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Dec 10, 2014

Credit Unions Can Help Ward Off Payday Lenders

It is time more credit unions stepped into the space that predatory payday lenders have taken over. Payday lenders often plant themselves right next to mainstream financial institutions - offering complementary loan services that credit unions could be providing at a lower cost, according to a new Filene Research Institute study, "The Impact of Two-Tiered Banking: How Credit Unions Can Bridge the Divide." Many credit unions deny small-dollar loans to consumers with limited credit histories who may be good candidates. And some consumers choose payday lenders over credit unions because they want convenient hours and shorter wait times.

Read the Op-ed here.