Associate Supports Flexibility & Cautions Against Complex Rules for NCUA PALs

The MD|DC Credit Union Association has submitted a comment letter to the NCUA on payday alternative loans (PALs).

Based on input from member credit unions, the Association asserts in the letter that credit unions can better serve communities if they have flexibility in offering PALs. However, the Association cautions against creating products that are too burdensome and complex that credit unions are discouraged from participating. This could lead to consumers choosing traditional payday lending and getting caught in a cycle of debt.