payday loans in PA
Date: Wed, 07/19/2006 - 16:45
Here is the link to the applicable laws of PA. http://www.pac
Here is the link to the applicable laws of PA.
http://www.pacode.com/secure/data/010/chapter41/chap41toc.html
There is a template letter on my blog for your use. Just insert your state laws.
Your state will be behind you on this.
thanks POLLYANDSAY...I hope I can get myself out of this mess, i
thanks POLLYANDSAY...I hope I can get myself out of this mess, it is so depressing, my whole time is thinking about this situation I have put myself in, hopefully BCC willcontact me soon. thanks!!
polly are PDL's actually allowed in PA??? I am trying to sort th
polly are PDL's actually allowed in PA??? I am trying to sort this all out on my own, this is somewhat confusing!!!
From what I have been able to interpret, I would say no. PA law
From what I have been able to interpret, I would say no. PA law is very difficult to read though. I would call your AG's office for their position.
In June 2005, the Pennsylvania Department of Banking issued an i
In June 2005, the Pennsylvania Department of Banking issued an interpretive letter that stated that as long as the lender is outside of Pennsylvania, licensed in their home state, and in compliance with their home state's laws, the lender does not need to be licensed under the Consumer Discount Company Act or otherwise regulated by Pennsylvania. Similar letters were issued back in 1999 and 2000.
Not that Secretary Schenck was happy about it. But he's constrained by a law written in 1915. In fact, this summer he tried to get the legislature to amend the law to give him more authority but the bill he tried to piggy-back onto had nothing to do with payday loans and the Senate Banking Committee didn't consider his amendment.
FYI - Advance America is offering a payday loan-like line of credit in some of its PA storefronts. So far the Department says they don't like it but can't do anything about it under current law.
How is Advance America doing that? Are they not using checks? T
How is Advance America doing that? Are they not using checks? The check cashing licensing act of 1998 prohibits check cashers from making payday loans.
Do you have a link to that 2005 decision?
I found it! http://www.banking.state.pa.us/banking/lib/bank
I found it!
http://www.banking.state.pa.us/banking/lib/banking/laws_and_regulations/062405.pdf
Thank you. That is interesting.
Apee, are your lenders internet leners? You need to see if the indeed ARE following the laws of their home states, before you proceed.
You can thank Marcia Brady's Love Child for this info!
This is what Advance America's site says: Quote:Pennsylvania:
This is what Advance America's site says:
Quote:
Pennsylvania: Loans by NCAS of Delaware, LLC d/b/a Advance America, Cash Advance Centers (a Delaware Licensed Lender). Certain limitations apply. Subject to credit approval and gross monthly income of $1,000 or more. Credit limit, if approved, will be $500. Checks may be issued in lieu of cash. We charge the following fees and Finance Charges: $149.95 monthly participation fee regardless of whether you borrow or owe any money: 0.016394% daily periodic rate (5.98% corresponding ANNUAL PERCENTAGE RATE); and $20 fee for any dishonored check. There is no grace period during which you can avoid Finance Charges. |
I wonder how Advance America found this big of a loophole in the
I wonder how Advance America found this big of a loophole in the law.... Crazy. I am going to find out.
Polly...all my lenders are internet lenders, please inform me if
Polly...all my lenders are internet lenders, please inform me if you find out other information, not that wasn't confused before this...lol...now I am totally confused....
Polly they are Interm,usfast,united,northway ,arrowhead..thanks
Polly they are Interm,usfast,united,northway ,arrowhead..thanks
While this doesn't necessarily help Apee1 with her internet loan
While this doesn't necessarily help Apee1 with her internet loans, I'd like to answer Polly's question about how Advance America is doing it . . .
First, Advance America does take a check, but it isn't technically cashing of a post-dated check, since the check is only a security. AA expects you to walk the cash in on your due date.
(BTW - You are correct about the Check Casher Licensing Act. After the effective date, direct lending of payday loans was illegal. But Pennsylvania was a huge bank-model state from 1998 to March 2006, when the banks finally pulled out under FDIC pressure.)
Second, the A.P.R. on their credit line is 5.98% because, according to their spokespeople, the monthly "participation fee" isn't considered interest. (To be honest, I can't find a hard-and-fast definition of interest in the PA Code or the case law.) Pennsylvania doesn't have a license for unsecured loans made for less than 6% per year.
Because the law is so vague about what constitutes interest, the Department of Banking can't get their hands around this product yet. And it being an election year (for both governor and the legislature), I would expect a lot of talk and very little action as far as amending the law for the foreseeable future.
Pennsylvania isn't going to offer much help on the internet loan
Pennsylvania isn't going to offer much help on the internet loans. The AG will sympathize. If collectors abuse you, they'll even send out a form letter or two. But Pennsylvania's law on unsecured loans of $25,000 or less predates the internet by about 80 years. It only gives authority to the Banking Department to regulate lenders with physical operations in PA.
Note: This is different than the whole choice-of-law concept that a lot of internet lenders use. In that scenario, you could go back and forth for years without ever resolving whether the lender's state or the borrower's state controls the loan. Pennsylvania itself has conceded that it has no power to regulate unsecured loans made by lenders that are licensed and operating outside of PA.
I don't know if the moderator will let the link stay in or not, but just in case:
http://www.banking.state.pa.us/banking/cwp/view.asp?a=1352&q=547781&bankingNav=|32148|32179|
Otherwise go to the Secretary of Banking's website and read the interpretive letters (under the "laws & regulation") regarding the Consumer Discount Company Act. In June 2005, and on several prior occasions, the Department has made the point that its power stops at the border. Only if the out-of-state lender is unlicensed in its home state, i.e., operating without any regulation, can the Department take action.