A payday loan program offered by the $814 million Nevada FederalCredit Union has started to draw the attention of the mainstreampress.

USA Today picked up on the story of the Las Vegas-basedcredit union manipulating its use of fees in a payday loan programto avoid the 18% usury cap. Nevada Federal was named by theNational Consumer Law Center in a January letter to NCUA, which wasfollowed by an NCUA letter to federal credit unions on guidelinesfor payday lending alternative products.

Many credit union payday alternative loans really helpconsumers, said Lauren Saunders, the NCLC managing attorney quotedin the story, but others "are only marginally cheaper thantraditional payday loans."

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.