Credit Unions offering some type of payday loan alternative is nothing new. What I think is worth sharing are the comments left on this article titled N. Texas credit unions plan to compete with payday lenders.
rgvcowboyfan wrote on 7/2/2009 4:21:43 PM:
Credit unions do not lend you if you have had a tough financial time in the past even though you may be working on improving your finances. Pay day loan companies do not look at your credit score, only at your current ability to pay.
valtwin wrote on 7/2/2009 1:14:11 PM:
Two totally different clienteles. The CUs will only be in competition amongst themselves.
We provide payday loan software for many lenders, and I find payday lenders are much more leniant with, not to mention forgiving, of their customers. This goes a long way. Payday lenders are open to re-lending to customers that have been a late payers are delinquent in the past. I don’t think credit unions or banks are like that.
The point is that you can make a cheaper product, but is it necessarily better?
Comments
One response to “Credit Unions competing with payday lenders”
Is it a wonder why banks don't give into consumer groups and offer this product? They do not want to lend to a high risk group.
Get rid of payday lenders and you pretty much lose the product.