The results of a new payday loan study by the University of California Graduate School of Management entitled, “Are Credit Unions Viable Providers of Short-Term Credit,” the study by professor Victor Stango suggest borrowers seeking small, non-collateralized, short-term loans prefer to pay higher rates for “small, short-term loans than to participate in credit union programs that have strings attached, such as a savings component or a financial education requirement.”

Additionally, credit unions find that consumers resist their products due to shorter operating hours and a payday loan type of product offered by credit unions can harm a consumers credit rating; something payday loan stores do not do.

Titled, “Are Credit Unions Viable Providers of Short-Term Credit,” the study by professor Victor Stango comes as credit unions are petitioning regulators to increase charges on payday loans. The National Credit Union Administration.

Read the full Study here.