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Nebraska CUs offer payday loan alternative
OMAHA, Neb. (10/21/11)--Lincoln, Neb.-area credit unions collaborated to launch “Credit Union Quick Cash,” an alternative to high interest payday loans for consumers.
Click to view larger image Six Lincoln, Neb. credit unions Thursday launched their Credit Union QuickCash program to provide their members with an alternative to high interest payday loans. Pictured, from left, Jerry Barnett, president/CEO, LincOne FCU; Kenn Miller, president/CEO, MembersOwn CU; Bob Torell, president/CEO, University of Nebraska FCU; State Senator Amanda McGill; Chris Nielsen, president/CEO, Nebraska State Employees CU; Ken Bradshaw, President/CEO, Liberty First CU; Dale Springer, president/CEO, Peoples Choice FCU. (Photo provided by Nebraska Credit Union League)
“Short-term, small-dollar loans are often a necessity for many people who are trying to make ends meet, said Scott Sullivan, president/CEO of the Nebraska Credit Union League. “Unfortunately, the current market for these loans in Nebraska is primarily limited to high-cost paycheck advance loans. Credit Union Quick Cash will offer consumers a quick, convenient and low-cost alternative.” The participating credit unions have agreed to offer the same terms and conditions for the small low-interest loans. Members of the participating credit unions will be able to apply and qualify for a $500 loan with an annual percentage rate (APR) of 18%. The average payday loan in Nebraska has up to a 460% APR on a $500 loan with a payback term of 34 days, according to the Financial Stability Partnership. The payback term of the Credit Union Quick Cash loan will be 60 days with no prepayment penalty for members who wish to pay off the loan early. The Lincoln credit unions participating included Liberty First CU, LincOne FCU, MembersOwn CU, Nebraska State Employees CU, Peoples Choice FCU and University of Nebraska FCU. Credit union members can obtain a Credit Union Quick Cash loan in minutes without a credit report. Applicants are required to provide proof of income and be a member of the respective credit union for at least 30 days to qualify.


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