News - Poor Credit Payday Loans
Payday loan practices will extend to out-of-state companies
Aug 27, 2008
Any company that makes payday loans or other consumer loan transactions with customers in Pennsylvania, but has a physical address outside Pennsylvania, will be subject to state lending rules by early next year, the Department of Banking said today.
Payday loans also go by the name paycheck advances and other terms, and are loans that give people money to cover expenses until their next paycheck arrive.
The Internet makes marketing payday loans and similar transactions possible from anywhere, including where rules are not as strict, prompting the enforcement change, the department said.
Previously, the department only considered state limits on interest rates and other fees as applying to companies with physical addresses within Pennsylvania.
As of Feb. 1, 2009, the state's Consumer Discount Company Act will apply to all companies doing business with Pennsylvania customers. The act applies to non-bank businesses that offer non-mortgage loans of less than $25,000, the department said.
The companies will also have to register with the state.
If a company outside of Pennsylvania does business with a customer in Pennsylvania after Feb. 1 and does not register, the company will face a fine and other penalties.
Source : http://ydr.inyork.com/ci_10023164
|
