Md. CU Offers Help To Abusers Of CourtesyPay Program

Register now

LUTHERVILLE, Md. - (12/14/05) First Financial of Maryland FCU willbegin rolling out a low-cost alternative to payday lenders Jan. 1that is also aimed at members who overuse its courtesy pay product.The new Safety Line product is a line of credit with a limit ofbetween $200 and $500 that is transferred directly from themember's direct deposit account to cover the cost of any bouncedchecks. With a $5 monthly fee, no application and an interest rateof 12.9%, Safety Line is designed for those members who have beenmisusing the CU's courtesy pay program and/or have been reachingout to payday lenders when they fall short, the credit union said.If a member goes three months in a row without needing to dip intoSafety Line, the $5 fee is cancelled. When the member needs itagain, the $5 fee is reinstated until the member goes another threemonths in a row without bouncing a check. The product will bemarketed exclusively to members who are currently using paydaylenders or are chronic users of the CU's courtesy payprogram.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER