More Than 50,000 Have Leveraged PaydayLoan Alternative
RALEIGH, N.C. - (12/14/05) More than 50,000 members of StateEmployees' Credit Union (SECU) have turned to a payday lendingalternative program since it was introduced four years ago. Thecredit union said 53,600 members have borrowed via its SalaryAdvance Loan Program (SALO), which it says is a "low-costalternative to borrowing from and paying exorbitant fees to paydaylenders who are very prevalent in North Carolina." The SALO loanhas an APR of 12%, charges no fees, and allows members to borrow up$500 per month. Members can repay monthly with funds from theirnext paycheck. Seeking to assist members in breaking the paydayborrowing cycle, two years ago SECU launched the SALO Cash Accounttwo years later, a savings account that automatically deducts 5% ofthe borrowed amount and places it in a savings account for themember to help cover future expenses. Members that previously hadno savings have now put aside over $7.8 million in the account, thecredit union reported.