RALEIGH, N.C. – The $13 billion State Employees' Credit Union's payday loan alternative program saves its 40,000 credit union members who use it each month $70 apiece or $2.8 million per month, compared to what they would spend with payday lenders, the credit union said. Although roughly 53,000 credit union members have enrolled in the program by taking at least one of the loans, 40,000 of the members take them out regularly, even though the program has a savings component which is supposed to help them eventually move away from the low denomination loans. The loans have an annual percentage rate of 12% as compared with APRs of over 200% from many payday lenders. For a $500 loan this translates into a cost of about $5, the CU said, versus $75 which is what the member would pay at a payday lender to borrow the same amount of money. In addition, thanks to the savings aspect of the loans, the CU members have managed to save $8 million from taking out the loans, the CU said. “SECU's opposition to payday lenders is well-known in the financial industry,” said SECU CEO Jim Blaine. “However, opposition means little unless you're willing to provide a better option for your members. SECU's program provides not only a better lending option, but a savings vehicle for traditional `nonsavers.' The $33.6 million in avoided finance charges generated by SECU's SALO Loan Program plus the $8 million in SALO member savings is reinvested in North Carolina to help build families, educate children and buy homes. Wouldn't you say these are better ways for members to use their money? Credit unions make a difference in people's lives everyday. Who loses when the consumer wins?”