How To Make CUs The Payday LoanOption
LAS VEGAS - (07/15/05) -- As payday lenders literally circlethe ranks of defense personnel on military bases, there are someeasy things credit unions can do right now to help counteractpredatory lending practices that take aim at the nation's military,according to Hank Klein, retired president of Arkansas FCU. "Ifyour minimum loan is more than $100, like $500 to $1,000, I suggestyou lower your minimum to $100," Klein told attendees of theDefense CU Council summit held here in conjunction with NAFCU'sannual meeting. "Too many of us are relying on our credit cards tohandle our small loans." Another way credit unions can take a biteout of payday lenders: make it impossible for them to keeppresenting the same checks over and over again. "Some of them willjust keep presenting the check hoping that maybe this time it willbe good," Klein noted. "And every time they present that check andthere aren't enough funds in the account, we're charging thosemembers NSF fees, whittling down their ability to pay evenmore."