August 3, 2018

This blog post is a follow-up to a post I first wrote two years ago. I want to keep you apprised of our work that provides alternative loans to families that would otherwise turn to toxic lending operations.

I still don’t care for payday lenders, as you can tell through my tone in my September 2016 blog post. However, my rhetoric has softened (just a little), and I’ve focused my attention on the lack of short-term credit options in America.

When it comes down to it, if a bank charged me 2.49%, which is what I pay on my car loan, for a $500 short-term loan, they couldn’t make enough interest to cover their expenses and overhead. Payday lenders, who charge APRs of 200% upwards of $1,000%, set rates that allow them to absorb the risk of giving out loans with virtually no screening, and anticipating a high charge-off rate.

As we’ve reported to you, we built an alternative lending program in 2014 with Holy Rosary Credit Union. We lessen the credit union’s exposure by mitigating losses th...

Please reload

Recent Posts

July 12, 2019

October 5, 2018

Please reload

Please reload

Search By Tags