Credit Union Better Choice said it has now made 53,714 loanstotaling nearly $26 million through 79 participating Pennsylvaniacredit unions.

In addition, the program, launched in 2006, has saved borrowersmore than $18 million over using a traditional payday lendingproduct, its sponsors said.

The Credit Union Better Choice loan, which was developed througha collaboration of the Pennsylvania Credit Union Association,Pennsylvania Treasury Department and the Pennsylvania Department ofBanking, is a payday lending alternative product where credit unions offerborrowers a 90-day loan with a $500 limit.

“The continued growth of the Credit Union Better Choice programindicates that consumers need access to short-term loans,” said JimMcCormack, president/CEO of the PCUA. “Through a voluntary program, credit unions across theCommonwealth are meeting the needs of their members.”

A typical $500 payday loan costs consumers $15 for every $100borrowed for two weeks, or approximately $450 over 90 days, thePCUA said.

A $500 Credit Union Better Choice loan costs consumersapproximately $42.50 for the same 90 days and, at the end of theloan term, the consumer has $50 in a savings account, whichencourages them to develop a savings habit, program sponsorssaid.