State Employees CU Makes 40,000 PaydayLoans A Month
RALEIGH, N.C. - (02/24/06) State Employees CU said it issavings members at least $70 a month with its new payday loan,called Salary Advance Loan. The credit union giant said 53,000 ofits members have enrolled in the cash advance program. Theshort-term loans carry a 12% annual rate, compared to annual ratesexceeding 200% for many payday loan programs. The creditunions no-interest, no-fee SALO loan allows members toborrow up to $500 and is repaid through automatic deduction fromthe members employerfor most of the its thestate government. In addition, the credit union has introduced aSALO Cash Account that automatically deducts 5% of the borrowedfunds and places it into a rainy day account for themember, to help pay down the loan.