NCUA issues information on short-term loans.
In September, the NCUA board unanimously approved new regulations on payday loan alternatives. Federal credit unions will be allowed to charge up to 28% for certain short-term loans. The loans can be between $200 and $1,000 and can have terms of between one and six months. The application fee can be no more than $20, and the borrower must have been a member of the credit union for at least 30 days.
The alert said it allowed a higher rate because it believes that CUs would not be able to cost-effectively operate a short-term small loan program with the 18% rate ceiling.
READ the alert, go to: www.ncua.gov/news/express/xfiles
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|Title Annotation:||News to Know|
|Publication:||Credit Union Times|
|Date:||Oct 27, 2010|
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