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State Empolyees’ Credit Union reaches majory milestone with ‘Low-cost payday alternative loan program’

Posted by Stephen on March 3, 2008

State Employees’ Credit Union (SECU) announces it has now surpassed the $1 billion mark for cumulative advances on its Salary Advance Loan (SALO) program, which originated in January 2001 as a low-cost alternative to exorbitant fee payday lenders. SECU has served nearly 100,000 members with the program, saving them $145 million compared to the cost of typical payday loans.

SECU’s loan also boasts a savings component which is key to helping members develop savings and break the payday lending cycle. To date, SECU SALO program users, who had no previous savings, now have cumulative savings exceeding $13.2 million!

Typical payday lenders charge an average of $15 per hundred dollars borrowed, which costs consumers over $150 million for $1 billion in loan advances. In contrast, $1 billion in advances on SECU’s payday alternative costs Credit Union members just $5.9 million!

SECU’s SALO product is a no fee, low interest 12% loan that allows members to borrow up to $500 per month and repay the loan monthly with funds from their next paycheck. The savings feature of SECU’s SALO product automatically deducts 5% of the borrowed amount and places it in a savings account for the member to help cover future expenses, providing a real-life financial literacy example of saving and budgeting for future expenses.

Phil Greer, Senior Vice-President of SECU’s Loan Administration department comments, “As the numbers indicate, SECU’s Salary Advance Loan Program has provided a viable alternative to members who were being taken advantage of by payday lenders. Not only has the Credit Union been able to save members millions of dollars in interest, we have given them a unique way to accumulate substantial savings and make a positive financial difference in their lives.”

He adds, “State Employees’ Credit Union is committed to providing its members with programs and services that meet their needs, without sacrificing their financial well-being. It’s all about ‘Doing the Right Thing’ and we can think of no finer example than putting almost $150 million back into the pockets of our members and North Carolina’s economy!”

About SECU

SECU is a non-profit financial cooperative owned by its members. SECU has been providing the employees of the State of North Carolina and their families with consumer financial services for 70 years. Currently serving over 1.4 million members, SECU provides services through more than 215 branch offices, 975 ATMs, two call centers and a website-www. ncsecu.org.

Editorial piece submitted by Bob Broxton

Opinions expressed by editorial writers do not necessarily represent those of management of Conservative Viewpoints.

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