In a recent interview with KOLR-10, Judy Hadsall, president/CEO of CU Community Credit Union (Springfield), explained how the credit union hopes to offer payday loan alternatives for members in the near future.
After hearing members share their stories, Hadsall said that she became passionate about the issue.
"You can't imagine the amounts of people that come in here that are really, really struggling," says Hadsall. "Everybody says the economy is great, but it's really not."
CU Community Credit Union is currently applying for a $2 million grant from the U.S. Treasury Department's Community Development Financial Institutions Fund. This grant would provide the credit union the money to offer $500 loans with interest rates of 25-30% and longer repayment periods. This program would be likely modeled after this St. Louis Community Credit Union one.
This is a far more affordable option than payday loans. In Missouri, payday lenders can charge interest and fees up to 75% of the amount of the original loan.
Hadsall anticipates a response from the U.S. Treasury by August. Click here to watch the whole interview.