Agency letter promises to find out if five credit unions are staying within NCUA interest rate ceiling.
Two long-term opponents of payday lending said that nine federal credit unions in five states continue to offer members payday loans with triple-digit interest rates.
XtraCash says it and its clients exceed bar set by payday lenders and if forced to meet NCUA standards, the credit unions couldn't do it.
Short-term loans are in demand. According to a recent Wall Street Journal report, payday lender and pawn shop share prices jumped in October. Some credit unions are taking this opportunity to provide similar products, but at a lower cost and with a different philosophy in mind. While payday lenders encourage...
Unemployment, rising debt and financial uncertainty are continuing to change the perception of those who are using payday loans.
Between 2007 and 2010, payday lending alternative CUSO XtraCash LLC said it has saved its partner credit unions and members more than $2.8 million.