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County hears presentation on payroll‑deducted 'salary access' loans as an alternative to payday lenders
Summary
A representative of Access Loans proposed a payroll‑linked loan program offering $1,000–$5,000 at roughly 23.99% APR repaid through payroll to reduce employees' reliance on payday lenders; HR cautioned about payroll workload and existing benefits.
County commissioners heard a work‑session presentation on a ‘salary access’ payroll‑deduction loan product intended to give employees emergency access to $1,000–$5,000 without a credit check and with repayment via payroll.
John Grogan of Access Loans said the program targets public‑sector employees (who have low turnover) and some health‑care workers, offering a guaranteed‑issue loan with funds delivered the next business day and a simple interest rate of about 23.99% APR. Grogan contrasted that cost with payday loans, which he said can charge hundreds of percent APR and create cycles of repeated borrowing. He noted the product could be implemented with no cost to the county if integrated with payroll systems and said it can help employees who cannot access traditional credit.
Ralph Barnes, HR director, said any payroll integration would require work in Workday and would not be “no cost” to payroll; he called the idea a policy decision the county should consider carefully and noted existing options available to employees, including CARES Act and 401(k) provisions and leave policies. Commissioners asked about the administrative workload, eligibility, and safeguards; Grogan said Access Loans would compensate for additional integration work if necessary and that loans would be reported to credit bureaus to help borrowers build credit.
No formal action was taken; commissioners asked staff to consider details and follow up if they want to pursue a pilot.
