FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; firstname.lastname@example.org
Washington, D.C. (July 30, 2018) – The National Credit Union Administration is giving credit unions the opportunity to comment on the proposed Payday Alternative Loans (PAL) II rule. Credit Union National Association (CUNA) supports expanding opportunities for credit unions to provide small-dollar, short-term loans, and are in fact ideally situated to satisfy this consumer demand.
“CUNA would prefer a holistic approach to PAL products that would provide credit unions and consumers with flexibility to tailor short-term, small-dollar loans to their needs, without being overly prescriptive,” the trade group wrote in the comment letter filed on Monday. “CUNA retains concern over the overall low (9%) representation of credit unions using the existing PAL program, cognizant that the compliance and entry costs often outweigh the potential benefits to consumers. We believe a parameters-based approach would offer greater flexibility for credit unions to engage this market.”
Additional considerations from CUNA include:
CUNA remains supportive of a repurposed rule that would overhaul the existing and proposed PAL I and PAL II product lines into a singular PAL program that provides flexible ranges so that lending products can be tailored to regional, market and consumer needs.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.