The remaining for the commenters that responded to the concern opposed prohibiting an FCU from charging you overdraft charges pertaining to PALs loans.

The remaining for the commenters that responded to the concern opposed prohibiting an FCU from charging you overdraft charges pertaining to PALs loans.

The Board asked whether the NCUA should prohibit overdraft or NSF fees charged Start Printed Page 51949 in connection with any PALs loan payments in the PALs II NPRM. 1 / 2 of the commenters that responded to the question answered into the affirmative, arguing that the FCU can use overdraft charges in a predatory way to draw out extra income from a PALs loan debtor. These commenters additionally felt that allowing overdraft charges pertaining to a PALs loan is contrary to supplying borrowers by having a pathway that is meaningful conventional lending options and services because extra costs might have a devastating affect the debtor’s monetary health and keep the debtor caught in a “cycle of debt.”

These commenters argued that the choice to extend an overdraft loan and fee overdraft costs must be company choices for every specific FCU and therefore the Board must not treat overdraft or NSF fees charged in connection by having a PALs loan re re payment any differently off their scenario whenever a debtor overdraws a free account which will make a loan re payment. Continue reading “The remaining for the commenters that responded to the concern opposed prohibiting an FCU from charging you overdraft charges pertaining to PALs loans.”