MADISON, Wis.–Noting that every 90 seconds $67,000 in new payday loan debt is issued in the U.S., the Filene Research Institute is urging credit unions to enroll in two programs that offer alternatives.
“Payday lending is a burden on consumers, especially the most vulnerable members of our society,” said Filene in a blog posting. “Many consumers who take these loans end up taking out an additional payday loan just to pay back the first leading to an endless debt cycle that makes the situation worse and worse. But it doesn’t need to be so. Many credit unions sit somewhere on the continuum of good to great in the fight to increase awareness and education, provide access to better options and help members get on their feet and out of stifling debt. There are many successful payday alternative programs in place today in financial institutions across the country. Are you satisfied with the solutions your credit union is offering?”
Filene is recommending credit unions look at its QCash and Payday Payoff Installment Loans programs.
For more info: https://filene.org/blog/post/payday-lending-by-the-shocking-numbers