Category Archives: payday loan alternative

Bridging the gap between credit cards and payday loans

This post was inspired by an article in Cheklist magazine by Richard Kelsky titled “Sea Change on the Lending Horizon.”  Richard makes the following points: Payday Lending Exists Everywhere Credit Can be Abused by the Rich and the Poor The Need Exists He also talks about the need for new alternative products for cash advance […]

by adminComments Off on Bridging the gap between credit cards and payday loans

Compete with payday lenders. Don’t put them out of business.

Legislators look for ways to make payday loans less profitable all the time. This is bad for the borrower b/c it makes the cost of doing business higher. This cost, ultimately, gets passed on to other borrowers. In an article titled “Loan program helps ‘unbanked’ climb economic ladder: FDIC program aims to help low-income consumers […]

by adminComments Off on Compete with payday lenders. Don’t put them out of business.

Nevada Federal is Out Of Payday Loan Business

Nevada Federal had been offering a loan called AdvancePay, which charged an application fee up front. After receiving this letter from the National Credit Union Administration (NCUA) chairman, Michael Fryzel; Nevada Federal decided to stop offering their payday alternative product, even though they believed the product was cheaper than other alternatives. What I think happened […]

by adminComments Off on Nevada Federal is Out Of Payday Loan Business

Another bad payday loan alternative article

I’m all for payday loan alternative products. There is room in the market for anything that customers demand, but some of the things these articles allow to print are rediculous. For example, “It’s a high risk to the consumer,” Carrol says. The Better Business Bureau says when you see a triple digit interest rate, beware. […]

by adminComments Off on Another bad payday loan alternative article

Payday Alternative Loans or PALS

Credit Unions are getting into the payday loan business. Not all PALs are a cheaper alternative to payday loans. Actually, it’s against the law for federally chartered credit unions to charge more than 18% on loans. Credit Unions may brag about their 18% interest rate, but they still charge other fees that put the APR […]

by adminComments Off on Payday Alternative Loans or PALS

PALS or just payday loans

Payday Alternative Loans or PALs are a buzz word in the credit union industry. Some credit unions are advertising a 0% APR on their PALs, but charging a 20% documentation fee. “The 20% fee does not accurately reflect the costs of processing applications so the fee should be considered a finance charge under Reg Z […]

by adminComments Off on PALS or just payday loans

Beware of the payday loan alternatives @ credit unions

It’s not new for Credit Unions to try and offer a PAL (Payday Alternative Loan), but beware. For example, this article in the Channel 11 News says: Another pro is you build credit with this program. “If someone is using a payday lender they’re not necessarily able to build credit with it even if they […]

by adminComments Off on Beware of the payday loan alternatives @ credit unions