Payday proposal on credit union agency board agenda May 24

A notice of proposed rulemaking that could create new options for federally chartered credit unions offering “payday alternative loans” (PALs) is slated for consideration during the May 24 open meeting of the National Credit Union Administration (NCUA) Board.

The notice of proposed rulemaking, if released as described in the agency’s spring 2018 regulatory agenda, could offer a PALs II option for federal credit unions while soliciting feedback on a possible PALs III as well.

According to the reg agenda description, the PALs II option would have different terms and conditions than the current PALs, with modified minimum and maximum loan amounts, no minimum length-of-membership requirement, and an increased maximum loan maturity. “All other features of the current PALs rule would be incorporated into PALs II,” the description states. It also says a possible PALs III “could include differing fee structures, loan features, maturities, and loan amounts.”

The NCUA Board’s May 24 open meeting, slated for 10 a.m. ET, also includes consideration of a final rule on involuntary liquidations and claims procedures (expected to clarify the treatment of severance claims); and a quarterly report on the National Credit Union Share Insurance Fund, which insures member deposits in credit unions. A closed meeting, addressing a supervisory action, follows.

May 24 NCUA Board meeting agenda Spring agenda item, payday alternative loans