In Wisconsin, the number of payday loan stores grew by 18 in 2008; 542 payday lenders wrote $723 million in loans. It is well within the mission of credit unions to provide a solution for consumers' short-term loan needs.
Past News ReleasesRSS
Appleton, Wis. (PRWEB) September 30, 2009
The nationally recognized GoodMoney® payday loan alternative has reached an exciting milestone. As of August 2009, compared to average payday loan costs, GoodMoney has helped consumers throughout Wisconsin save more than $1 million dollars in fees by offering the not-for-profit payday loan alternative. In October 2008, Prospera Credit Union began offering its GoodMoney Turnkey Solution to credit unions nationwide.
"Helping consumers save $1 million in payday lending fees is an exciting and pivotal milestone for GoodMoney," said Ken Eiden, CEO of Prospera Credit Union. "Many people who use typical payday loans never see an end to the cycle of debt. Our goal is for consumers to have the choice to use a not-for-profit alternative to payday lending wherever traditional for-profit paydays loans are offered."
GoodMoney provides a lower cost alternative to consumers looking for a short-term loan. The program also stresses financial education, creating a more informed borrower and access to other financial products to increase their financial stability.
Given the current economic climate and the costs of predatory payday lending, the time is right to help people find an alternative. The Center for Responsible Lending (CRL) estimates that payday lending costs Americans $4.2 billion annually and the average payday borrower pays $793 to borrow $325.
"The reality is, that while not an ideal solution for consumers, payday loans are certainly a product consumers want and need," said Eiden. "In Wisconsin, the number of payday loan stores grew by 18 in 2008; 542 payday lenders wrote $723 million in loans. It is well within the mission of credit unions to provide a solution for consumers' short-term loan needs."
For the past three years, more than 19,000 GoodMoney payday loans have been processed for loans totaling nearly $7 million. The money saved on these types of loans may potentially be reinvested in local communities and more importantly help consumers reduce their debt and start saving for their futures.
GoodMoney Turnkey Solution Offered to Credit Unions Nationwide
In October 2008, Prospera Credit Union announced that it would offer its GoodMoney Turnkey Solution to credit unions nationwide. For a reasonable start-up fee, credit unions have access to comprehensive training, advertising support and marketing materials. Also included is customized software provided by CU*Answers.
To date, four credit unions outside Northeast Wis., have signed up to offer the GoodMoney product: Superior Choice Credit Union, Superior Wis.; Delta County Credit Union, Escanaba, Mich.; Frankenmuth Credit Union, Frankenmuth, Mich.; and Tri-Rivers Federal Credit Union in Montgomery, Ala.
Credit unions who are interested in the GoodMoney Turnkey Solution may call Eiden at 920.882.4800 or visit http://www.goodmoneystore.com/consulting.
GoodMoney began as a collaborative effort with Prospera Credit Union, Goodwill Industries of North Central Wisconsin and Financial Information and Services Center (FISC) in 2005. Prospera's GoodMoney has received nationwide attention from The New York Times and USA Today. It has also received the credit union industry's Herb Wegner Memorial Award and spurred numerous inquiries from credit unions across the country.
About Prospera Credit Union
Prospera Credit Union is a community credit union with five full-service branch locations and approximately 15,000 members throughout Northeast Wisconsin. The mission of Prospera is to help people prosper financially to enhance their quality of life.