New Fair & Manageable Alternative to Payday Loans
Seeking Partners for Pilot Alternative to Payday Loans
One PacificCoast Bank is excited to announce its pilot of a new alternative to payday loans: the Pal loan. This program will allow individuals to borrow from $500-$1000 dollars to cover an unexpected expense and pay it back in small monthly installments of 8-12 months. This loan is intended to provide a manageable alternative to expensive payday and car title loans that often keep people trapped in debt cycle.
In addition to the loan itself, this program can help build credit, includes financial tips and tools, and provides incentives to save. Our optional Automatic Payment and Savings program includes an immediate $25 incentive that gets deposited into a new free savings account for the borrower. Upon repayment, the same monthly amount will automatically transfer into their savings account each month until/unless the former borrower cancels it.
The program meets or exceeds the FDIC’s guidelines for small dollar loans, with an interest rate of 18% and a $30 financed loan origination fee. This fee is incorporated into the monthly loan payments; it is not paid up front.
The program launched on July 15th 2011 with four partner employers, and One PacificCoast Bank is seeking additional local employers to partner with us. Participating employers will let their staff know that the loan is available, will help them with application questions, and will provide employment verification. There are no fees or financial risks to the employer.
Employer requirements (for-profit or non-profit):
* 25 or more employees
* Most employees are year-round, not seasonal
* Offer direct deposit of payroll to employees
Interested employers should contact Erin Kilmer Neel at One PacificCoast Foundation, firstname.lastname@example.org or 510.663.2253.
For more information about One Pacific Coast Bank,FSB, go to http://opcb.com. Member FDIC. Equal Housing Lender. CDFI Certified Bank.