Payday Loan Lowdown

Credit Unions are finally taking on from where payday loans left off. But they are definitely trying to make it easier for customers. In Virginia, credit unions like Langley Federal, which serves about 142,000 members - about half of them military - offers a low-cost loan designed to counter payday lending. Then there is 1st Advantage Federal Credit Union, which has a large membership contingent that’s connected to the Army, rolled out a similar product.

Representatives of the credit unions are confident that since these low-interest loans are now available, they will make payday loans unnecessary. And borrowers may find their options for quick, short-term, high-cost loans limited in the near future anyway. Payday lenders are coming under scrutiny from legislators nationally and in Virginia because of the fees they charge. Dailypress.com reports:

State Del. Harvey Morgan, R-Gloucester, has repeatedly expressed regret for penning legislation that opened the door for the lenders in the state in 2002, and he serves on a committee examining ways to force payday loan firms to curb their activities, such as by limiting the number of payday loans anyone could have at one time.

Read more: Consider alternatives to skirt payday-loan trap

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