HARRISBURG (August 2, 2007) – In light of the recent ruling by a Commonwealth Court panel that the loan practices of a payday lending business exploited consumers, Treasurer Robin L. Wiessmann today reminded Pennsylvanians of the Better Choice payday lending alternative, offered by 54 Pennsylvania credit unions with 162 branches throughout the state. The Better Choice payday lending alternative is a result of a collaboration between the Pennsylvania Treasury Department and the Pennsylvania Credit Union Association.
“The decision by Commonwealth Court sends a strong message to payday lending businesses that consumers needing short-term loans should not be open to financial exploitation,” Wiessmann said. “Treasury and the Credit Union Association recognize the demand for these types of loans to address short-term financial needs and we encourage Pennsylvanians to consider Better Choice as an alternative to a vicious predatory loan cycle.”
Better Choice loans provide several advantages that address families’ financial needs in a more sensible manner than predatory loans, which typically charge exorbitant fees and enforce demanding repayment schedules. Better Choice advantages include: financial counseling, available through participating credit unions; an automatic deposit of 10 percent of the loan amount into an interest bearing savings account to help the borrower build a financial reserve; varying loan repayment schedules; a 90-day repayment term; and fixed and low interest rates and application fees.
“Pennsylvania credit unions are proud to partner with the State Treasurer to provide a lower-cost alternative to predator payday lenders to help Pennsylvania consumers become more financially savvy and begin to build wealth,” said Jim McCormack, President/CEO, Pennsylvania Credit Union Association.
To learn more about the Better Choice program and how to join a credit union, visit www.pacreditunions.com. For information regarding the Pennsylvania Credit Union Association, please visit www.pcua.coop.
The Pennsylvania Treasury Department, under the leadership of Treasurer Robin L. Wiessmann, strives to achieve prudent yet competitive market returns for the Commonwealth’s investments, while ensuring that those investments meet the highest fiduciary standards. Treasury also offers a wide range of programs and services to Pennsylvania families, such as helping to make college possible with the Pennsylvania College Savings Program; returning abandoned and unclaimed property to its rightful owner or heir; and funding energy efficient home improvements through the Keystone HELP low-interest loan program. For more information about Treasurer Wiessmann and the Pennsylvania Treasury Department, visit www.patreasury.org.
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