Payday Lender Shows The Ropes To CUs at NCUA Summit

TAMPA, Fla.—Of all the people Lois Kitsch could have brought to an NCUA summit on short term lending, she picked a payday lender. But there as a good reason. Kitsch, who heads up the National Credit Union Foundation’s REAL Solutions effort, which includes programs to counter payday lenders, was among those on hand with NCUA Board Member Gigi Hyland, who brought the agency’s Access Across America series to the west coast of Florida to discuss short-term lending, free tax help for members and check cashing. Kitsch brought payday lender Kirk Chewning, EVP with TranDoCom Solutions, Kennesaw, Ga., to discuss why CUs need to offer a viable alternative to payday loans. Chewning said a payday lender can offer a first-time customer a small cash amount in less than 10 minutes and a return customer can get approved in roughly three minutes. A credit union member himself, Chewning said payday lending can provide revenue for credit unions, show commitment to the membership and community and help break the cycle of debt with financial education and old-fashioned credit union concern for the member. He added that a shor- term loan can be part of a solution and can come before a credit union learns a member is in trouble via recurring NSF charges, courtesy pay events or late credit card payments.