Allows a federal credit union to offer a PALs II loan for any amount up to $2,000.The final rule, known as PALs II, does not replace the existing payday alternatives loan option (opens new window). This is an example of the fundamental credit union principle of people helping people.” Particularly when coupled with financial counseling, as many credit unions provide, such lending can be a powerful tool to help people get out of debt and climb the ladder toward financial security.
We want to encourage responsible lending that allows consumers to address immediate needs while working towards fuller financial inclusion. “This can make a difference by helping borrowers build or repair credit records, allowing them to graduate to other mainstream financial products. “The PALs II rule is a free-market solution that responds to the need for small-dollar lending in the marketplace,” NCUA Chairman Rodney E. Final Payday Alternative Loans Rule Provides Greater Flexibilityįederal credit unions will be able to offer more payday alternative loan options under a final rule (opens new window) approved, 2-1, by the NCUA Board. The Chief Financial Officer briefed the Board on the performance of the National Credit Union Share Insurance Fund.
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