As an example, Orlando Federal Credit Union provides an XtraCash loan that tops down at 266 percent interest per year. Those payday advances are financed by Mazuma Credit Union, a state-chartered credit union in Kansas City.
Saunders, the buyer attorney, stated that regulators should stop these relationships.
вЂњThey should prohibit any federal credit union from partnering with payday loan providers or advertising such a thing themselves,вЂќ she said that they would be prevented from offering.
An NCUA spokesman stated credit unions are permitted to direct customers to payday loan providers from their the internet sites in return for a payment charge. Continue reading