GRAND RAPIDS, Mich. (12/19/14)--CU*Answers, a Grand Rapids, Mich.-based credit union service organization, has launched a National Credit Union Administration-endorsed small-dollar lending program for federal credit unions designed to protect members from predatory payday lenders.
Payday Alternative Loans (PALs), part of CU*Answers' "Just Turn it On" initiative, gives credit unions a chance to transition borrowers to more traditional products offered by credit unions and break the cycle of reliance on payday loans.
With its "Just Turn It On" initiative, CU*Answers helps credit unions manage the launch of new products.
"CU*Answers will configure the product, provide training, policy examples and ensure the credit union is prepared to leverage results and help members, " said Mary Dwyer, CU*Answers account executive.
PALs are not only an economical choice compared with traditional payday loans; they can strengthen the member's credit history. When a member can be removed from the negative cycle of payday lending, they can successfully move toward more traditional forms of lending.