Disclaimer: Payday loans are Prohibited in Pennsylvania. The information provided in this article is for informational purposes only and does not encourage or promote the use of payday loans in Spraggs, Pennsylvania or any other state where they are prohibited by law.
What are Payday Loans?
Payday loans are short-term, high-interest loans that are typically due on the borrower’s next payday. These loans are often used by people who need quick cash to cover unexpected expenses or bills.
The Prohibition of Payday Loans in Pennsylvania
In Pennsylvania, payday lending is prohibited by state law. The Consumer Discount Company Act, which was passed in 1996, prohibits any lender from making a loan with an effective annual interest rate above 6%. This effectively bans payday lending, as these loans typically carry annual interest rates in excess of 300%.
Alternatives to Payday Loans
If you live in Spraggs, Pennsylvania and are in need of quick cash, there are alternatives to payday loans. One option is to seek assistance from local non-profit organizations or community groups that offer assistance with emergency loans or other financial assistance. Another option is to consider a personal loan from a bank or credit union, which may have more reasonable interest rates and repayment terms.
Interesting Facts and Statistics about Payday Loans in Spraggs, Pennsylvania
- In 2016, Pennsylvania state officials shut down a payday lending operation that was charging interest rates as high as 448%.
- According to the Center for Responsible Lending, payday lending drains an estimated $3.4 billion in fees every year from low-income consumers in the United States.
- In a survey of payday loan borrowers conducted by the Pew Charitable Trusts, 58% of respondents reported that they had trouble meeting their monthly expenses while repaying their payday loans.
Apply Now
If you are looking for quick cash and live in Spraggs, Pennsylvania, explore other legitimate loan options such as personal loans. TheGuaranteedLoans is a connector service that can connect you to a network of potential lenders. Fill out an online application on our website today and our network of lenders will review your application and respond with loan options that meet your needs. Remember, we are not a direct lender and our services are completely free to use.