The Economic Solutions Council brings credit unions the following resource page on short term, small amount loans (alternatives to payday lending).
Included within this resource page are NCUA letters on the subject and sample loan product documents from four Michigan credit unions along with a payday loan toolkit from REALSolutions. It is the responsibility of each individual credit union to perform their own due diligence and to verify their program is in compliance.
To begin, the Council provides an overview of six payday loan programs, three from Michigan credit unions and three models provided by REAL Solutions.
Michigan Credit Union Samples
The following credit union sample programs include scanned documents. Individual credit unions must work with their forms vendors to develop their own documents.
Sample 1. Program - open end
Sample 2. Program - open end
Sample 3. Program - closed end
Sample 4. Program - a unique approach
7535-01_U Short Term, Small Amount Loans
12-CFR-701 - Short Term, Small Amount Loans
Letters to CUs 09-FCU-05 Pay Day Lending
Letters to CUs 05-FCU-03 Overdraft Protection(Bounce Protection) Programs
Letters to CUs 01-FCU-03 Pay Day Lending and Title Loans
Letters to CUs 99-CU-05 Risk Based Lending
Click here for additional information regarding REAL Solutions
The Economic Solutions Council presents you with the REAL Solutions implementation guide (toolkit) for payday lending in a section format. For the hyperlinks to work, you need to download the entire 121-page toolkit. REAL Solutions is in the process of updating this implementation guide (toolkit) to reflect the new regulations.
Payday Lending- A REAL Solutions Implementation Guide
REAL Solutions Payday Loan Worksheet - Excel spreadsheet that aids financial analyses of programs
REAL Solutions Questionnaire - Number of questions to answer that aids a credit union setting up a program
Publication, Author Information
Table of Contents
Section 1. Introduction
Section 2. Implementation Considerations
Section 3. Product Design
Section 4. Product Pricing & Profiles
Section 5. Regulations
Section 6. Business Plans, Policies & Procedures
Section 7. Marketing the Product
Section 8. Managing Collections & Charge-offs
Section 9. Education & Training
Section 10. Measuring Success
Section 11. Other Resources & References
Model 1. Wright-Patt CU - Stretch Pay
Model 2. Missoula Federal CU - Payday Alternative Loan (PAL)
Model 3. United CU - UCU CASH
Model 4. Northwest Community CU - Paycheck Today Line of Credit
Model 5. Hershey Federal CU - Better Choice
Model 6. Veridian CU - Paycheck Advance Loan
Model 7. Four Corners FCU - Paycheck Advance Loan
Model 8. 1st Financial Federal CU - Fast Ca$h Loan
Model 9. Rivermark Community CU - Payday Advance Loan
Model 10. Prospera CU - GoodMoney Payday Loan
Exhibit 1. Alternative Credit Reporting Services
Exhibit 2. Payday Loan Systems
Exhibit 3. Acronyms
Click here to download the entire Payday Lending toolkit from REAL Solutions.