credit unions

Nick Castele / ideastream

Credit unions are disagreeing with claims that they will directly benefit from a new bill that’s written to crack down on the payday lending industry. As the credit unions argue, they’re already operating from a different, tough set of rules.

The payday lending industry is threatening to pull out of Ohio after passage of tough new regulations covering short term loans.

Now, at least two dozen credit unions are preparing to fill in the gap by offering an alternative they call "stretch pay."

Members have access to $250 line of credit for an annual fee of $35 and lower interest rates than those of payday lenders.