Financial Education Not Enough To WeanPayday Lending

BALTIMORE - (07/08/05) -- Financial literacy education is notsufficient in itself to deter consumers from high-cost paydaylenders and check cashers, a study underwritten by the FileneResearch has concluded. But consumers and active credit unionmembers need to be provided with readily accessible products andservices as an alternative to payday lenders, according topreliminary results of The REAL Solutions Project conducted by 12Maryland and Washington, D.C., credit unions. “Education isnot the only answer,” Michael Beall, president of theMaryland CU League, said during Thursday’s PALs Conference,sponsored by NCUA. “You need to be able to make a $250 loanin 10 minutes,” said Beall, who suggested credit unionmanagers to visit payday lenders and other high-cost competitors.“Know your competition,” he urged.