Press
Chesterfield Federal Credit Union Offering Payday Loan Alternative For the Holidays
Chesterfield, VA, 10/22/2012 — Chesterfield Federal Credit Union will once again offer its popular Holiday Help Loan product as an alternative to expensive payday loans for the 2012 holiday season. A Holiday Help Loan offers approval for a small, short-term loan to current members who have been employed by the same employer or receiving retirement or disability benefits for at least two years. Loan amounts range from $300 – $1000 with terms available from 4 months – 9 months.
A typical $500 payday loan will charge $119.79 in fees and interest for a 30-day loan. This equates to a 584% APR. An equivalent $500 Holiday Help Loan offers a 17.95% APR for 6 months for members with at least 5 years of consecutive employment. Monthly payments for this loan are $87.82, with total interest charges of $26.54. This represents a savings of $93.25 for the member, in addition to the benefit of smaller monthly payments, rather than a lump sum payment.
Last year, 274 members took advantage of a Holiday Help Loan, saving them over $32,228.12 in potential payday loan fees. Since introducing the Holiday Help Loan in 2008, Chesterfield Federal Credit Union has saved members over $81,983.72 in payday lender fees. “Chesterfield Federal Credit Union is committed to offering members alternatives to save money. We are troubled by the outrageous fees that our members may be charged for payday loans. Offering an alternative product to help them in the holiday season is a priority for us,” said Jeanne Dotson, President/CEO.
The Holiday Help Loan is available for existing members starting November 13th, 2012 until December 31st, 2012. Full approval requirements and terms are available at the credit unions website, www.chesterfieldfcu.net.
Chesterfield Federal Credit Union is a not-for-profit financial cooperative organized by and for people who share the common bond of working for or providing a service to our members and the community. CFCU has three branch locations: in Chesterfield on Public Safety Way, in Brandermill in the Market Square Shopping Center, and on Midlothian Turnpike in the Midlothian Station Shopping Center. Members can also access the Credit Union through over 5,000 shared branches and 50,000 free ATMs nationwide.
Unlike other financial institutions, Credit Unions are owned and controlled by their members. There are no outside stockholders and no paid Board of Directors. All of the Credit Union’s excess earnings are returned to members in the form of lower interest rates on loans, higher dividend rates on deposits, lower fees and additional services. The all-volunteer Board of Directors is democratically elected by the membership, and each member is entitled to one vote regardless of the amount they have on deposit.
For additional information, contact Chris Miller at 804-639-8023 x108 or by e-mail cmiller@chesterfieldfcu.net