Payday Plus SF
The better small dollar loan
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The Office of Financial Empowerment has partnered with five credit unions to offer an alternative payday loan at interest rates far below what commercial payday lenders charge. Now clients can borrow up to $500 and pay it back over 6-12 months at a maximum APR of 18%.
Our aim is to reduce the practice of payday lending in San Francisco by offering a healthy alternative that will help payday loan customers get out of -or avoid -the debt trap. Payday lending, sometimes known as a cash advance, is a short-term, usually high interest loan that is intended to bridge the borrower's cash flow gap between pay periods. At for-profit payday lenders, interest rates can run as high as 400% APR - usually $15 per $100 borrowed. The majority of borrowers are unable to pay off their loan within the two-week loan term and there is often no option to pay the loan in installments. The typical payday customer will repay $793 on a $325 loan (Center for Responsible Lending). The volume of Payday Lending businesses in the United States is estimated at $28 billion a year, and has grown by over 100% in the past five years.
Payday Plus SF is available at Community Trust - a division of Self-Help Federal Credit Union, Northeast Community Federal Credit Union, Redwood Credit Union, San Francisco Federal Credit Union, Spectrum Federal Credit Union.
Clients can call 2-1-1 for more information.
Payday Plus SF Brochure
Payday Plus SF Frequently Asked Questions
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Mark Laws
My Life is True
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It can happen to anybody: your funds run low, you have an emergency and you need some cash to see you through the next payday. At times like that, it can be tempting to take out a payday loan. But these loans have a risky flip side. The lenders charge high interest rates. Also, if you can't pay off the loan quickly, you need to take out another. This can lead to a nasty cycle, driving you deeper and deeper into the hole.
Mark Laws found himself in a similar situation and was able to find the help he needed through a Payday Plus SF partner credit union.
My Life is True captures his story, listen here
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My Life Is True is a a public radio experiment from Anne Stuhldreher and Douglas McGray, portraits by Wendy MacNaughton. To hear more stories like Mark Laws, follow them on Twitter @My_Life_Is_True
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