Nov. 14, 2005


Comments

 
 
 
  • 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
    Anonymous
     
     
     
  • 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
    Anonymous
     
     
     
  • Good basic information.
    Anonymous
     
     
     
  • 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.’’
    Anonymous
     
     
     
  • 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.
    Anonymous
     
     
     
  • It is a very informative article.
    Anonymous
     
     
     
  • This was very imformative and good to know
    Anonymous
     
     
     
  • very good explanation of payday lenders and opportunities for CU's
    Anonymous
     
     
     
  • Great overview
    Anonymous
     
     
     
  • Very Helpful - Thanks
    Anonymous