Payday Lenders are Back – 2015 Edition
Before Thursday’s frenzy of turkey, football, and family debates about politics begin, another annual tradition is taking place in Harrisburg: an attempt by out-of-state payday lenders to bring their predatory products to the Keystone state. While a bill has not yet been introduced, a draft is being circulated that would allow high cost installment loans, like those seen in California, to be issued in Pennsylvania.
Installment loans, unlike payday loans, are paid back over time instead of in one lump payment. But that doesn’t make them any safer. In fact, the draft bill has a deceptive interest rate that could reach as high as 200-300% and would allow for borrowers to take out an unlimited number of loans at once.
Pennsylvania has a long history of protecting our low-income families from financial predators like these. For years, we’ve been able to do that because of advocates and volunteers like you. Now we need your help again.
HOW YOU CAN HELP:
– Join our Coalition calls for updates and alerts
– Call your contacts in Harrisburg and demand that they protect Pennsylvania’s strong consumer laws. Key messages:
- Once again, payday lenders are trying to bring their predatory loans into Pennsylvania.
- While a bill has not yet been introduced, a draft proposal is being circulated that would allow high cost installment loans, with no maximum cap on fees and no protections against repeat refinancing.
- It’s a model that the payday lenders have tried all over the country. That’s how we know these payday installment loans will carry fees that push the interest rate to 200-300%, and will push borrowers deeper and deeper into a cycle of debt.
- We continue to oppose bringing 200-300% interest rate debt-trap loans into Pennsylvania.
- Please stand with us to keep our strong, existing protections against predatory lending in place.
– Write a Letter to the Editor.
– Join us in Harrisburg for a lobby day.
This Thanksgiving, we’re grateful for the work of people like you. Thank you for all you do for the state of Pennsylvania!