From the Pennsylvania Public Interest Research Group (http://www.pennpirg.org/home):
The payday lenders and their lobbyists are back in Harrisburg, working to legalize long-term payday loans, where the average loan could cost over 200% in interest rates and fees.
Pennsylvania SB 1379 would create a new credit product, called the “Pennsylvania Financial Services Credit Ladder,” which claims to “end payday lending in Pennsylvania.”
The problem? Pennsylvania already has one of the most effective payday lending laws in the country.
Proponents of the legislation disingenuously suggest that proposals from the federal Consumer Financial Protection Bureau (CFPB) are a “green light” for the legislation, and cite a recent study by the Pew Charitable Trust as evidence of the need for these loans – but this scheme is a wolf in sheep’s clothing, using the CFPB to bring payday lending back into the state.
Changing our law by adopting the CFPB proposal in the state will weaken our consumer protections. In fact, the same Pew Charitable Trust study cited by proponents of SB 1379 says that states like Pennsylvania should keep their strong laws on the books.
Let’s keep it that way!
Urge your State Senator to oppose SB 1379 and any rollbacks to our strong state consumer laws at https://pennpirg.webaction.org/p/dia/action3/common/public/?action_KEY=17272.
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