ALEXANDRIA, Va. — Federal credit union alternatives to payday loans could range from $200 to $1,000, have a maximum APR of 1,000 basis points above the interest rate ceiling and carry an application fee of no more than $20.
Those are among the provisions of the proposed rules that the NCUA Board voted unanimously last Thursday to approve for a 60-day comment period.
Under the current interest rate ceiling, the maximum APR would be 28%. The loans could be for a minimum of one month and a maximum of six months, and any member couldn't have more than one such loan from any one credit union at the same time.
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