Payday Loans in Lemont, Pennsylvania: Know the Law
Payday loans are short-term loans typically taken out to cover emergency expenses until the next payday. They can be quick and easy to obtain, but they come with high fees and can lead to a cycle of debt for borrowers. However, in Lemont, Pennsylvania, payday loans are prohibited.
What are Payday Loans?
Payday loans are small-dollar loans typically ranging from $100 to $1,500. They are designed to help borrowers cover emergency expenses until the next payday when the loan is due for repayment. The borrower must provide proof of income and a post-dated check or electronic access to their bank account to receive the loan. Upon the next payday, the borrower must repay the loan along with high fees and interest rates, usually within two weeks to a month.
Due to their high fees and interest rates, payday loans can be difficult to pay back for many borrowers, leading to a cycle of debt. For this reason, many states have enacted laws to regulate or prohibit payday loans altogether.
Payday Loans are Prohibited in Lemont, Pennsylvania
In Pennsylvania, the law prohibits payday loans under the Check Casher Licensing Act of 1998 (Act 1998-199), establishing that payday loans and other short-term loans with annual percentage rates greater than 6% and loan amounts under $25,000 are illegal.
Since payday loans are illegal in Lemont, Pennsylvania, borrowers should consider other options to cover their emergency expenses. Some alternatives to payday loans include:
- Personal loans from a bank or credit union
- Credit card cash advances
- Flexible payment plans or extensions from creditors
- Government or non-profit assistance programs
Interesting Facts about Payday Loans in Pennsylvania
- The average payday loan borrower in Pennsylvania takes out eight loans per year and pays an average APR of 339%
- Pennsylvania is one of 17 states and the District of Columbia that prohibit payday lending outright
- In Pennsylvania, 65% of payday loan customers borrow to cover recurring expenses, such as housing and utilities
Apply Now for Other Loan Options
If you live in Lemont, Pennsylvania, and need a loan to cover emergency expenses, payday loans are not an option. However, there are other loan options available, and TheGuaranteedLoans can help connect you with potential lenders.
We are a connector service, not a direct lender. Our website makes it easy for you to apply for a loan from the comfort of your own home. Simply fill out our online application, and we will match you with potential lenders who may be able to provide you with the loan you need.
Don’t let emergency expenses catch you off guard. Apply for a loan today and get the financial help you need from TheGuaranteedLoans.