Sign In To Keep Reading!
Need To Register?
Thank you for your interest in reading the fantastic content we have on CreditUnions.com! All users must log in to read, research, browse, and have fun on CreditUnions.com. It's free to create an account.
Learn What You're Missing
Upgrade Your Subscription
Back to CreditUnions.com
Read & Watch
Deposits & Payments
Operations & Technology
Search & Analyze
Find A Credit Union
Find A Credit Union Executive
Build A Peer Group
Strategy & Performance
Anatomy Of A Credit Union
Market Share Guides
Credit Union Directory
5 Tips To Survive Multiple Mergers
What Lurks In The Dark Web?
An Education In Online Banking Conversion
ACH Data Means More Lending For A NY Credi...
A Strategy To Market What Members Want
12 Ratios For Marketing Managers
It's Not Just A DC Road Race
Best Of Payments And Technology 2016
Best Of Mortgage 2016
Best Of Marketing 2016
Best Of Cooperative Strategy 2016
2017 Callahan Credit Union Directory
A Strategy To Centralize Lending And Increase Efficiency
5 Ways To Better Understand Your Auto Portfolio
Industry Performance By The Numbers (3Q 2016)
A Wake-Up Call In 2017?
Follow The Leaders
Sophisticated Financial Tools Offer Big Advantages For Smaller Credit Unions
Less Risk, More Reward
Tips For Financing Country Living
Industry Performance By The Numbers (3Q 2015)
Which credit union has the highest loan-to-share ratio?
Lessons from a Bangladeshi Banker
Growth and Relationships Through Private Student Loans
Student Lending – How to Reach this Market
Flunking Out: The Biggest Opportunity CUs Are Missing
Attracting SEGs and Serving Members with Alternative Payday Loans
Nov. 14, 2005
I have been in the credit union industry for over thirty years and I still wonder who established our core mission as serving the underserved. It was thrust upon us by a former regulator and seems to have stuck. If not tactfully challenged it will eventually work against our well being. R. Hatch CMT Federal Credit Union
I think you are unaware of how active credit unions are in the pay day lending arena. SAFE Credit Union has an extensive program of making small unsecured loans to thousands of members. Our program is much more convenient than the typical pay day lending program. Our members write checks for which they have no funds and we cover them up to $1,000 for $18. The member repays the amount when their next deposit occurs to their account. In most instances this occurs when their next payroll posts. We call our program Courtesy Checking and it is very common throughout the credit union industry. It is better than payday lending for the following reasons; 1. It is cheaper. The typical payday lender charges about $15 per $100 advanced. 2. Our members don't have to go to any office to get the funds they need. Our members are only advancing funds when they need the money. We help our members avoid the charge by posting all credits first and then debits. We post the smallest items first and then the largest to limit how many checks will not clear. We cover advances under $20 without charging any fee. We transfer shares or line of credit funds for a $3 charge before we use courtesy check services. We correspond with members who use the program to educate them about lower cost alternatives. Henry Wirz
Good basic information.
From the author: Thank you for your comments. To help clarify the discussion I thought it would be beneficial to go back to the original 1934 FCU Act: ‘‘An Act to establish a Federal Credit Union System...to make more available to people of small means credit for provident purposes through a national system of cooperative credit.’’
The core mission was NOT forced on credit unions. The founders of the CU movement created CUs for that purpose. Regulation came much later. D Skinner (PhD in Finance), Ashland Community FCU.
It is a very informative article.
This was very imformative and good to know
very good explanation of payday lenders and opportunities for CU's
Very Helpful - Thanks
A Strategy To Centralize Lending And Inc...
Sophisticated Financial Tools Offer Big ...
Lessons from a Bangladeshi Banker
1001 Connecticut Ave. NW Suite 1001
Washington, DC 20036
P: 800-446-7453 F: 800-878-4712
© 2017 Callahan & Associates, Inc.
All rights reserved