DUBLIN, Ohio – A credit union alternative to traditional payday lending, StretchPay, is reporting it saved members of 31 credit unions more than $3 million in 2007.
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Credit unions in Ohio, Maryland, Michigan, and the District of Columbia collectively made 64,400 StretchPay salary advance loans last year totaling nearly $25 million, according to the Ohio Credit Union League. Those members accumulated $476,000 in fees and $187,000 in interest at an APR of 18%.
Members borrowing the same amount at traditional payday lenders–which typically charge $15 per $100 borrowed and up to 391% APR–would have paid more than $3.7 million in interest and fees, the OCUL said.
