A story distributed nationally by McClachey Newspapers focused on financial institutions offering alternatives to the estimated 73-million “underserved” who often use check-cashers. “The hope is that mainstream financial institutions can convert the check-cashing customers and payday loan-seekers of today into the sought-after depositors and low-risk borrowers of tomorrow,” the story said. Featured in the report was the purchase of the 55 Nix CheckCashing stores in Southern California by Kinecta FCU, and the purchase of eight check-cashing stores by Wescom CU.
USA Today published an extensive story on North Carolina’s State Employees CU and its development of alternatives to check cashers and payday lenders. The story highlighted SECU’s $500 maximum loan at 12% APR, which requires 5% of the loan proceeds go into a savings account. “We wanted to find a way to get our members out of this trap,” USA Today quoted SECU CEO Jim Blaine as saying. “We have a couple of our vice presidents using it, a vice chancellor of a university. ... It’s not just a poor person’s product.” Also quoted in the story was Doug Fecher, CEO of Wright-Patt Credit Union, Fairborn, Ohio.
