Last week, Pennsylvania lawmakers set out to make the online payday lending playing field on par with their brick and mortar counterparts. In a continuing trend, many state legislators are seeking to bring some regulation to the payday lending industry. The Morning Call reports:
''This is a major victory for Pennsylvania consumers,'' Kerry Smith, a lawyer with Community Legal Services in Philadelphia, said following the announcement Monday.
Until last week, Pennsylvania applied its Consumer Discount Company Act only to lenders that had a storefront in Pennsylvania. Under a new interpretation, the act now will apply to anyone making consumer loans.
The act limits the interest and fees a non-bank company can charge for small loans. That's trouble for payday lenders, whose short-term loans, if applied over a year, would far exceed the act's interest-rate caps.
The issue is a bit moot in that payday lenders can set up offshore and avoid regulation altogether. Much like online casinos. Whether that will occur or not is to be seen in the future.
Also read the Supreme Court's decision on the Advance America lawsuit.
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1 comment:
I think the Payday Loans system is great! Theres not a single person who doesn't have emergancy's and payday loans really help out.
There quick and easy and really do help
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