KANSAS CITY, Mo. — The large amount of members that havechecking accounts and use payday lenders was one of the motivatorsbehind the launch of XtraCash, LLC as an alternative for the creditunion industry.
|The payday lending CUSO made its debut in March 2007 at twoMazuma CU branches and has since expanded to 11 branches. CentralStar CU in Wichita, Kan. has also signed on with XtraCash, saidLisa Renner, CEO of CU Holding Company, LLC, a wholly-ownedsubsidiary of Mazuma CU.
|From March through the end of 2007, XtraCash processed more than2,500 loans totaling more than $920,000. XtraCash provides aWeb-based system software, underwriting, collections, servicing,training, and incurs all loan loss.
|At least 15% and up to 30% of members and CU employees usepayday lenders, Renner said. Of that amount, 100% have checkingaccounts.
|“Payday lenders are smart,” Renner said. “How long will it bebefore they start offering [their clients] checking accounts? We'vegot that many people at risk of walking out the door [of a creditunion].”
|As an incentive, XtraCash offers several discounts to CUs ifthey offer a payday lending educational component and to those whohave a checking or savings account at a CU.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
