Payday Alternative Loans

In addition to the small-dollar loan program, credit unions may also use PALs I and II to provide funds to borrowers. NCUA regulations §§  701.21(c)(7)(iii), Payday alternative loans (PALs I), and 701.21(c)(7)(iv), Payday alternative loans (PALs II), detail the requirements for PALs programs. The NCUA made no changes to the PALs regulations in response to COVID-19.

Examiners may refer to the regulations above for specific details regarding PALs.

Last updated on June 30, 2020