Association seeking feedback on NCUA’s PAL II proposal


The New York Credit Union Association is seeking feedback on NCUA’s proposed plan to allow credit unions to offer additional types of Payday Alternative Loans.

Since 2010, NCUA has encouraged federal credit unions to offer non-predatory short-term loans. Federal credit unions offering PALs are authorized to exceed the federal interest rate cap by ten percentage points. NCUA is now proposing to authorize credit unions to offer an additional type of short-term loan, referred to as PAL II. NCUA is also requesting comments on whether a third type of short-term alternative to payday loans should be authorized for credit unions.

The Association is conducting an online survey to formulate the appropriate response to this proposal. Feedback is requested by July 20. Comments are due to NCUA by Aug. 3.

A copy of the proposal can be found here.

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