ROCK HILL, S.C. — In what appears a new and innovative approach to payday products, the $200 Family Trust Federal Credit Union said today it is getting an "outstanding" public response to "Lifeline Advance" loans incorporating both a savings feature and a $35 program fee.
"We've been doing research on this for months now borrowing from both State Employees in North Carolina and from Wright Patt in Ohio to come up with a product that is break-even and meets needs of payday borrowers," explained Lee Gardner, president/CEO.
Since its debut in mid-May, more than 240 Lifeline Advance loans have been extended with $100,000 in credit lines accompanied by only $8,500 in 30-days past due "no bigger any projected loss that you might get on a single car loan," said Gardner.
As an important side benefit, Lifeline Advance is getting statewide media play and drawing the attention of lawmakers, a point Gardner believes is critical "if we are ever to show as an industry what we do for low income." Gardner, immediate past chairman of the South Carolina Credit Union League, said he hopes to interest other CUs in the state to join in offering similar payday products.
Under Lifeline Advance, borrowers must be a CU member for 60 days and can receive a pre-approved line up to $500 at 18% with repayment required in 30 days.
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