Payday Loans: The Color of Money

Credit Union Journal, The, November, 2007

There was a time, when payday lending was new for credit unions, that credit unions wanted to avoid the tarnish of the payday tag.

But now they're being told to embrace it.

Kristin Van Schyndel, marketing director at Prospera CU, said the Appleton, Wis., credit union intentionally broadcasts its short-term advances as payday loans so that consumers know right off the bat that it is a similar product to the one they are getting at high-priced payday lenders. "Don't shy away from the term payday," she urged during the CUNA Lending Council conference.

So ads and marketing materials for Prospera's GoodMoney program clearly define the product as a payday loan, she explained.

Langley FCU, which operates a successful payday program for its mainly military membership, also uses the payday loan moniker in its ads, said Barbara Elvington, chief operating officer for the credit union, based ...