A non-profit aimed at helping people with financial needs is now in Pagedale.
Reddough Money Center opened back in February. The agency is an alternative to payday lending, check cashing and other fringe banking services.
Many may know about the vicious cycle that come with payday lenders, an industry News 4 Investigates has exposed time and time again.
The issue has also caught the attention of the U.S government. Just this summer they proposed new rules to reduce the impact of the industry.
Meanwhile Reddough is taking things a step further, serving as a better option for families in need.
At the non-profit, customers can only borrow a maximum of $500 and instead of the paying off the amount in 14 days, they have four to six months.
Reddough spokesperson Michael O’Brien said it’s about making sure those families aren’t placed in a tight spot.
“If they don’t have the money today, chances are they are not going to have it in 14 days so they end up rolling it over, again and again and that’s when the fees and the interest rate really add up over time and it’s really hard to dig out from under that,” he said.
Meanwhile Rev. Dr. Nathaniel Malone II of First Community Baptist Church of Pagedale took it upon himself to try out the service.
“When you have emergencies or medical or what have you, you have predators that take advantage. It’s no different than hurricanes and people come out of the woodwork,” he said.
Malone told News 4 he knows several people who’ve had to deal the fallout from payday lenders so he wanted to investigate before recommending Reddough to his congregation.
“It allows people to address short-term financial issue but in addition to that they are not creating a bigger burden, a bigger problem,” Malone said.
Reddough says they hope to open another center in St. Louis County in the future.
We have more information on Reddough here.
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