ALEXANDRIA, Va. (May 24, 2018) – Federal credit union users may have more choices for short-term, small-dollar borrowing under a guideline proposed today because of the nationwide Credit Union management Board.
The proposed rule (starts brand new screen) would produce one brand new item aside from the current cash advance alternative (starts brand new screen) that is open to federally chartered credit unions since 2010. The Board is asking for credit union stakeholders to touch upon a potential option that is third.
“The Board’s objective would be to assist individuals of modest means by expanding usage of safe and affordable short-term, small-dollar loans,” NCUA Board Chairman J. Mark McWatters stated.
“Federal credit unions have experienced an alternative that is payday choice since 2010, which was quite effective. Now, you want to produce extra opportunities.”
“Providing affordable credit and assisting members develop monetary security could be the really foundation of this credit union system,” NCUA Board Member Rick Metsger stated. “Federal credit unions have actually, for eight years now, had the opportunity to provide a substitute for the type of predatory lending that will entrap a debtor with astronomical interest levels and costs pdqtitleloans.com online. The NCUA Board really wants to provide federal credit unions more tools to simply help their users, and we’ll keep people’ requires as well as security and soundness uppermost inside our minds even as we continue.”