaton Family CU, Euclid. Veronica Cromer, vice president of lending at TeleCommunity CU, told Crain's there had been a slight increase in business from people who used payday lenders in the past. She added that people don't understand how much payday lenders really cost them. The credit union explains to them how much they're paying when they visit check-cashers. "It's probably five times higher," she said. Julie Gee, CEO of Community United CU, saw a pattern of young adult borrowers making bad financial decisions and wanting to improve their credit. The loans under StretchPay can be used to boost credit ratings, she said. Fred Siegel, marketing manager at Eaton Family CU, said payday lending alternatives still have a long way to go because payday lenders are "still in the game."
Other Resources

RSS print
News Now LiveWire
Why is a #creditunion a good fit for you? http://t.co/i4pGT98mkT via @MONEY
4 hours ago
The numbers are in: Home Depot data breach impact on #creditunions = $57.4 million, 7.2 million credit/debit cards http://t.co/jorYSOYuxj
5 hours ago
.@Nussle : We'll back off when retailers accept their breach responsibility #NewsNow http://t.co/7WxDXicb6j
7 hours ago
RT @asmarterchoice: RT @daily_finance: Top 5 money management tips for 30-somethings http://t.co/mWRfDRSTE7
7 hours ago
Operational efficiencies focus of new @CUNA program #NewsNow http://t.co/qBYHKVYeQN
8 hours ago