Payday lenders prey not only on the poor and immigrant communities, but also the middle class,
Long Beach Postal Credit Union is a $61-million CU that serves 3,970 current and retired postal service employees, their families,
"We were surprised to find that it was not just the poor that were using payday lending," Peterson said. "Our members are postal
In recent years, there has been much discussion in the credit union movement about payday lending and what the appropriate
According to LBPCU, payday lenders typically charge $15 for every $100 borrowed-which adds up to a hefty annual percentage
"Members must pay back the loan within 30 days, so the cost is about half of what they would pay at a payday lender," said
The credit union's payday lending program began in July 2002, with the first loan being made just before the program was
30 to 40 Loans Per Month
At first, Long Beach Postal Credit Union made approximately 15 to 20 payday loans per month. It now underwrites 30 to 40 per
The credit union advertises the program with posters, statement inserts and articles in its quarterly newsletter.
Peterson said the program recently experienced its first losses, as two members took out $500 loans and, within weeks, declared
"All in all, it is doing really well," he said. "Members are happy with the lower fees. It is not really a moneymaker-we make a