On Sept. 19, 2019, the National Credit Union Administration (NCUA) issued a final rule providing credit unions with more payday alternative loan options. The 49-page final rule, known as PALs II, is not replacing the existing payday alternative loan option first made available in 2010. Instead, the new rule:

  • Permits federal credit unions to offer PALs II loans up to $2,000;
  • Requires PALs II loans to have terms of one month to 12 months;
  • Allows a federal credit union to make a PALs II loan immediately after the borrower becomes a member; and
  • Restricts a federal credit union to offering only one type of PALs loan to a member at any given time.

The final rule is effective 60 days after it is published in the Federal Register.


John Zasada, JD, CAMS – Compliance Consulting Director, Financial Institutions Group. John can be reached at zasada@doeren.com.