Cards issued have APRs of 29.99%.
Agency letter promises to find out if five credit unions are staying within NCUA interest rate ceiling.
Two long-term opponents of payday lending said that nine federal credit unions in five states continue to offer members payday loans with triple-digit interest rates.
The CEO of a federal credit union criticized for making payday loans has strongly defended her institution, arguing the loans help members escape short-term, high-interest debt.
XtraCash says it and its clients exceed bar set by payday lenders and if forced to meet NCUA standards, the credit unions couldn't do it.
Louisiana FCU charges far less than payday lenders, offering escape not predation, CEO Rhonda Hotard says.
Two of the nine credit unions hit in NCLC letter respond; NCUA says it'll look into the complaint.
Consumer advocates say most credit unions cited in 2010 have abandoned the practice.
The NCUA will likely have much to consider as it reads through more than 280 comment letters that came in on the agency’s proposal to amend the CUSO rule.
The National Consumer Law Center continued its criticism of payday lending CUSOs in a NCUA comment letter on proposed amendments to the CUSO rule.