WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – is slamming the National Credit Union Association (NCUA) on their vote to expand loan amounts and weaken underwriting requirements for payday alternative loans (PALs) provided by federal credit unions. Board Member Todd Harper voted against the rule.
“NCUA Should make it easier, not harder for hardworking Americans to obtain safe and affordable loans and pay back their loans responsibly,” said Brown. “Today’s vote continues to show that Trump regulators would rather stand with industry instead of working families.”
The NCUA is responsible for ensuring the credit unions serve their communities and members with safe and affordable products and services. Currently, federally insured credit unions can offer payday alternative loans of $1,000 or less that require sound underwriting and cost less than traditional payday loans. NCUA’s new rule, however, drops these important consumer safeguards, resulting in higher cost loans that could trap credit union members in a cycle of debt.