View Rule

The NCUA previously proposed an amendment to the NCUA’s general lending rule to provide Federal credit unions (FCUs) with an additional option to offer Payday Alternative Loans (PALs). This proposal did not replace the current PALs rule, but rather was an alternative, with differing terms and conditions, for FCUs to offer PALs to their members.  Specifically, this proposal (PALs II) differs from the current PALs rule by modifying the minimum and maximum amount of the loans, eliminating the minimum membership requirement, and increasing the maximum maturity for these loans. All other features of the current PALs rule are incorporated into PALs II. The proposal also posed specific questions to solicit comments and feedback from interested stakeholders on the possibility of creating a third alterative (PALs III), which could include differing fee structures, loan features, maturities, and loan amounts. The NCUA is working toward finalizing a PALs II rule.