Pearl Harbor Federal Credit Union Helps Victims Of Predatory Payday Lenders



PEARL HARBOR FEDERAL CREDIT FUND LOGOHONOLULU – Pearl Harbor Federal Credit Union (PHFCU) has implemented an alternative to traditional payday loans. The Smart Advance is an innovative program that allows members to access a short term loan without the traditional loan application process. The program offers an interest rate
significantly lower than the average offered by in-store payday lenders.

Congress and regulators have attempted to take action to ban predatory payday loans, but to no avail. According to a study by Pew Charitable Trusts, a borrower is typically offered around two weeks of credit, which is due in full on the next payday and at annual interest rates of around 400%. While an individual finds immediate relief, he often remains in debt for months, struggling to repay a loan that has been marketed as a short-term solution. The new Pearl Harbor Federal Credit Union program was created to address this problem.

Pearl Harbor Federal Credit Union Smart Advance benefits include:
• There is no credit check
• Longer repayment terms of up to 6 months
• Easy application
• Borrow up to $ 1,000
• Fast approval
• No exorbitant fees

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

“The problem with traditional payday loans is that when you factor in the fees and finance charges, paying off the loan becomes very difficult, if not impossible,” said Glen Fukunaga, vice president of loans. “The Smart Advance is a better alternative than a traditional payday loan. It offers members access to a small, short term loan with an option that does not subject them to unreasonable rates and fees. In addition, our loan officers are available to work with members to determine if this product is best for their situation or if they qualify for a more beneficial product.

Pearl Harbor Federal Credit Union is continuously committed to helping improve the well-being of its members through user-friendly products and free financial education. PHFCU is a growing, federally insured financial institution and one of the major financial providers on the island of Oahu. Founded over 77 years ago, PHFCU continues to operate as a non-profit, member-owned financial cooperative. Membership is available to people who live, work, or attend school in Oahu. Visit PHFCU at to learn more.





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