Payday Lending Taking Over Nevada, Says Beal
LAS VEGAS -- Nevada is emerging as a kind of subprime capital said Nevada Federal Credit Union CEO Brad Beal.
That is why the $800 million Nevada Federal Credit Union has taken special steps the last few months to meet the demand for payday alternatives, he said.
"We're doing 500 loans a month and so we're pretty small players but the statistics are pretty overwhelming--200,000 payday loans a week in this state," said Beal, whose CU began offering a $500, two-week loan with a $40 application fee two years ago and has since added new products this fall.
Citing the explosion of payday shops in the state and its own surveys showing 25% of its members use the firms, Nevada Federal felt it had to act more forcefully to meet the demand, said Beal.
Thus, the CU, ranked in the top two in size, has added on what it calls a "break the cycle" 18% "Emerge loan" plus a "New Start" checking program and special terms on mortgages. It is also using Balance, the San Francisco counseling firm.