Submitted by Payday Leads (not verified) on September 19, 2008 - 2:01am.
Credit unions has agressively gone after payday lenders via rate cap legislations (OH at 28% and Oregon at 60%) so they can take back their former customers: those who bounce checks.
Consumers were quick to learn that a $15.00 fee paid to a payday loan company was much cheaper than paying a credit union $25 or $35 for a bounced check fee. Where such fees comprise 40% of credit union incomes, credit unions have moved to limit the success non-traditional lenders have enjoyed with the public.
To effectively ban payday lenders via rate caps only serves to hurt, not help consumers by forcing them to pay for more expensive products.
Credit Unions are not heros, folks!
Credit unions has agressively gone after payday lenders via rate cap legislations (OH at 28% and Oregon at 60%) so they can take back their former customers: those who bounce checks.
Consumers were quick to learn that a $15.00 fee paid to a payday loan company was much cheaper than paying a credit union $25 or $35 for a bounced check fee. Where such fees comprise 40% of credit union incomes, credit unions have moved to limit the success non-traditional lenders have enjoyed with the public.
To effectively ban payday lenders via rate caps only serves to hurt, not help consumers by forcing them to pay for more expensive products.