Posted by : Dougie Morris
Payday loans are small, short-term cash loans. Generally, consumers write a post-dated check for the desired amount, in addition to an interest fee. The lender will hold onto the check until the next payday (usually 14 days) and then deposits it. Consumers also have the option to return with cash to reclaim the check. Or, in some cases, consumers can repay the loan with a signed agreement which allows the lender to electronically withdraw the funds from their bank account on a pre-determined date. Payday loans are regulated by state; therefore, it’s important to understand your state laws.
Payday Loan Laws in Pennsylvania
In 2006, the state of Pennsylvania passed a bill to prohibit payday loans. The bill suggests that the high interest rate associated with payday advances strongly correlates with a vicious debt cycle. However, many people would argue, that if used for their intended purpose, cash advances provide a solution for financial emergencies.
Pennsylvania residents have alternative loan options available to them. Online lenders specifically cater to individuals in the same situation. And, in most cases, online lenders such as MoneyNowUSA will qualify you for a higher loan amount at a lower rate.
The application process is simple. We ask that you provide a couple pieces of documentation and answer a few easy questions. In a matter of minutes, your application will be approved or denied. If approved, you’ll be asked for an e-signature on the terms and conditions contract. Typically, the money will be wired directly into your account within one hour.
To contact the Pennsylvania Department of Banking, call 717-787-7334 or visit online.