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Webinar 6: Payday Lending by Rex Johnson

Tuesday, July 26, 2005 - 16:15

"There isn't any segment of lending that is growing as fast as Payday Lending. I was recently in a large town where 30 Payday Lenders opened new offices in a 5 mile radius. Show me the last time you saw 30 credit unions in a 5 mile radius anywhere!” -Rex Johnson, LSCI Founder. Members are using ‘Payday Lending’ whether you like it or not. The biggest mistake credit unions make is we often try to decide what is right and wrong for members. One day, we’ll wake up and determine that members are very capable and will make their own decisions. This webinar is not about whether you should be doing Payday Lending, it’s about how the competition is doing it and what the member is exposed to. This type of lending may very well not be allowed for in your state; however, your members will still be seeking those loans. You need to know how it works and how to explain it to the members. Webinar 6 Will Discuss: Are you already doing it and calling it something else such as ‘Courtesy Pay?’ How CUs would basically have negative earnings over the last 4 years without ‘other income.’ How much is the check the member writes you and what the member actually receives. What you need from every member on a payday loan request? How much should you be willing to loan the member? Decision Making-When to say yes, when to say no. What to do once the loan has been approved. Courtesy calls to remind the member. What happens when the member doesn’t have the money to pay it back? How many NSF’s can a member have on their statement and still get a Payday loan?