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 Posted: Fri Oct 27, 2006 8:33 am Subject: PA Laws |
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Does anyone know the laws for payday loans in Pennsylvania? I have 5 total. Thanks a bunch.
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joyc1966
Joined: 27 Oct 2006
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TASHA_MOSELEY
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| Posted: Fri Oct 27, 2006 8:59 am Subject: |
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Welcome to the Community  Are these store front or internet loans? Alot of the internet loan companies are not licensed to do business in many states. If you deal with store front, try to work out something with them. They are the ones who can, and often will, go the legal route. Good Luck...Karen
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Bossy4455
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| Posted: Fri Oct 27, 2006 9:38 pm Subject: |
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Storefront payday loans are illegal in PA, although Advance America is experimenting with an "alternate product" (which has resulted in a lawsuit by the PA Department of Banking) and a few other chains are brokering bank-model installment loans.
As far as the internet goes, the issue in PA comes down to whether they are licensed in the state where they are operating from or not. In five different interpretive letters over the past seven years, the PA Department of Banking has interpreted the Consumer Discount Company Act (which regulates near all unsecured loans under $25,000) to apply only to businesses within PA borders. This is in sharp contrast to states like Kansas and Colorado which have passed laws stating that any loan made to their residents from anywhere is subject to their laws. (Whether those states' laws are constitutional or not remains to be seen. A pending lawsuit in the federal district court in Kansas may start to answer that question some time next year, though.)
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MarciaBradysLovechile
Joined: 08 Oct 2006
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Location: Langhorne, PA Debtcc Points: 1259
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