Family First Federal Credit Union to Help Members Avoid Payday Loan Pitfalls with the Launch of Instacash

Date : 05/05/2008 @ 9:02AM
Source : Business Wire
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Family First Federal Credit Union to Help Members Avoid Payday Loan Pitfalls with the Launch of Instacash

Family First Federal Credit Union today launched Instacash, a short-term loan designed to assist members who need cash quickly. Instacash has lower fees and interest rates than other commonly used methods such as PayDay Loans.

“It is not uncommon for situations to arise where our members need to gain access to cash quickly,” said Ben Wiseman, assistant vice president of consumer loans. “We felt it was imperative to offer a better solution than traditional payday vendors, to allow our members the ability to save a substantial amount of money each month, by breaking out of the debt cycle and start on the path towards financial stability.” Unlike payday or cash advance loans, Instacash is a monthly line of credit that members can access when they need cash. It offers a longer, 30-day repayment term with lower fees and interest rates than other commonly used methods. Members will also pay only 18 percent APR – that is considerably less than the annual rate of 400 percent that borrowers have been accustomed to paying on various payday loans. In fact, according to a study conducted by the Center for Responsible Lending, borrowers pay $4.2 billion every year in excessive payday lending fees.

Instacash is an affordable, short-term loan that offers: 30-day repayment term Flexible payment plans $10 participation fee per $100 loaned $100 minimum loan $300 maximum loan for first-time borrowers; $700 for return borrowers 18 percent annual percentage rate Available starting today, members are encouraged to apply online at www.familyfirstcu.com. For additional questions and information, members can visit any Family First branch or call 801-265-6020.

ABOUT FAMILY FIRST FEDERAL CREDIT UNION Family First Federal Credit Union has been providing excellent financial services since 1947. Branches are located in American Fork, Pleasant Grove, Orem, Springville, Payson, Lindon, a Home and Business Loan Center in Orem, and offers online services at www.familyfirstcu.com. Anyone who lives, works, or attends school in Utah County, or has a family member who does, is eligible for membership. As your primary financial institution, Family First Federal Credit Union is dedicated to providing its members with high-quality service, friendly staff, and convenient account access to better meet their needs.

Jennifer Stoddard, Special Assistant to the President, Member Services, also appears monthly on ABC4’s “Good Things Utah” providing financial advice and answering questions about finances. Family First has a section on its Web site dedicated to answering questions called “Ask Jenn.” The “Ask Jenn” feature can be found on Family First’s Web site at https://www.family1stcu.com/askJen.php.

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