Measuring the True Cost of Credit with Oportun

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“Work for opportun. Which is a provider of affordable and credit building loans for low low income hispanic communities in the united states. We re also community development financial institution were interested in working with safeassign to help us understand how much our customers were saving in terms of interest in fees by taking a loan from us versus going to other widely available products like payday auto title pawn cfus. I created a model for us.

Which measures and compares the amount that customers actually pay in total for different types of small dollar products like payday auto title installment loans and then also opportune and then they compared them and took into account actual real life incomes and available cash flows of consumers to be able to really do an apples to apples. Comparison of what the true kind of cost impact was to the consumer at the end of the day..


See if as i was the perfect partner. They really understand consumer attitudes and needs for consumer credit. They also have a really robust understanding of the marketplace and the types of options that are available for consumers cfus. I helped us do the math really an understanding how we have helped each and every customer save money on their loan by going with opportune versus a more expensive product and in total over the at that point nine years that we ve been doing business.

We have saved customers over three hundred and forty million dollars in interest in fees. The result is that we now have the data that actually shows that other products are an average three times more expensive and in some cases seven times more expensive than the product that we provide our customers..


What we saw is that these products like payday and auto title are are marketed as products that you pay back and let s say two to four weeks. But in actuality. It takes consumers many months to pay those back sometimes five to six months or even longer and in comparison of product like ours. Which already gives a consumer that much time if not more to pay back um is a much more successful and lower cost product for them.

We d love to see other financial services. Companies take a similar approach in understanding their impact of their high quality products on on low to moderate income communities..


Really looking at it from the customers perspective and understanding their day to day costs expenses and really what kinds of available cash flow and disposable income. They have to put toward these types of products is very important we encourage other financial service providers to use this type of model that cfus. I did for us. I think it s an excellent way to really understand the true impact from a customer s perspective about how their products are helping consumers.

Save money. It s important for policymakers to learn about this model..


Because when evaluating the affordability of a loan. It s important to look beyond the apr this model allows them to do that it allows them to look at a confirm a consumers perspective. What they truly ” ..

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