CUNA
  • Advocacy
    • Priorities we’re fighting for
    • Actions you can take
  • News
  • Learn
  • Compliance
  • Shop
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • COVID-19
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact
Learn More about Member Value

News

Member Benefits
Learn more
Learn more about the benefits of membership.
Home » CUNA advocates for PAL change to increase consumer access
Policy & Issues

CUNA advocates for PAL change to increase consumer access

March 26, 2020
Conv

CUNA recommends NCUA issue an interim final rule on Payday Alternative Loans (PALs) to ensure credit unions have the flexibility necessary to meet members’ needs during the coronavirus disease (COVID-19) pandemic. Specifically, a rule eliminating the requirement that a borrower “be a member of the credit union for at least one month” before receiving a PAL I.

“In contrast, the one-month membership requirement does not exist for the recently adopted PALs II program, CUNA’s letter reads. “In this instance, the agency has “good cause” to bypass the Administrative Procedure Act’s notice and comment requirement and issue an interim final rule because the rulemaking would be made in response to an emergency situation.”

“We believe the mandated waiting period for PALs I is unnecessary and, given the fast-moving nature of the current crisis, could ultimately hinder the ability of new credit union members to access the full suite of small-dollar loans available to meet their needs,” the letter added. “This action would also be consistent with the spirit of the joint statement encouraging financial institutions to work with borrowers and to offer responsible small-dollar loans.”

As the impact of COVID-19 is felt across the economy, CUNA also said “a consumer in financial distress engaging with their local credit union and inquiring about membership for the first time should not be arbitrarily disadvantaged in the current environment.”

NCUA issued a letter to credit unions Thursday in conjunction with a federal financial regulators statement encouraging responsible small-dollar lending due to the COVID-19 pandemic.

KEYWORDS coronavirus ncua
Credit Union Magazine - Spring 2021

Spring 2021

Credit Union Magazine’s Spring 2021 edition features CUNA's 2021 advocacy agenda, strategic planning guidance, and labor market insights.
Digital Edition •  Subscribe

Trending

  • Cheryl Deborde named Credit Union Hero of the Year

  • PCA flexibility coming soon from NCUA

  • CFPB proposes delayed effective date for recent debt collection rules

Tweets by CUNA_News

Polls

How have vaccination efforts affected your remote work policy?

View Results
More

Champion of America’s Credit Unions

Credit Union National Association is the only national association that advocates on behalf of all of America’s credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • About
  • Careers
  • Contact Us
  • Recommended Websites
  • Privacy Policy

Resources for

  • CUNA Board Members
  • Credit Union Advocates
  • Leagues
  • Press
  • Vendors