NPR: Credit Unions Seek Payday Loan Consumers

National Public Radio's (NPR) "Morning Edition" reported Oct. 15 on credit unions' efforts to help consumers avoid payday loans with high rates.

NPR host Steve Inskeep noted that "a growing number of credit unions hopes to steer consumers who are strapped for cash away from payday loans by offering less expensive alternatives."

Reporter Cheryl Corley interviewed a woman who had used payday loans, and Ed Jacob, CEO of the North Side Community Federal Credit Union in Chicago.

Jacob explained the credit union began offering payday loan alternatives after noticing members were paying interest fees of more than 600% on payday loans. Its short-term loan is for $500, at 16.5%, and is to be repaid in six months.

Click here to read the NPR story online.