Last week, a broad diverse group of stakeholders from throughout the Commonwealth voiced their opposition to the abusive loan practices authorized by HB 2191. See the opposition letter. The opposition to these payday loan practices includes many people who understand that interest rates of 300% or higher will only hurt Pennsylvanians, not help them.
The debt trap caused by these high-cost loans due in full on a borrower's next payday are not mitigated by purpoted "protections" such as renewal bans, cooling off periods, or databases. In states with similar provisions, borrowers remain trapped in 9 payday loans on average, and payday business model remains dependent on borrowers stuck in the debt trap (76% of payday loans are due to repeat borrowers). Learn the reality behind payday lenders' claims.
The best solution to the harms caused by these predatory loans is to uphold and enforce Pennsylvania's long-standing existings law. It allows small dollar loans to carry an interest rate as high as 24% annually. Loans made above such rates are illegal, regardless if they're made on line or at a storefront. As such, Pennsylvania's law effectively prevents these predatory lending practices and as a result, the state saves its residents $233 million a year. Read more about payday loans in Pennsylvania.
HB 2191 is not consumer protection. If it passes, consumers and the state willl not be able to stop the debt trap.
Now is the time to get involved. Click here to add your voice today.
The debt trap caused by these high-cost loans due in full on a borrower's next payday are not mitigated by purpoted "protections" such as renewal bans, cooling off periods, or databases. In states with similar provisions, borrowers remain trapped in 9 payday loans on average, and payday business model remains dependent on borrowers stuck in the debt trap (76% of payday loans are due to repeat borrowers). Learn the reality behind payday lenders' claims.
The best solution to the harms caused by these predatory loans is to uphold and enforce Pennsylvania's long-standing existings law. It allows small dollar loans to carry an interest rate as high as 24% annually. Loans made above such rates are illegal, regardless if they're made on line or at a storefront. As such, Pennsylvania's law effectively prevents these predatory lending practices and as a result, the state saves its residents $233 million a year. Read more about payday loans in Pennsylvania.
HB 2191 is not consumer protection. If it passes, consumers and the state willl not be able to stop the debt trap.
Now is the time to get involved. Click here to add your voice today.
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