SAN ANTONIO -
But now they're being told to embrace it.
Kristin Van Schyndel, marketing director at Prospera CU, said the Appleton, Wis., credit union intentionally broadcasts its short-term advances as payday loans so that consumers know right off the bat that it is a similar product to the one they are getting at high-priced payday lenders. "Don't shy away from the term payday," she urged during the CUNA Lending Council conference.
So ads and marketing materials for Prospera's GoodMoney program clearly define the product as a payday loan, she explained.
Langley FCU, which operates a successful payday program for its mainly military membership, also uses the payday loan moniker in its ads, said Barbara Elvington, chief operating officer for the credit union, based in Newport News, Va., home to one of the nation's Navy bases.
"You have to heavily advertise it and brand it," Elvington said.
The marketing campaign for Langley's QuickCash, states "a smart alternative to payday lenders," so members know it is a payday product," said Elvington.
And just as important, she emphasized, is to use the color of money in marketing campaigns. "It's important that you use green in marketing and advertising materials," she said, of the QuickCash product, a 14-day loan at 18% APR.
Prospera's ads have a picture of a $20 bill being torn in half, representing the lower costs of the product, compared to payday lenders.
The credit union executives suggested that credit unions considering a payday loan program consult with Teletrack, a credit bureau for subprime borrowers. The company can take a credit union's member list and use it to determine what portion of those members are using or have used a payday lender. This will help credit unions decide whether there is enough demand for the product among their members.
