Pearl Harbor Federal Credit Union Helps Victims of Predatory Payday Lenders

June 26, 2014

Pearl Harbor Federal Credit Union (PHFCU) has implemented an alternative to traditional payday loans. The Smart Advance is an innovative program that gives members access to a short-term loan without the traditional loan application process. The program offers an interest rate
dramatically lower than the average offered by storefront payday lenders.

Congress and regulators have attempted to take measures to ban predatory payday loans, but without success.  According to a study conducted by Pew Charitable Trusts, a borrower is typically offered about two weeks of credit, which is due in full on the borrower’s next payday and at annual interest rates of approximately 400%. While an individual finds immediate relief, they are often left indebted for months, struggling to repay a loan that was marketed as a short-term solution. Pearl Harbor Federal Credit Union’s new program was created to address this issue.

Advantages of Pearl Harbor Federal Credit Union’s Smart Advance include:
•         There is no Credit Check
•         Longer repayment terms of up to 6 months
•         Easy Application
•         Borrow up to $1000
•         Fast Approval
•         No Outrageous Fees

“Our goal is to help our communities with products and services that will empower them financially,” said Neal S. Takase, President/CEO. “Many individuals in our state, unfortunately, have experienced the negative consequences of a payday lending cycle. With products like the Smart Advance, we can assist and hopefully prevent members from becoming victims of financial abuse.”

“The problem with traditional payday loans is that when one accounts for the fees and the finance charges, paying off the loan becomes very difficult, if not impossible,” said Glen Fukunaga, Vice President of Lending. “The Smart Advance is a better alternative than a traditional payday loan. It provides members access to a small, short-term loan with an option that does not subject them to unreasonable rates and fees. Additionally, our loan officers are available to work with members to determine if this product is the right fit for their situation or if they qualify for a product that is more beneficial.”

Pearl Harbor Federal Credit Union has an on-going commitment to helping improve the well-being of its members through consumer friendly products and free financial education. PHFCU is a growing, federally insured financial institution and a leading financial provider to the island of Oahu. Founded over 77 years ago, PHFCU continues to operate as a not-for-profit, member-owned financial cooperative. Membership is available to individuals who live, work, or attend school on Oahu. Visit PHFCU at to learn more.

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