Ohio CUs Offer Payday Loans

Register now

DAYTON, Ohio - (12/28/04) -- Three area credit unions areoffering short-term payday loans they hope will prove an attractivealternative to high-cost payday lenders. The Salary Advance Programoffered by Day Air CU, Wright-Patt CU and Code CU, provides 30-dayloans of up to $250 for a $3 fee, about 18% annual interest. Thatamounts to a fraction of interest charged on a typical payday loan.The amount of the loan can be increased to $500 if the borrowerrepays on a timely basis. The credit unions also charge a one-timefee of $35 to join the program.

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