The NCUA board will vote on the its final Payday Alternative Loan (PAL) rule, among two other finals rules, at its Sept. 19 meeting. The meeting will take place at 10 a.m. (ET) at NCUA’s Alexandria, Va. headquarters, and will be streamed online.
NCUA’s PAL proposal would create an additional PAL option, PAL II. The new loan type would not replace the current PAL I loans.
PAL II loans would be permitted up to $2,000, with no minimum, and a maximum loan term of up to 12 months. Currently, PALs are restricted to amounts between $200 and $1000 and a six-month term. PAL II loans would not have the 30-day membership requirement.
While CUNA appreciates NCUA’s efforts to expand opportunities to provide short-term, small-dollar credit, CUNA also raised several issues with the rule as proposed.
Other items on the agenda are: