New Project Fights Payday Loans

Posted On: September 16, 2010 at 12:45 p.m.

Filed Under: activists alternative project payday loan

In an interesting new move against payday loan companies, one organization is no longer putting all their effort in regulating, legally, the payday loan industry. Rather, they are working out a way to compete with them. Here is the latest on that story: “Community activists have spent years fighting payday-loan businesses in Kansas City and asking government leaders to regulate them more strictly. [[ads]] Now they are trying another tack — giving those businesses some competition. The Payday Loan Alternative Project, which was started by Communities Creating Opportunity and the Federal Deposit Insurance Corp., intends to offer small loans — $100 to $1,000 — to people who might otherwise seek help from payday-loan businesses. Organizers hope to start up in early 2011, and are trying to raise $300,000, said Eva Schulte, executive director of CCO, a grassroots civic group. The goal is to become a sustainable, ongoing operation that can make $2.6 million in loans within a few years” (http://www.kansascity.com/2010/09/14/2224507/project-aims-to-fight-payday-loan.html). How effective can this be? Will it really work to eliminate the payday loan industry? Is it a better option?

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