Pa. is regulating online payday lenders
The Pennsylvania Department of Banking said Internet payday lenders and other out-of-state lenders to Pennsylvania consumers have until Feb. 1 to get a license under the Consumer Discount Company Act.
The Pennsylvania Department of Banking said Internet payday lenders and other out-of-state lenders to Pennsylvania consumers have until Feb. 1 to get a license under the Consumer Discount Company Act.
The act limits the interest and fees that a non-bank lender can charge on loans under $25,000, excluding mortgages. The license is the same as the one companies with stores in the state need to get.
"This new approach addresses the rising prevalence of Internet-based lending activity, especially Internet payday lending, which has left Pennsylvania consumers vulnerable to practices that our laws were intended to prohibit," Secretary of Banking Steve Kaplan said in a news release.
The department does not know how much is being lent in the state over the Internet, spokesman Dan Egan said.
























