Langley FCU Says Payday Alternative Saved $230K
One year after launch, Langley FCU said its QuickCash program has saved members who might have otherwise used a payday lender-more than $230,000. The program was designed to offer an alternative to payday lenders. The credit union based its savings calculation on a formula assuming the typical payday lender charges a fee of 15% of the amount borrowed. For example: if a customer borrows $500 they will be charged a $75 fee for the two-week loan (390% APR). On a $500 QuickCash Loan, the interest would only be 18% APR, and instead of paying $75, he/she would pay only $3.48 in interest over that two week period, the credit union noted.