Friday, October 12, 2007

In Payday Battle: Banks AWOL, Credit Unions Get Praise

Credit unions deserve recognition for stepping up to help low-income households obtain small, low-interest loans, the Virginian-Pilot reported in its Oct. 8 edition.

The Pilot cited two credit unions, Langley Federal Credit Union in Hampton and Newport News Shipbuilding Employees Credit Union, who have offered small loans with lower interest rates to members.

Many low-income Virginians have been left behind by banks, so payday lenders "have slithered in to fill the void," said the article. Some lenders charge more than 300% interest on the loans, burying borrowers further into debt.

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