'Payday' Loans Bill Advances in Pennsylvania Senate

June 10, 2013
Pittsburgh Post-Gazette 
payday lending news

A Pennsylvania Senate Banking Committee has cleared a bill that would legalize payday loans, which currently are not allowed in the state due to regulations that cap annual percentage rates of interest at 30 percent. The bill -- which is opposed by consumer groups -- will not go up for a full Senate vote unless it clears the appropriations committee. There is no companion legislation under consideration in the House. Under the Senate bill, consumers could obtain no more than eight consecutive successful two-week loans, rollover loans would be prohibited, and indebtedness would be limited to $1,000 or 25 percent of gross month income. Diane Standaert, an attorney at the Center for Responsible Lending, says no state has legalized payday lending since 2005. "Pennsylvania has one of the strongest laws in the country on this issue," she says. "It's been effectively enforcing its laws against these types of predatory lending practices."
Web Link







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`