Your recent article (cutimes.com, July 31) about our payday loanalternative gave readers a less-than-flattering impression. I feelcompelled to respond.
A few years ago, we discovered that a segment of our membership wasusing payday lenders. We wanted to offer these members a lower-costalternative, an opportunity to obtain financial counseling and ameans to escape the vicious cycle that payday loans cancreate.
Our loans cost about half of the average charged by payday lendersin Las Vegas. So far this year, we have saved our members nearly$700,000. In fact, our members have saved more than they've paid tothe credit union.
Each borrower is invited to use our free financial counselingservice. Also, any borrower can automatically convert the loan tomonthly payments with a one-year term. The interest rate for thisloan is 18% with no fees, for a monthly payment of about $65.
We have found that consumers of almost all demographic categoriesutilize our payday loan alternative, even some high-incomeindividuals.
There are substantial costs involved, including loan documentation,collection costs, loan losses, subscription to a separate reportingagency, data processing and legal review.
Our program is in strict compliance with all laws, rules andregulations, with legal counsel closely involved.
We are proud of our program and the savings we have provided ourmembers. Ignoring these members' needs would be contrary to ourmission as a credit union.

Bradley W. Beal President
Nevada Federal Credit Union
Las Vegas