The NCUA board will issue a proposed rule on Payday Alternative Loans at its May 24 meeting, according to the agenda released last week. The meeting is scheduled to start at 10 a.m. (ET), and will be streamed live on NCUA.gov.
NCUA’s PAL program allows federal credit unions to offer small-dollar loans with several specific consumer protections, including a limit on the application fee and prohibition on rolling the loan over. CUNA supports expansion of PAL lending opportunities for consumers.
The NCUA board will also vote on a final rule on involuntary liquidations and claims procedures. The rule would permit an employee’s final paycheck to include compensation for the pay period immediately preceding the liquidation, as well as accrued but unpaid sick and vacation leave, including any severance to which the employee was entitled, provided such terms were documented and objectively applied.
CUNA supported the proposed rule in its comment letter, believing it would improve the current procedure under which wages and severance claims are assigned second priority, subordinate among unsecured claims.