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payday loans in PA

Date: Wed, 07/19/2006 - 16:45

Submitted by anonymous
on Wed, 07/19/2006 - 16:45

Posts: 202330 Credits: [Donate]

Total Replies: 16


Hi all! Like so many others here I am in PDL debt, up to my ears,is closing my checking account a good idea?? these were all online payday loans


to stop ach from pdl's have your bank put a stop range on any dollar amount and that will take care of the debits.

Promotional post edited as per forum rules - Mike


lrhall41

Submitted by on Thu, 07/20/2006 - 20:21

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Thanks traci. I just call them and Im getting ready to send my info over to them and get set up. This is good. I talk to Linda and she is good as well. I cant wait to start with them. THX


lrhall41

Submitted by djeagles on Fri, 07/21/2006 - 10:28

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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.


lrhall41

Submitted by on Sat, 07/22/2006 - 10:21

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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.


lrhall41

Submitted by polly on Sat, 07/22/2006 - 10:45

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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.


lrhall41

Submitted by on Sun, 07/23/2006 - 09:34

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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.


lrhall41

Submitted by on Mon, 07/24/2006 - 07:43

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