The Wichita Eagle reported on an alternative to payday loans being rolled out by Boeing Wichita CU. BWCU's "salary advance program" offers loans up to 20% of a member's monthly net income, up to $500. The annual interest rate is 36%, which amounts to $15.29 on a $500 loan. The article quoted Keenan Bender, VP- consumer and indirect lending, as saying that payday loan companies typically charge APRs of approximately 400%. The article went on to cite a similar program at Credit Union of America, which offers a "second chance loan."
Florida Today provided coverage of a program from Space Coast CU in which members are being offered rebates to help offset out-of-pocket expenses when leasing commercial or industrial properties. SCCU is rebating an amount equal to 20% of the commission earned by a broker for a lease or purchase transaction. Bill Jenkins, business services manager, was quoted by Florida Today as saying, "We saw an emerging need to assist our members, given the substantial closing costs associated with commercial real estate." Space Coast has partnered with Lightie Commercial Inc., Melbourne, Fla., on the program.
The Duluth News Tribune reported that Superior Choice Credit Union in Superior, Wis., is being affected by the decline in the real estate markets. The credit union is among the plaintiffs that have lost money and are now suing in the real estate loan participations that were being offered by Norlarco CU in Colorado. But CEO Gary Elliott told the newspaper the $1.05 million loss SCU has experienced will not affect the CU.
