LENEXA, Kan. — To give members the ability to apply for their payday loan alternative anywhere they have Internet access, XtraCash LLC has launched an online payday loan application and processing system.
The new system aims to provide privacy for the member, gives the credit union opportunity to provide solutions without increasing operational staff and members receive a loan decision from the system within seconds, according to the CUSO.
The new application system seems to be in line with online usage, XtraCash said. Citing data from Stephens Inc., a private investment bank, in 2007, payday lending increased 10.6% without Internet lending and increased 19.9% with Internet lending. Last year, $6.7 billion was generated through payday loans and lending is projected to grow 30% in the next couple years, according to Stephens.
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"Our online payday loan alternative system will make the application process much more convenient for both our credit union clients and their members," said Lon Neofotist, managing director, XtraCash. "We are always looking for new ways to lower costs for our member-owned credit unions and increase service to their members."
Launched in March 2007, XtraCash is a division of CU Holding Company LLC, a subsidiary of $358 million Mazuma Credit Union. In 2007, it processed more than 2,500 loans with a total loan volume of over $920,000, according to the CUSO.
SBA Pushes Deferments
WASHINGTON — The Small Business Administration is encouraging credit unions, banks and other lenders to extend temporary payment relief to 7(a) and 504 loan recipients as access to credit and capital continues to tighten for small businesses.
On Oct. 20, the agency reminded lenders that they have the authority on a case-by-case basis to issue three-month loan deferments. If a deferment longer than three consecutive monthly payments is needed for a loan, borrowers can work directly with their lenders who in turn will work closely with the SBA to identify the best solution, the agency said.
At the same time, SBA is asking its lenders not to broadly call borrower loans due to changing financial variables, such as fluctuations in personal credit scores, declining collateral values, and reduced home equity, which are currently affected by the disruption in the financial markets. The agency said it has issued a notice that will be distributed widely to its lenders and 120 field offices encouraging them to look at these cases individually and to work with individual borrowers in order to facilitate the longer term success of these small businesses.
CU 24 Offers Prepaid Cards
TALLAHASSEE, Fla. — Credit Union 24 has joined up with credit union-owned card processor Member Access Pacific to offer member credit unions prepaid cards.
"It's great to see two credit union-owned CUSOs team up to offer a valuable tool for credit unions," said Jim Park, Credit Union 24 CEO. "MAP prepaids is a customizable solution for credit unions that want to fill their members' needs for gift cards, travel or college cards, and even payroll or incentive cards for their business members. The program's flexibility and low cost makes it a good fit with credit unions' expectations of Credit Union 24 offerings."
MAP's prepaid card program offers cards that can be tailored to individual credit union needs and markets for gift cards, travel cards, budget cards and other purposes.
The MAP prepaid cards feature near universal acceptance and come with 24/7/365 call-center support. Credit unions can choose from a number of predesigned themes or can customize the look of the card with their own logo or design.
Credit Union 24, the credit union owned ATM and EFT network based in Florida, said it expects interested credit unions to be up and running on the MAP prepaids program in time for the upcoming holiday season.
Bush Recognizes ICU Day
WASHINGTON — As credit unions made International Credit Union Day preparations, President George W. Bush sent his regards to credit unions around the world celebrating ICU Day.
In the greeting, the president noted the financial services provided by credit unions to the over 177 million members around the world, as well as the upcoming 100th anniversary of credit unions in America.
"As nonprofit financial institutions, credit unions play a vital role in expanding economic opportunity and helping individuals and families achieve their dreams. For nearly 100 years, credit unions in America have made a positive difference in the lives of their members and the communities they serve," stated Bush.
He also commended credit union employees' commitment and dedication "to excellence, integrity and personal responsibility."
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