Updates and Resources:
Payday Lenders' Bill Stalled
A fast-moving, late-dropped bill that would allow payday lenders to evade our state interest rate cap had been scheduled for a vote before the House Commerce Committee on June 20th. The bill, HB 2429, is yet another sneak attack to make high-cost predatory loans in PA.
Legislators heard the call from a diverse set of voices not to harm our most vulnerable, and the payday lenders currently do not have enough support to move the bill forward. They are drafting an amendment to the bill. One idea being floated would legalize high-cost, long-term payday loans, similar to what the payday lenders have tried to pass through the PA Senate in prior sessions. The amendment has not been released. Stay tuned...
PA Groups Respond to CFPB Rule
Pennsylvania groups applaud the CFPB for recognizing the devastating harm caused by predatory payday lending, and for affirming that state interest rate caps, like we have in PA, are the best way to protect people from abusive lending practices. Statement available here.
Payday Lenders' Trojan Horse Fails: 2015-2016 Session
The payday lenders were back in Harrisburg.
On June 1, 2015, Senator John Yudichak, who has co-sponsored payday lenders’ bills in prior sessions, circulated a memorandum urging his colleagues to join him in co-sponsoring legislation to legalize a new loan product in Pennsylvania, called the “Pennsylvania Financial Services Credit Ladder.”
The memo cites current Consumer Financial Protection Bureau (CFPB) proposals as a model for the legislation, as well as a recent study by the Pew Charitable Trust as evidence of the need for these loans.
The problem? Pennsylvania already has one of the strongest payday lending laws in the country.
Since the CFPB cannot set interest rate caps, changing our law by adopting the CFPB rule in Pennsylvania will weaken it. In fact, the same Pew Charitable Trusts study cited in the co-sponsorship memo says that states like Pennsylvania should keep their strong laws on the books.
The bill that was filed, SB 1379, would have legalized long-term predatory payday loans. After quick action by faith groups and military veterans and others, the bill did not pass last session.
In The News- prior sessions