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Home » Issues » Financial Privacy & Security » Predatory Lending

Predatory Lending

What's New

PennPIRG and our allies stopped an anti-consumer payday lending bill once again. PennPIRG was recently able to confirm the state Senate Committee on Banking and Insurance would not be considering HB 1478 (a bill which would have authorized payday lending under PA law) for the foreseeable future. This comes on the heels of the Banking Secretary Bill Schenck pulling his department's support for HB 1478.

Overview

We've all seen the advertisements—they promise "Quick Cash 'Till Payday," or "Quick Financial Fixes." Just fill out a few simple forms, and short-term cash flow problems are solved. But as the old adage goes, if it sounds too good to be true, it probably is. Payday lenders hook consumers into a cycle of unmanageable debt, as borrowers saddled with outrageous fees take out new loans to pay the old.

DON'T CALL THIS NUMBER—Several states have taken action to rein in predatory lenders, but not all. PennPIRG fights to regulate the industry’s misleading promises and triple-digit interest rates, and to educate consumers on how to protect themselves.