Final Payday Alternative Loan rule on NCUA’s Thursday agenda
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:
- Final rule on credit union bylaws. In its comments on the proposed rule, CUNA urged NCUA to take an approach providing federal credit unions to work within the bylaws, as well as an efficient amendments process when deviation is appropriate;
- Final rule on supervisory committee audits. CUNA supported the proposed rule, believing the changes would make compliance with the requirements less burdensome.; and
- A quarterly update on the National Credit Union Share Insurance Fund.