How one Michigan credit union is helping ease customers from payday loans

[TexasTowelie]

HASTINGS—The scenario had become all too familiar to Amy Byers.

Would-be clients would come into Thornapple Credit Union branches south of Grand Rapids, desperate to get out of payday loans.

“Half the time they would come in almost in tears, saying, ‘I don’t have the money to pay them back,’” recalled Byers, CEO of the Barry County-based credit union.

So the credit union launched what it calls a Mulligan Loan, a name borrowed from a golfer’s second chance at correcting an errant tee shot, which carries an 18-percent interest cap.

Read more: https://www.bridgemi.com/quality-life/how-one-michigan-credit-union-helping-ease-customers-payday-loans

[msongs]

1. 18% interest is gouging nt

[TexasTowelie]

2. Yes, it's high for a credit union.

When I was a state employee loans were at 14% while the interest rate for deposits was around 6%.

However, loans at a payday loan company are at 400% or more. So the credit union is getting $68 on the maximum loan of $ 750 after six months. The payday loan company is getting around the same amount every two weeks if the customer keeps rolling the loan over every paycheck.