DUBLIIN, Ohio -- A credit union alternative to traditionalpayday lending, StretchPay, saved members of 31 credit unions morethan $3 million in 2007.

Collectively, credit unions in Ohio, Maryland, Michigan and theDistrict of Columbia made 64,400 StretchPay salary advance loanslast year totaling nearly $25 million, accumulating $476,000 infees and $187,000 in interest at an annual percentage rate of18%.

According to StretchPay program provider Credit Union OutreachSolutions Inc., members borrowing the same amount at traditionalpayday lenders--which typically charge $15 per $100 borrowed and upto 391% APR--would have paid more than $3.7 million in interest andfees.

Designed to be a lower cost alternative for consumers in need ofsmall cash advances for short terms, StretchPay is positioned as away to help members avoid turning to payday lenders. A credit unioncharges an interest rate of 18% APR, along with an annual fee of$35, for a $250 StretchPay loan. The borrower must repay the entirebalance within 30 days before he or she can take a new advance.Some credit unions also offer $500 StretchPay loans at 18% APR,with an annual fee of $70.

Credit unions offering the StretchPay loan product are membersof Credit Union Outreach Solutions, a cooperative organizationformed in 2006 and headquartered in Ohio, to offer turnkey outreachprograms and community commitment initiatives to credit unionsnationwide.

"Our goal is to get our members on a path to economicprosperity," said Bill Burke, CEO of Day Air CU and chairman ofCredit Union Outreach Solutions. "We helped our members keep morethan $3 million in fees and interest. The free financial counselingand education help them make wise, long-term financialdecisions."

In addition to loans, members who take part in StretchPayreceive financial education and counseling from their credit unionto help them break free of the lending cycle. Credit unions alsoreport loan payments to the credit bureaus, allowing StretchPayconsumers to build their credit standings.

StretchPay is the first CUOSI program to be introduced. As ofmid-February, three leagues--Ohio, Wisconsin, and the Maryland& District of Columbia Credit Union Association--and 38 creditunions are members of CUOSI. They offer StretchPay loans at 125branch locations.

For more information about StretchPay, visitwww.ohiocreditunions.org/StretchPay.htm.

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