July 29, 2015

NCUA video gives education on payday loans, alternatives

NCUA's new video, "Understanding Payday Loans," released yesterday provides consumers with an overview of how payday loans work and highlights payday alternative loans available to members of federal credit unions that offer them under NCUA regulation.

The video, available on NCUA's YouTube channel, shows that every year, almost 12 million people in the country take out payday loans, which can have higher interest rates and fees than other forms of credit.

"By providing information about payday loans and alternatives to payday loans, we can help consumers make informed choices and avoid a potential cycle of debt and dependency," NCUA Board Chairman Debbie Matz said.

The video is part of NCUA's Consumer Report series developed by the agency's Office of Consumer Protection. NCUA has more financial literacy and consumer protection resources available on its consumer website,