COMMENT CALL: NCUA Issues Proposed Rule for Short-Term, Small Amount Loans

CUNA
May 24, 2010 | COMMENTS

The National Credit Union Administration (NCUA) has issued a proposed rule that would enable federal credit unions (FCUs) to offer short term, small amount (STS) loans as a viable alternative to predatory payday loans that are offered by other financial service providers. This proposal would permit FCUs to charge an interest rate that is higher than the current usury ceiling in the Federal Credit Union Act, but would impose limitations on the permissible term, amount, and fees for these types of loans.

The proposal also identifies certain "best practices" that FCUs should incorporate into their individual STS loan programs.

Comments are due by July 6, 2010 and are due to CUNA by June 25, 2010 .

Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com and to Senior Assistant General Counsel Jeff Bloch at jbloch@cuna.com; or mail them to Mary and Jeff in c/o CUNA's Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, 6th Floor, Washington, DC 20004. You may also contact us if you would like a copy of the proposal or you may access it on the Internet here.

> View the full comment call at cuna.org here