San Antonio Credit Union to Offer Loans via QCash
In the midst of regulatory pressure and an expected CFPB proposed rulemaking on small-dollar loans, QCash has signed a deal with San Antonio Credit Union (SAFU) under which SAFU will offer short-term loans via QCash Financial’s lending platform. Using QCash’s automated, cloud-based suite of services, SAFU will process, approve and fund loans in under a minute, with an underwriting process based on members’ financial history with the credit union. Rates and fees are “substantially lower” than those usually charged by traditional short-term lenders, according to QCash.
The QCash loan platform was developed in 2004 by the Washington State Employees Credit Union (WSECU) to serve the growing need among its members for small, short-term loans. WSECU has since begun offering a white-label version of the platform to other financial institutions. “As more credit unions like SACU see the need to offer their members affordable alternatives to payday loans, we believe the QCash platform is the ideal tool to meet the market’s needs,” said Ben Morales, CEO, QCash Financial. “That will become even more important as the CFPB restricts consumers’ access to those small-dollar loans from payday lenders.” The CFPB recently released a report critical of short-term lending fees and collection practices, and the consumer protection agency likely will include new restrictions on lenders in its proposed rule on short-term lending, expected later this year.