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Some Credit Unions Are Still Involved In Payday Lending

Thursday, May 16, 2013 - 6:55 PM
From Consumerist:
Loans from federal credit unions are currently capped at 18%, though some qualifying short-term loans can go as high as 28% (plus a $20 fee). These numbers are far below the standard three-digit APRs you see on payday loans, but a small number of credit unions are still figuring out ways to hook customers up with these questionable, high-interest loans.

...[According to the National Consumer Law Center (NCLC)], the vast majority of credit unions offer responsible loans to their members. ... “Unfortunately, a few credit unions threaten to taint the rest of the industry by offering predatory loans to their members.”

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The article includes a link to the full list of credit unions involved in making payday loans.  The credit unions either make the loans directly or have an arrangement with a third party that uses the credit union’s name and makes the loans at APRs ranging between 141% and 269% APR
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