Published: August 2018

Payday alternative loans shouldn’t permit cycle of high-cost debt

Coalition: Stop the Debt Trap

In a letter to the National Credit Union Administration, more than 100 coalition advocates oppose changes that would permit credit unions to charge an unlimited number of fees on short-term loans, resembling payday loan debt.

Advocates spoke out against the National Credit Union Administration’s (NCUA) proposed rule to expand the payday alternative loan program. The proposed rule would allow for an unlimited number of high-cost loans, resembling the very payday loan debt traps that payday alternative loans are supposed to help Americans avoid. The NCUA should reconsider this proposal, most importantly by not permitting more than six application fees in one year.

Lead Organization

Center for Responsible Lending

Other Organizations

Allied Progress | Americans for Financial Reform | Center for Financial Social Work | Center for Global Policy Solutions | Center for Responsible Lending | Congregation of Our Lady of the Good Shepherd, US Provinces | Consumer Action | Consumers Union, advocacy division of Consumer Reports Main Street Alliance | NAACP | National Advocacy Center of the Sisters of the Good Shepherd | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low income clients) | National Federation of Community Development Credit Unions | National Rural Social Work Caucus | People Demanding Action | UnidosUS (formerly NCLR) | U.S. PIRG

More Information

To read the coalition letter in full, click here.

For more information, visit Stop The Debt Trap's website.

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