Pennsylvania payday loan laws

In Pennsylvania, there is no limit on the amount of loan taken by the borrower. The maximum fees that can be charged on every $100 is $9.50 that will be calculated on the discounted interest. There is also an additional service charge of $1.50 per $50 not to exceed $150. You can roll over the principal amount as per your situation and you can have multiple outstanding loans at one period of time. In the state of Pennsylvania, the state does not offer any borrower protection. You will have to pay the full amount at the end of the period.

You can get a copy of the laws from the attorney general's office in your state. Or you can visit their website at http://www.attorneygeneral.gov/

Does anyone know if the PA laws have changed since this 2006 posting? I found an article saying they were cracking down on internet PDL companies lending in PA with new laws in summer of 2008, but I could not find details. Any assistance would be greatly appreciated. Thanks!

There were no "new laws". The PA Department of Banking issued a new interpretation of the old law that was supposed to go into effect on 2/1/09. CashNetUSA sued on the basis that only the legislature has the power to change the law and the executive branch overstepped it s authority. To make it worse, the Department didn't even go through the administrative process to enact regulations. They just sent out a letter and posted a copy on their website. Now the case is in court, the new policy isn't being enforced and out-of-state lenders can still legally make loans to PA residents under their home-state laws.

I hope the court decides against the pdl's but that will probably get appealed too.

What is Pa laws on payday loans?

That info is good to know. I'm sure just about everyone, on this Forum, has had PDL's at one time or another. The 'nightmare' of getting out of them is horrible. So...our own state (PA, where I live) can't even protect us? Wow!!

So What do we do than? I closed my bank accounts. Should I proceed with notifying the PDL's????

Quote:

You do not have to pay them!!!!!!!!!!!!!!!!!!!! Close your account and walk away.

I have taken a few of those loans an am unable to pay them back. they have done everything from threating my child to calling my mother to contacting my internet provider. they have told me they will take my drivers licen for up to three years. they will charge with felonys. these amount I want to apy back I CAN NOT [PAY THEM BACK THE KIND OF MONEY THEY WANT AT ONE TIME. THE AMOUNT they want is sometimes 400 or 500 dollars. i am on a very tight budget an these people will not be nice. i am aperson who wants to pay my debt just in small amounts since i am not working an living on unemplyment with two kids.

Quote:

[QUOTE=Anonymous;669455]I have taken a few of those loans an am unable to pay them back. they have done everything from threating my child to calling my mother to contacting my internet provider. they have told me they will take my drivers licen for up to three years. they will charge with felonys. these amount I want to apy back I CAN NOT [PAY THEM BACK THE KIND OF MONEY THEY WANT AT ONE TIME. THE AMOUNT they want is sometimes 400 or 500 dollars. i am on a very tight budget an these people will not be nice. i am aperson who wants to pay my debt just in small amounts since i am not working an living on unemplyment with two kids.[/QUOTE]
Start a new topic with the following info and it will help us to help you:
-Names of each pdl company.
-Whether they are store front or Internet.
-How much you borrowed.
-How much you paid so far.
-The state in which you reside.

I've written back on at two other forums on this site. I've done a bit of research into this payday loan thing because I myself have got caught up in the mess that they can cause. I even faxed and emailed a letter to the Department of Banking. I received a call back today and was told that ALL payday loans are illegal in the state of Pennsylvania. The kind gentleman also told me that THERE ARE NO payday loan lenders licensed to do business in this state. Any lender that wants to do business here MUST be licensed in Pennsylvania but they CANNOT offer payday loans. They can offer short-term installment loans and they must abide by Pennsylvania's regulations pertaining to fees and interest. Check the Consumer Discount Company Act. He told me that there is a program that helps people in need of cash when they cannot qualify for a loan called the Better Choice Program which there is information about on the Department of Treasury's website. He also suggested writing a letter to the lenders stating the information regarding the illegality of payday loans in Pennsylvania and making some type of arrangement to pay back the principal if there is a balance. He also told me that anyone who has problems with the collection firms who are tied in with these payday loans should file a complaint with the PA Attorney General's office. He did caution that the lenders may still take you to court and there is a possiblity that the judge may still see the contract as valid but you may still have to pay back the principal. It will depend on the judge. All of these payday lenders charge a so-called refinance fee if you don't pay off the loan with your next paycheck. I plan on telling them that they should apply those payments to the loan and I'll pay off whatever is left in installments. I wish everyone the best of luck.

Any further updates on this post?