Ken is a disabled senior who needed to refill his drug prescription. Lacking funds, he obtained
a short term loan from the credit union to pay for the medicine. He repaid the loan within 2
weeks with the interest being less than $1. If he had borrowed the amount from a payday loan
lender, the $40 loan would have cost nearly $100. When seniors are unable to afford their
medications, they either forego their medicine or pay exorbitant fees to borrow the money. An
average payday loan borrower pays back $793 for a $325 loan.
John and Jane are a handicapped couple in which both parties require wheel-chairs and one is
legally blind. The monthly stipends they received were spent helping their daughter. Facing
eviction for not having paid rent for 3 months at the low income housing project, they applied for
a $1,500 loan. It took them 2 years with monthly payments of $137 to pay off the loan.
John is a return member of the credit union. After keeping an account here for 8 years, he closed
his account and opened one at US bank because they offered ATM. Very quickly, he became
frustrated with the bank. Between the times of withdrawing funds from the ATM, he wrote a
check with insufficient funds incurring a fee of $39. Within a few months, he was charged
over $100 in fees. He couldn’t understand what was happening with his account and was
unable to obtain a satisfying answer from the staff. Without full knowledge of account balances
and minimum requirements, he closed his account. Once he reopened an account with the credit
union, he applied and received a much needed $300 loan to pay his bills.
Linda borrowed $3,000 to pay for her sister’s funeral expenses. She had earlier applied for a
loan with a payday loan company; she would receive $2,525 after a fee deduction of $475.
The loan terms were 43 payments of $216.55 for 3 ½ years. The interest rate was 99.23%.
The credit union was able to provide her with a no-fee loan for 2 years at 18% with monthly
payments of $149.50.
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