Tuesday, July 29, 2008

Pennsylvania to Require Licensing of Payday Lenders

There are federal laws regarding payday lenders and the interest they can charge. But it isn't just interest you have to be aware of, there are fees involved, expecially when loans are extended beyond the first payment due date.

Pennsylvania has decided to deal with the growth of payday lenders by passing a licensing requirement for lenders operating in that state. Pennsylvania lawmakers felt that online lenders could circumvent the laws of the state and that this is a way to make sure that laws intended to protect consumers were complied with.

The law will require lenders to obtain a license from the Department of Banking by February 1, 2009 or face potential fines and penalties.

The PA Department of Banking interprets the state's Consumer Discount Company Act to apply to any company that lends to Pennsylvania consumers and not just those companies with a physical address in the state.


money said...
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Janus Torrell said...

Glad someone is making them have to answer to someone.

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