Topic: Cash Plus Money Loan - Lenders try hand at payday loans - Columbia Daily Tribune
WASHINGTON - After years of watching check-cashing stores and payday lenders steal potential customers, banks and credit unions are beginning to offer the same services and products but in more affordable and responsible ways. Kinecta and Wescom will offer new payday loans that place portions of the loan fees in credit union savings accounts that the borrowers can access after six months if they meet the terms of the loan agreements. The Wescom and Kinecta models were pioneered by Union Bank of California, which bought a 40 percent stake in Nix check-cashing stores in 2000. Today, Union operates a separate chain of "Cash & Save" branches that aren’t affiliated with Nix and that offer check-cashing services and basic savings and checking accounts. KeyBank, a Cleveland-based bank with branches in 13 states, also is using check-cashing services to attract low-income consumers who lack bank accounts. Find Out More
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