Member Advances As AnOption To Payday Loans
AKRON, Ohio - (01/16/06) Med/Pro CU thinks it has abetter idea for members seeking short-term cash. As an alternativeto the high-cost payday loans a large number of its members havebeen pursuing, the $12 million credit union introduced its ownsolution last weekat a much lower cost. Called MemberAdvance Loans, members can sign up for regular advances for $35 ayear and a $15 processing fee for each advance. That entitles themto 12 advances of up to $500 a year, depending on the size of theirpaycheck. The loan is repaid from the members account whentheir next paycheck is deposited. As part of the program, membersmust agree not to use payday lenders.