What You Need To Know About Pennsylvania Payday Loans
Pennsylvania residents have it all, with easy access to mountains, oceans and vast open spaces along with major metropolitan areas like Philadelphia and Pittsburgh (not to mention Washington DC and New York City within driving distance. The low cost of housing, convenient East Coast location and temperature mid-Atlantic climate make the state a favorite place to retire and a destination for young families. The Keystone State boasts diverse landscapes, rich history and access to higher education and business opportunities.
Although the state's economic indicators are generally positive, payday loans are available for residents who need a bit of extra cash flow. Whether your car broke down and you need to get to work or your air conditioner needs repair in the hottest days of July, fix your problem quickly by getting the short-term funds you need, without a credit check. Here's what you need to know about how payday loans are administered and regulated in Pennsylvania.
Payday Loan Regulations in Pennsylvania
If you're seeking a payday loan in Pennsylvania, you'll need to know more about the state laws governing these types of loans. Each state can make its own regulations about the legality of payday loans and the terms and conditions surrounding these loans.
In Pennsylvania, it is illegal for a check cashier to make a payday loan. In 1998, state law began prohibiting loans that rely on post-dated checks for collateral, a category that included most payday lenders. Today, online payday lending companies have expanded access to loans for PA residents by offering payment options other than a post-dated check.
Payday lenders and other banks in PA are also bound by the state's Consumer Discount Company Act. Under this loan, small loans have an interest rate cap of 6%. Licensed lenders can charge higher interest rates capped at 24%, but must be registered with the state Department of Finance and Securities.
Small loans of up to $100 are allowed in Pennsylvania, but they carry a maximum annual interest rate (APR) of $9.50 per $100 borrowed along with an annual service charge of $1.50 for every $50 borrowed. This means that for a $100 short-term loan, the lender can charge up to $112.50. These caps apply to loans with repayment terms shorter than 48 months.
Federal and state lending laws, including these PA regulations, do not apply to payday lenders that operate on Native American tribal land. Federally recognized sovereign tribal states are outside federal and state banking jurisdiction, so they can offer payday loans at higher interest rates and without term limits and restrictions on rollover loans. Many of these lenders offer loans to PA residents online, which increases the availability and flexibility of short-term financing.
How PA Residents Use Payday Loans
When used judiciously, payday loans can help working individuals make ends meet. Because most tribal lenders don't require a credit check for this type of loan, you can access funds for car repairs, home issues and other unexpected expenses when you don't have the credit to qualify for a traditional bank loan.
Although the cost of living in Pennsylvania is generally in line with the national average, residents may struggle to pay for the high costs of items like groceries, health care and transportation. However, housing costs are significantly lower than the national average, with a median home price in the state of about $177,000 compared to about $220,000 across the U.S.
Older adults in Pennsylvania are the most likely to get overwhelmed by unpaid bills. According to data from the U.S. Census Bureau, about 15.4% of state residents older than age 65 live in poverty, compared to just 13% of individuals in this age group nationwide. This statistic places PA fourth in the nation for poverty rates among seniors.
An unemployment rate of 4.2% in PA is just above the national average of 3.9%. Residents benefit from the proximity to large urban manufacturing centers at all four corners of this rectangular state. The largest private employer of state residents is Walmart, followed closely by the University of Pennsylvania itself.
Recent Pennsylvania Payday Loan Changes
A 2018 law designed to increase the availability of payday loans was turned down by the state's House Commerce Committee. Under the failed bill, small-loan lenders would have been allowed to register with the state as credit-repair organizations and interest rates would be categorized as broker fees, effectively skirting the previously passed rate cap on payday loans.
What makes Snappy Payday Loans different?
We're working hard to restore the reputation of payday loans, cash advances and other short term lending services. We believe that all kinds of people should have access to the financial products which can help them to deal with unforeseen expenses even if they have less than exemplary credit records. Unfortunately, the reputation of payday loans in Florida has been marred by less than reputable lenders who prey on the financially vulnerable.
If you've made the informed decision to take out a payday loan you can do so safe in the knowledge that Snappy Payday Loans can help you do so in the safest way possible. Remember we are not a payday lender. Instead we put you in touch with the right payday loans direct lenders in Florida to suit your needs, helping you to make a well informed and zero-obligation decision that's right for you and your household.
PA Payday Loan Rights and Responsibilities
If you have an issue with a payday lender or any other bank or credit union in Pennsylvania, you have the right to make an official report. Contact the Pennsylvania Department of Banking and Securities in Harrisburg by phone at (800) 600-0007 or file a complaint online at the agency's official website. The agency will investigate your dispute and help you reach a resolution with the lender.
Payday lenders that operate online and serve PA customers are outside the jurisdiction of the state Department of Banking and Securities. However, the Pennsylvania Supreme Court ruled in 2008 that any lenders that offer financing to customers within state lines must abide by state laws about interest rate caps and other lending regulations. They also require lenders who lend to PA residents to register with the state under the Consumer Discount Company Act.
If the lender in question is affiliated with a Native American tribe, you can seek advice from the Native American Financial Services Association and the Online Lenders Alliance. Members of these industry organizations must demonstrate that they operate based on lending best practices, use consistent loan qualification criteria, and have standardized lending processes in place. Harassment or abuse during the collection process is prohibited by these organizations.
How the Loan Process Works
When you apply for payday loans through our website, the process is completely secure and confidential. Our 128-bit encrypted connection transmits your application to our partners without the risk of interception by third parties.
We pride ourselves on our simple, streamlined application process. Most people are approved if they meet the following requirements:
- Have an active checking account in good standing
- Are a permanent resident or citizen of the United States
- Are age 18 or older
- Have had a job for at least one month
- Can supply a working phone number and email address
The Types of Lenders Available
You can get payday loans and cash advances in Florida either online or in person. Scores of brick-and-mortar lenders operate in Florida, and some of these lenders also operate online. You can go in person during the lender's business hours or call the lender and begin the process that way. Alternatively, you can fill out an online request form if the lender has one.
Then there are online-only companies such as Snappy Payday Loans. We offer a variety of helpful features:
- With our quick service, most loans distributed within one business day.
- Loans are deposited right into your bank account.
- Lenders are often willing to work with applicants who have bad credit.
- You only have fill out a simple online form.
We do not loan you the money, but we use the information you submit to match you with a direct lender (assuming you qualify for a loan). The direct lenders working with us operate by Online Lenders Association best practices. This online option is convenient because you don't have to leave your home and wait in line or wait for a business to open. We process applications on secure servers 24 hours a day, seven days a week.
Get Cash Now
If you want a loan as soon as possible, check out our easy online form. Start the process here, and see if you're matched to a lender. If you don't like the rates or terms proposed, you are under no obligation to accept the offer. It's a win-win situation in which you get to see whether you qualify and what the terms are like.
Frequently Asked Questions
Here's what you're probably wondering if you've been thinking about seeking a payday loan for fast funds in Pennsylvania.
Who can get a payday loan in Pennsylvania?
In PA, customers must turn to online-based tribal lenders for payday loans. In most cases, you'll need to provide proof of a valid checking account, steady income and an official form of identification. In some cases, you'll also need to show that you have a permanent residence. While most lenders do not run a credit check, others use this information to determine whether you can repay the requested loan.
How much money can I borrow?
Most payday loans are for $500 or less. However, some lenders offer larger loans. You may need to prove that you have the income to pay back a loan exceeding $500 to be approved.
How do payday loans work?
Most payday loans have a 14-day term and interest around $15 per $100. Using this example, you would repay $115 after the two weeks ended. However, you can also opt to pay $15 and roll the $100 payment into another 14-day term, adding another $15 in interest and making the total cost of the loan $130 instead of $115.
Lenders should provide information about the term, payment and interest rate in writing. Avoid signing any loan agreements without these details.
Kelly Stone - President
Kelly Stone - President
Kelly is a graduate of Northwestern University's Kellogg School of Management with a Master's Degree in Finance. She began her career in the short-term lending industry in 1996. Starting with one store, she grew the business to over 50 storefronts offering payday loans. As the industry started to shift online, she changed gears and started Snappy Payday Loans, allowing consumers nationwide to apply online for a payday loan. Through relationships and time, Kelly has built a large network of lenders that offer loans that Snappy utilizes today.