NCUA’s latest Letter to Credit Unions (24-FCU-02) provides details on the agency extending the temporary 18% federal credit union interest rate ceiling through March 10, 2026.
The board voted on the latest extension at its July board meeting. NCUA boards have kept the 18% cap in place since May 1987.
America’s Credit Unions has called on the board to adopt a floating interest rate ceiling to allow federal credit unions to “more fairly and fully serve their communities” through economic cycles.
NCUA Chairman Todd Harper also noted in the letter the extension “preserves your federal credit union’s ability to offer a higher rate payday alternative loan.”