Nevada Federal is Out Of Payday Loan Business
The $804 million Nevada Federal Credit Union, headquartered in Los Vegas, has apparently written its last payday loan.
A call to the credit union confirmed that the Nevada stopped offering the loans as of Thursday, Oct. 15 and any mention of the controversial short term loans had disappeared from its Web site.
Nevada Federal had been offering a loan called AdvancePay, which charged an application fee up front whether a borrower got the loan or not. The credit union had defended the loans by arguing they were less expensive for members than other payday advance loans offered by other firms, but an NCUA letter to credit unions made it clear the regulator took a dim view of the lending.
In an article that appeared Sept. 18 in In Business Las Vegas, a local business journal, Nevada CEO Brad Beal is quoted as saying the credit union had written 12,000 loans through July of this year, worth roughly $8 million and had taken $75,000 in defaults on them.
The credit union has not commented on why is stopped offering the loans.