Letter from Pennsylvania Department of Banking
Date: Tue, 08/28/2007 - 10:02
I wanted to share a letter I received from Pennsylvania Department of Banking ("Department"), regarding payday loans.
Thank you for contacting the Pennsylvania Department of Banking ("Department"), regarding payday loans you received on the Internet.
For the most part payday loans are not legal in Pennsylvania; however, entities that offer payday loans in Pennsylvania entered into partnership agreements to make and service loans on behalf of out-of-state banks/lenders and, thus, circumvent Pennsylvania’s lending laws.
Does it resolve the problems that you are having with your prese
Does it resolve the problems that you are having with your present pdl companies? It seems to be a generic letter. There are still so many companies doing illegal business in PA and no actions seem to have taken till now.
It doesn't say anything about internet lenders not backed by ban
It doesn't say anything about internet lenders not backed by banks. It really doesn't seem to answer anything . . . . On the PA dept of Banking website it states that internet based lenders that have no physical presence in PA can lend to PA consumers as long as they are licensed in another state and following the laws of the state that they are licensed in.
I know! I've been trying to get concrete answers for months. T
I know! I've been trying to get concrete answers for months. The Banking Dept says one thing, and the AG's office says a totally different thing. What the banking dept says is posted on their website, and I would think that would make any attempts at lawsuits by the AG's office impossible.
If the AG's office were to sue a company for not being licensed by PA and not following PA's laws, all the company has to do is say the banking dept said I didn't need to be licensed, and to follow the lending laws of my state. It says it right here on the state's website.
Plus, if you contact the banking dept pretending to be a payday lender, they will flat out tell you that they don't license pdl's, that you only need to be licensed by another state, and that you need to follow the laws of the state under which you are licensed.
whole lotta nuttin' in that letter, if you ask me.
whole lotta nuttin' in that letter, if you ask me.
