NCUA calls for 18% cap
The Center for Responsible Lending applauds the National Credit Union Administration (NCUA) for issuing guidance Wednesday to federal credit unions about payday loans, warning them of reputational and other risks connected with this activity. NCUA notes that fees including participation fees and minimum monthly charges should be counted towards the 18% APR cap. NCUA notes "…borrowers find themselves in cycles where their loans roll over repeatedly, incurring high fees…NCUA believes this dependence often reflects or exacerbates other financial difficulties payday loan borrowers are experiencing