Payday Loans in Brockton, Pennsylvania

Payday loans are short-term loans designed to hold borrowers over until their next payday, in exchange for high interest rates and additional fees. While payday loans are legal in some states in the United States, including Pennsylvania, they are prohibited in others, such as Brockton, Pennsylvania. Here’s everything you need to know about payday loans in Brockton, Pennsylvania.

What are payday loans?

Payday loans are a type of short-term, high-interest loan that typically must be paid back within 2-4 weeks, or on the borrower’s next payday. These loans are typically offered by payday lenders, who may operate online or have physical storefronts.

The borrower writes a post-dated check or provides the lender with access to their bank account, and the lender provides them with cash or funds transferred electronically. When the loan comes due, the borrower pays back the full amount borrowed, plus fees and interest, which can be quite high.

Why payday loans are prohibited in Brockton, Pennsylvania

In 2008, the Commonwealth of Pennsylvania enacted a statute specifically prohibiting payday lending. This means that it is illegal for anyone, including payday lenders, to make payday loans in the state of Pennsylvania.

The statute, known as the Check Cashing Licensing Act, defines payday loans as small loans, typically ranging in amounts from $100 to $1,500, with repayment terms of no more than 30 days. It also limits the fees that lenders can charge to a maximum of $9.50 per $100 borrowed, and prohibits lenders from rolling over or renewing loans.

Alternatives to payday loans in Brockton, Pennsylvania

While payday loans may be prohibited in Brockton, Pennsylvania, there are still a variety of lending options available to those in need of short-term cash. Some possible alternatives include:

• Personal loans from banks or credit unions: Personal loans typically have lower interest rates than payday loans, and may have longer repayment terms
• Credit cards: Credit cards may be a viable option for those with available credit, although they may also come with high interest rates and fees
• Assistance programs: There may be local or state-run assistance programs that can provide financial help to those in need

Interesting facts about payday loans in Brockton, Pennsylvania

• According to a report by the Pew Charitable Trusts, 12 million Americans take out payday loans each year, and the average borrower spends about $520 in fees to borrow $375
• A study by the Center for Responsible Lending found that payday loans cost American families $3.4 billion annually in fees
• The typical payday loan recipient is white, female, and between the ages of 25 and 44

Apply Now

While payday loans are prohibited in Brockton, Pennsylvania, there may be other options available to you if you’re in need of short-term financial assistance. At TheGuaranteedLoans, we can help connect you with potential lenders who may be able to provide the funds, support, and terms that you need to manage your finances effectively. Please note that we are a connector service, and not a direct lender. To learn more about how we can help, fill out our online application today!