Good news for Pennsylvania
Date: Mon, 07/20/2009 - 14:09
Pa. Wins Lawsuit Filed by Payday Lender posted 7/13/09
Harrisburg, Pa. - A Commonwealth Court ruling says Internet payday lenders and other out-of-state companies that make loans to Pennsylvania residents must be licensed by the state Department of Banking and comply with state laws, according to a department news release.
Friday's ruling came as the result of a lawsuit filed by Cash America Net of Nevada, LLC, an Internet payday lender, challenging the department's new position that the state's Consumer Discount Company Act would apply to any company making loans to Pennsylvania consumers. ABC 27 Talkback:
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The law, which limits the interest and fees a non-bank company can charge for non-mortgage loans, had previously been interpreted as applying only to companies with an office or employees physically located in the state.
Payday loans are small, short-term loans that are typically repaid in a week or two; usually on the borrower's next payday. Payday lenders charge a fee typically from $15 to $30 per $100 borrowed, which can equal 300 to more than 1,000 percent interest.
Harrisburg, Pa. - A Commonwealth Court ruling says Internet payday lenders and other out-of-state companies that make loans to Pennsylvania residents must be licensed by the state Department of Banking and comply with state laws, according to a department news release.
Friday's ruling came as the result of a lawsuit filed by Cash America Net of Nevada, LLC, an Internet payday lender, challenging the department's new position that the state's Consumer Discount Company Act would apply to any company making loans to Pennsylvania consumers. ABC 27 Talkback:
Click Here to Comment on this Story
The law, which limits the interest and fees a non-bank company can charge for non-mortgage loans, had previously been interpreted as applying only to companies with an office or employees physically located in the state.
Payday loans are small, short-term loans that are typically repaid in a week or two; usually on the borrower's next payday. Payday lenders charge a fee typically from $15 to $30 per $100 borrowed, which can equal 300 to more than 1,000 percent interest.