Understanding Payday Loans – A Look at Woxall Pennsylvania’s Laws on the Matter
When it comes to obtaining a quick and simple loan to help you cover expenses, payday loans are often one of the first options you might consider. However, it’s important to note that payday loans are illegal in Pennsylvania. In fact, Pennsylvania has some of the toughest laws in the United States when it comes to payday loans, with the state’s Attorney General’s Office stating outright that “Pennsylvania’s anti-payday lending laws are among the strongest in the nation.”
What are Payday Loans?
Payday loans are short-term loans that usually have to be paid back in two weeks or less, often with high fees and interest rates. They’re generally used by people who are unable to obtain credit elsewhere, as payday lenders typically do not require a credit check.
In Pennsylvania, however, payday lending has been illegal since 2010, when the state’s Check Casher Licensing Act expired and was not renewed. Under the act, lenders were required to obtain licenses and payday loans were capped at a maximum of $1,000 with interest and fees not exceeding more than $24.50 for every $100 borrowed. Despite regulations, payday lenders found ways to conduct business in the state – until it was determined that such loans were in fact illegal and the practice was banned in 2018.
The Consequences of Infringing the Law
If you reside in Pennsylvania and are considering obtaining a payday loan, it’s important to know that the state has strict rules against the practice and violations could result in more than just fines for lenders. Those who violate these laws, including unlicensed lenders who attempt to operate in the state, can be subject to criminal prosecution. Moreover, lenders are required to provide refunds for any fees collected, while the state maintains the right to impose additional penalties for those who break the law.
What Are Your Alternatives?
If you’re in need of quick cash due to an emergency expense, there may still be options available to you. Consider one of the following alternatives:
- Personal loans: These loans often have lower interest rates than payday loans and can be provided by banks and credit unions
- Credit card advances: If you have a credit card, you may be able to obtain a cash advance at an ATM or bank just like a regular debit card
- Government assistance: Depending on your financial situation, government programs like food assistance or rent assistance may be available to you
Interesting facts or statistics
According to the Pennsylvania Department of Banking and Securities, the payday lending industry in Pennsylvania dropped by 97 percent between 2012 and 2018. In 2017, the state reported only five licensed payday lenders, and in 2018, there were none. This crackdown is a clear indication that Pennsylvania state government is serious about preventing payday lending.
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While payday loans might not be available in Pennsylvania, TheGuaranteedLoans is dedicated to helping you find financial solutions that work for your specific needs. We are not a direct lender, but rather a connector service that can help you connect with potential lenders. Fill out an online application today to get started on finding a viable solution to your financial needs.