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Article: Mazuma Hits Roadblocks As It Attempts To Help.(Kansas City credit union offers alternative to payday lending operations)(Brief Article)
- Article from:
- Credit Union Journal
- Article date:
- September 2, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With nary a bank in sight and a large population of low-income residents in need of cash, payday lenders in midtown Kansas City, Missouri, have the upper hand.
On average, they charge between 15% and 18% per $100 borrowed and roll that over every two weeks on any loan that still has a balance due.
"By the time these loans get paid off, they've collected anywhere from 200 to 400% interest," said Rob Givens, CEO of Mazuma CU, Kansas City.
Those types of lending practices made Givens angry enough to take action. Unfortunately, he said, state regulatory guidelines are holding him back. In March, his community credit union with $240-million in ...