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 Posted: Fri Sep 07, 2007 5:55 am |
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Can someone explain the laws regarding payday loans for the state of Pennsylvania
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jps559
Joined: 07 Sep 2007
Posts: 14
Debtcc Points: 453
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| Posted: Fri Sep 07, 2007 6:07 am |
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| Quote: | Legal Status: Prohibited
Citation:
Check cashers are specifically prohibited from making payday loans under Check Cashing Licensing Act of 1998, § 505(a). Otherwise, consumer discount company act applies. 7 Pa. Cons. Stat. Ann. § 6201 et seq.
Small Loan Rate Cap
$9.50 per $100 per year discount or 24% per year
Where to Complain, Get Information:
Regulator: Pennsylvania Department of Banking
Address: Market Square Plaza, 17 N. Second Street Harrisburg PA 17101
Phone: (717) 214-8343
Fax: (717) 787-8773
Regulatory Contact: Jim Keiser Administrator of Non-Depository Institutions
Regulator’s Website
http://www.banking.state.pa.us/banking/site/default.asp |
I have no idea what any of that means.  It says that they are prohibited. But then it goes on to say something about check cashing licensing act of 1998" Don't worry someone will be along shortly that has more knowledge than I do  . The person to ask is Goudah she is more knowledgable then I am. Hang tight someone will be along shortly to assist you.
ladybug
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ladybug
Joined: 29 May 2007
Posts: 2640
Debtcc Points: 24342
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| Posted: Fri Sep 07, 2007 6:12 am |
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DO you have PDLs and if so who are they through? If you are thinking about getting one, please don't.
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pybasj
Joined: 08 Aug 2007
Posts: 826
Debtcc Points: 5505
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| Posted: Fri Sep 07, 2007 6:13 am |
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Ladybug I read that as saying that is the act that made them prohibited.
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pybasj
Joined: 08 Aug 2007
Posts: 826
Debtcc Points: 5505
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| Posted: Fri Sep 07, 2007 6:28 am |
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That is what I thought too but then it says something about the checking cashing licensing act of 1998. wth does that mean?  I think I am going to do a little more investigative work on this one.
ladybug
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ladybug
Joined: 29 May 2007
Posts: 2640
Debtcc Points: 24342
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| Posted: Fri Sep 07, 2007 7:03 am |
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PA has a loophole regarding internet loans.
The act made having any physical location in PA illegal, but when the wrote out the laws they used the term "In this Commonwealth". So they interpret the laws to mean only applying to businesses located inside PA.
Here is some information from the guy in charge of regulating pdl's in PA:
| Quote: | Emails to and from PA Banking Dept
Hello,
I have a question about payday loans in Pennsylvania. Does the small loan rate cap of $9.50 per $100 per year discount or 24% per year apply to these loans? I took out a few on the internet and am trying to figure out how much I legally need to pay. For instance on a $200 loan would I be legally responsible for paying back only $248?
Thanks!
Reply
Dear Ms.:
The 9.5 discount and the 24 % simple interest refer to calculations that can be used by companies that are operating in Pennsylvania and are licensed under Pennsylvania’s Consumer Discount Company Act. With a number of exceptions, a lender that is located inside of Pennsylvania and who does not have any special lending authority (i.e., a special license or charter) who is making smaller loans not secured by real estate can only charge interest at a rate of 6% simple.
A lender that does not have a physical presence in Pennsylvania but who has lending authority from some other state can generally charge the interest rate and finance charges allowed by that other state.
The Department may or may not be reviewing this policy and I would not count on this e-mail as an interpretive opinion before starting any lending or business operations.
James Keiser | Administrator Non-Depository Institutions
17 North Second Street, 13th Floor | Hbg PA 17101
Phone: 717.783.8242 | Fax: 717.787.8773
jkeiser(at)state.pa.us | www.banking.state.pa.us |
What this means is that as long as the company is licensed in another state they are legal to lend in PA. And they would follow the laws of the state they are licensed in.
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goudah2424
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Joined: 31 Oct 2006
Posts: 7974
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| Posted: Fri Sep 07, 2007 3:11 pm |
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Thanks Goudah for clarifying.
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pybasj
Joined: 08 Aug 2007
Posts: 826
Debtcc Points: 5505
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| Posted: Mon Sep 10, 2007 7:31 am |
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I assumed that meant as far as physical locations in the state of PA that they can have check cashing places but they could not extend an actual loan advance on your paycheck. Does it also mean that?
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Billysgirrrl
Joined: 12 May 2007
Posts: 127
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| Posted: Mon Sep 10, 2007 7:34 am |
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Yes, physcial locations for any payday lenders are prohibited in PA. No business is PA can legally do payday loans.
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goudah2424
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| Posted: Mon Sep 10, 2007 7:45 am |
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Oh, ok. I just wanted to be sure of my information. If I'm going to be giving out advice I want to make sure it's right. Thanks a lot. You have helped me quite a bit on here.
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Billysgirrrl
Joined: 12 May 2007
Posts: 127
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| Posted: Mon Sep 10, 2007 7:46 am |
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No problem - Most people that have payday loans and are in PA have all internet loans. They are legal as long as the company is licensed in another state, and they should be following the laws of the state in which they are licensed.
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goudah2424
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| Posted: Mon Sep 10, 2007 11:34 am |
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Some help please. Are these companies licensed/legal anywhere? United cash loans, payday one, and magnum cash? Trying to help someone else.
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pybasj
Joined: 08 Aug 2007
Posts: 826
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| Posted: Mon Sep 10, 2007 12:18 pm |
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Payday One is licensed in all the states it lends in - BUT - It is related to Payday OK and Payday Select. So even though the company is licensed and lending legally you could try for a PIF.
The other two companies are not licensed anywhere that I know of.
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goudah2424
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| Posted: Mon Sep 10, 2007 12:20 pm |
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Isn't payday Select licensed in at least one state?
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pybasj
Joined: 08 Aug 2007
Posts: 826
Debtcc Points: 5505
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| Posted: Mon Sep 10, 2007 12:21 pm |
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I beleive it is licensed in DE . . .
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goudah2424
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