KETTERING, Ohio — “Stretch Pay,” one of the payday alternatives favored by a group of Midwest and Maryland credit unions plus two leagues, is gaining in popularity this summer and now has the backing of a new nonprofit CU co-op, the chairman of the entity, William Burke, president/CEO of Day Air CU said today.

“This is not a money maker but it is a product that is simply going over exceptionally well with the public and saving them tremendous amounts that would have been grabbed by the payday shops,” said Burke in describing the “Stretch Pay” progress.

Burke is chairman of the entity, Credit Union Outreach Solutions Inc., that now has 30 dues paying members plus the Ohio and Wisconsin Credit Union Leagues.

In promoting “Stretch Pay,” CUOSI (pronounced CUsee), encourages CUs across the U.S. to sign up for the turnkey package in which the $35 or $70 annual fee paid by members is pooled into a guarantee fund to cushion against losses.

Apart from the Wisconsin and Ohio leagues, also participating are CUs from Maryland and Michigan with plans to increase the number of CUs to 60 by yearend and offer other “low wealth” products, said a spokeswoman for the Ohio League. Under the 18% “Stretch Pay” borrowers are provided 30-day lines of credit at either $250 or $500.

Stretch Pay was pioneered in 2003 by Wright-Patt Credit Union of Fairborn and Day Air and a year ago expanded to include 10 western Ohio CUs, later joined by Michigan and Maryland CUs.