WOODBRIDGE, Va. – Fort Belvoir Federal Credit Union is gettingbig volume on its payday loan alternative – close to $600,000 inthe first year. “We consider our Advance Pay Loan a real successstory,” said Patricia S. Kimmell, president/CEO of the $203 millionFort Belvoir. The payday product, introduced in January 2005, isaimed at helping reduce military dependence on the high-interestproducts offered by the payday outlets near the U.S. Army base. TheAdvance Pay Loan allows members to receive up to $500 cashimmediately without incurring high interest and without a creditcheck. Members have up to three months to repay the loan at a rateof 16-18% APR. Since the product was offered, FTBFCU has issued 665loans for a total of $575,052. The experience of Fort Belvoir andother CUs in providing payday alternatives comes amidst newPentagon scrutiny on ways to curb exploitation of militarypersonnel by the payday firms.
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