Payday Loans

Pennsylvania payday loan laws

As per Pennsylvania payday loan laws, payday lending is strictly prohibited in this state. Consumer discount company act applies, as per which lenders cannot charge more than 24% per annum of interest on any type of loan. Check cashing agencies have specifically been prohibited from issuing cash advances on the basis of a post-dated check.

The Laws Are Applicable To Internet Payday Lenders Also

Many payday loan companies that operate their business from Internet claim that the laws applicable in the state of Pennsylvania do not apply to them because they do have their offices located in this state. This is just not true. It is very important for you to keep in mind that even internet payday lenders are required to abide by the Pennsylvania payday loan laws if they have to issue cash advances to those consumers who are residing in this state. They cannot charge more than 24% of APR (annual percentage rate) on short-term cash advances. If they are charging more, you can take legal actions against them by filing a complaint with the Pennsylvania Department of Banking, which is the regulatory authority in this state regarding payday lending. In an attempt to tighten the legal grip over unscrupulous lenders, the state laws have now made it mandatory for all lenders including the ones that run their business from Internet to first obtain a proper license from the state department of banking. If you are considering borrowing a cash advance from a lender, you must first make sure that they are duly licensed with the state department.

How To Complain?

If you find that your lenders are not abiding by the Pennsylvania payday loan laws, you can file your complaint either via fax at (717) 787-8773 or through a phone call to the Pennsylvania Department of Banking at (717) 214-8343. Alternatively, you can also write them a letter or make a personal visit to their office at Market Square Plaza, 17 N. Second Street Harrisburg PA 17101.

Consumer Discount Company Act

The Consumer Discount Company Act of Pennsylvania applies to all those lenders (irrespective of where their offices are located) who are issuing loans to the residents of this state.

Lawsuit Against The Largest Payday Lender Of The USA

The state of Pennsylvania has recently filed a lawsuit against Advance America, which is the largest payday loan company in the United States of America. The charges against this company include not duly licensed with the state department, charging up to $150 in interest and other fees on $500 of cash advances, and other such things. The state of Pennsylvania is now seeking restitution for those borrowers who were affected because of the unfair activities of Advance America.

Overall, though the Pennsylvania payday loan laws are very strict, if you want to make sure that your rights and interests remain well protected, you must be well aware of those laws and you must file your complaints immediately as soon as you find that your lender is engaged in illegal activities and is harassing you and/or other consumers.

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One Response to “Pennsylvania payday loan laws”

  1. Martin says:

    Pennsylvania has completely banned the pay day lending system in the state. Creditors can not charge interest more than specified limit on any type of loan. If you are dialing with any lending agency or creditors which are present on Internet they have to follow the guide lines of Pennsylvania. The internet lending companies have to follow the rules of state of Pennsylvania if the borrower is residing in the state. The lenders should get the license from the state authorities to do the business in pay day lending programs. It can also make the big difference in the area of discipline. If you want to file a complaint about your lenders you can do this through a phone call or by sending them a letter. The state of Pennsylvania is very strict about the proper licensing system of lending company. The state has filed a case against the largest pay day lending company of USA. The state has the consumer discount company act which is applicable to all the lenders who are dealing with the people of this state. It does not make any difference whether the lenders belongs from the state of Pennsylvania or not. The laws are very good in the state of Pennsylvania but you can get the full advantage of such rules only if you are very well aware of these rules.

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