HARRISBURG, Penn. – Pennsylvania’s credit unions are estimating that consumers in the Keystone State have saved more than $3.2 million in interest and fees since the 2006 launch of the Credit Union Better Choice program, which is an alternative to payday loans.
The figures, generated by the Pennsylvania Credit Union Association, are based on loans made by 66 of the participating credit unions, which have made nearly 9,500 loans totaling $4.47 million dollars in volume. A typical $500 payday loan costs consumers $15 for every $100 borrowed for two weeks, or approximately $450 over 90 days. By contrast, said the PCUA, a $500 Credit Union Better Choice loan costs consumers approximately $42.50 for the same 90 days and at the end of the loan term, consumers have $50 in a savings account, which allows them to develop a savings habit.
