New regs on payday lending alternatives: Help your members weather the pandemic

The federal banking regulators, including the NCUA, recently encouraged credit unions and other financial institutions to offer responsible, small-dollar loans to consumers and small businesses feeling the impact of COVID-19.

The effects have been far reaching, from the direct health issues of those infected to those who have lost wages or whose jobs have disappeared from the shutdown of nonessential businesses across most of the United States. Some members have solid relationships with their credit unions, but do not qualify for short-term credit essential to help them through the immediate crisis caused by the pandemic.

“Many credit union members directly affected by the business shutdowns need their institutions to stand strong with them. Providing convenient and efficient short-term assistance is one direction to go in meeting members’ extraordinary needs,” said Randy Salser, president of NAFCU Services.

 

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