Pennsylvania Credit Unions Provide Payday Lending Alternative

By Keith L. Rolland, Community Developing Advisor

Cash-advance organizations, also referred to as payday loan providers, offer loans to working customers whom require immediate money before they get their next paycheck. Consumers give a post-dated check or electronic bank account information as security for the loan. The annual percentage rate (APR) of interest for a 14-day advance of $100 or $200 can be 460 percent at a payday lender.

There are many than 23,000 cash advance outlets nationwide. The quantity has quadrupled into the previous 3 years. The loan that is payday reported a lot more than $40 billion in loan amount and built-up $6 billion in finance fees in 2005. In 2006, during an impasse over regulatory and legislative proposals to deal with payday financing in Pennsylvania, previous banking assistant A.