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Information on Payday Loan Regulations - The Bills.com Blog
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Information on Payday Loan Regulations
Thursday, Sep 20, 2007
Question: Are there regulations in Pennsylvania regarding on-line payday loans and their repayment?
Answer: Technically speaking, payday loans are illegal in Pennsylvania. However, payday loan providers have found an interesting loophole allowing them to extend usurious payday loans to consumers in Pennsylvania. Basically, if you walk into a payday loan store and request a loan, it is not that store, or the company that owns the store lending you money. Rather, many of these companies had been establishing relationships with out of state banks where payday loans are legal to lend the money to residents of Pennsylvania. Federal courts have ruled that nationally chartered banks can charge the highest interest rate it can charge in any state in which it does business to all of its customers, regardless of the state laws where the consumer resides.This is the same way that credit card companies have circumvented state usury laws to charge the ridiculously high interest rates they charge on credit cards. While the interest rates on credit cards can
often exceed 30% per annum, payday loans take usury to the next level, frequently charging over 400% per annum interest.
If the loan is illegal, the contract could be void as a matter of law, meaning you would not be required to the fees illegally charged in the payday loan agreement. I encourage you to contact the Pennsylvania Attorney General's office to determine is the Attorney General's office can assist you in investigating the legality of your loan. You can contact the Pennsylvania Attorney General's Consumer Protection division by visiting Attorneygeneral.gov
You may also want to consult with a consumer rights
If the loan is illegal, the contract could be void as a matter of law, meaning you would not be required to the fees illegally charged in the payday loan agreement. I encourage you to contact the Pennsylvania Attorney General's office to determine is the Attorney General's office can assist you in investigating the legality of your loan. You can contact the Pennsylvania Attorney General's Consumer Protection division by visiting Attorneygeneral.gov
You may also want to consult with a consumer rights
attorney in your state to discuss the legality of this loan. If your attorney believes that the loan is illegal, he may encourage you to file a lawsuit against the lender in an attempt to have the contract voided by your state courts. The National Association of Consumer Advocates, at www.naca.net can help you find a consumer rights attorney practicing in your area who specializes in predatory lending practices and contract law.
To read more about payday loans, I encourage you to visit the Bills.com Payday Loans Information page
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
To read more about payday loans, I encourage you to visit the Bills.com Payday Loans Information page
I hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
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