Many months ago, the National Credit Union Administration announced its intends to expand payday alternative loan choices for credit unions. The initiative that is new on producing an additional item that credit unions could use in their offerings along with existing PAL programs.
The proposed guideline for Payday Alternative Loans II would include four key changes:
- Eliminating the loan that is minimum and setting a maximum loan quantity at $2,000- establishing a maximum term of year- No minimal period of credit union account needed- No limitation from the wide range of loans credit unions will make to borrowers in a six-month period (provided that the debtor just has one outstanding loan at the same time). Continue reading →