New option to payday loans announced by CU in Arizona

PHOENIX (11/3/06)--The new Mesa branch of MariSol FCU, Phoenix, will serve as an alternative to the 111 payday loan operations that pepper Mesa's intersections.

According to Robin Romano, CEO of the $29.2 million asset credit union, the credit union will provide signature loans for interest rates of 9.25% to 18%--much lower than the payday lenders, whose interest rates might reach 460% (The Arizona Republic Oct. 28).

The credit union also:

  • Will deposit $25 into a new savings account a customer opens;

  • Provide checking accounts with no monthly fees and a $500 line of credit for those who qualify--at a 15.5% interest rate;

  • Provide an ATM card so members can withdraw cash free; and

  • Offer a "start again" checking account for members with poor credit. It will have a $10 monthly fee, with no line of credit attached. However, the member may qualify for the free checking account with the line of credit after two years.

Payday lenders in the city have doubled in two years, said the article. City Councilman Mike Whalen lauded the credit union's effort, adding state and federal legislation is still needed to keep payday lenders from exploiting the poor.

Marisol FCU is marketing the loans with doorknob fliers in English and Spanish distributed within a two-mile radius of Mesa Community Action Network, which provides services to low income families. It also will publicize its services at a neighborhood event after the holidays.

print this story email this story
Resource Links
Payday Loans: The Hard Truth About Some 'Easy' Money
RELATED STORIES: CUs Make a Difference


More CU/System

Copyright © 2012 Credit Union National Association