A credit union in Kansas city called Boeing
Wichita Credit Union has recently launched a new program.
Members of this credit union will be able to take out loans
of up to 20% of their monthly income up to $500 dollars
at an interest rate of 36 percent a year. This differs from
payday loan companies who charge an annual interest rate
of around 400 percent.
Furthermore Wichita Credit Union isn't
the only company increasing new programs to combat the
ugly payday loans industry. The Credit Union of America
recently introduced a "second chance" loan program
a few months ago. Members of the credit union who take on
such a loan must take an online financial education class
it developed with Consumer Credit Counseling.
Also, the government run Federal Deposit
Insurance Corp. (FDIC), created guidelines for banks who
wish to create small-dollar, low interest loan programs.
Things look up in the combat against the
payday loans industry. Hopefully change spreads quickly
so people all over the country can get help.