Members of Pennsylvania credit unions have saved nearly $7 million over what they would have spent with payday lenders, according to the Pennsylvania Credit Union Association.
The PCUA reported that since 2006, members of credit unions offering Better Choice loans have taken out 20,000 loans worth more than $9.3 million and, in doing so, saved $6.7 million.
"When consumers are in need of cash, credit unions have stepped in to fill this void with affordable short-term loans," said Jim McCormack, CEO of the PCUA. "Also, the credit unions are offering financial coaching to borrowers to help them in budget and manage money."
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Pennsylvania Treasurer Rob McCord also praised the program. The state helps defray losses from the loans with part of the interest earned on a $20 million deposit in the credit union system.
"Just like the Pittsburgh-area residents I met earlier this year, other hard-working Pennsylvanians from time to time need quick access to cash for an unexpected expense or to make ends meet between paychecks," Treasurer McCord said. "Since the program began, Pennsylvanians have used more than 20,000 Better Choice loans, and in the process were spared nearly $7 million in interest charges and fees."
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